Szervita Square Building. Pre-leased by SPACES, Financed by UniCredit Bank Hungary
January 25, 2019
Year-end of 2018 brought two major developments for Szervita Square Building, a LEED Platinum certified, sustainable multi-purpose commercial and luxury residential property to be handed over in 2020 by Budapest-based Horizon Development.
The owner of the property – SZ8 Real Estate Development Investment Fund – signed a financing agreement with UniCredit Bank Hungary for the realization of the project and concluded an 8,500 sqm pre-lease deal with SPACES for all four floors dedicated to office use in the mixed-use building.
Szervita Square Building is the most anticipated premium development in downtown Budapest with a total area of 14,900 sqm. The building features retail spaces on the ground floor, the mezzanine and the -1st floor; office premises on floors 1, 2, 3 and 4; as well as luxury residential units on floors 5 and 6. The modern 7-story property – with its unique shape, lightweight and ethereal structure, soft facade contours and reflecting surfaces – fits organically in its historic setting of famous Hungarian Art Nouveau buildings. Underground levels -2, -3, -4 and -5 will accommodate both private and public parking. The park in front of the building will serve as a much-needed social space for the general public, contributing to Szervita Square becoming a downtown meeting point and community hub.
Attila Kovács MRICS, Managing Partner of Horizon Development reflected on the two agreements signed recently: “We are glad to have achieved a final agreement with UniCredit Bank Hungary regarding the financing of our ongoing prime development, Szervita Square Building. This project – that received numerous architectural and development awards already in the concept phase – will be the crown jewel of our portfolio, and we have absolute trust in its commercial viability and ultimate financial success. With all four office floors already dedicated to accommodating the space requirement of our exclusive tenant, SPACES, as well as the currently experienced strong demand for the retail and luxury residential units of the property, we have no doubt that the final numbers will confirm our development ambitions, as well as UniCredit Bank Hungary’s decision to entrust the project. To give a status update of the development progress: the structural works are expected to be completed in Q1 2020, and we aim at concluding the entire fit-out period by Q4 2020.”
Nikoletta Ispánki, Country Manager at IWG Hungary (concept owner of SPACES and Regus) told us why they chose Szervita Square Building as the first project in Hungary where their innovative and creative workspace concept is being introduced at such a large scale: “SPACES is IWGs’ premium co-working and serviced office brand introduced 11 years ago, with the first office opening in Amsterdam in 2008. Within the last decade we set up over 240 offices across the globe with the aim to provide the perfectly sized, flexible and tailored work environment for our customers where inspiration, creativity, comfort and community are at the forefront of considerations. As the exclusive office tenant of Szervita Square Building we are absolutely convinced that our brand will greatly benefit from the best downtown location of the Hungarian capital, as well as the top technical and aesthetic quality of this prime building.”
Gábor Pető, Real Estate Financing Director of UniCredit Bank Hungary Zrt. highlighted the outstanding value of the project: “As a leading bank in real estate finance, UniCredit is proud to be involved in the best development projects as a financing partner. After two previous successful cooperations Szervita Square Building is our third project with Horizon Development. The financing of such top-quality projects contributed to UniCredit being honored as “The Financer of the Year 2018” in Hungary at the Portfolio Property Awards.”