GTC Hungary to recruit new directors

Leading developer strengthens its team in response to new business needs

GTC Hungary strengthens its team in response to business needs. Edina Magó will step up as Marketing Director, and Nikoletta Ispánki will join the company as Commercial Director. New hires reflect personnel and business changes within GTC with a strategic focus to enhance the growing markets.

Edina Magó joins GTC as Marketing Director

Starting from July 1, 2022, Edina Magó will join GTC as Marketing Director. Edina’s duties will include coordination and management of GTC’s region wide marketing, social media, PR, and branding strategy, as well as coordination of the marketing teams in GTC’s local markets. Her job will also include tasks and processes affecting GTC’s overall image across the region.

With more than 13 years at White Star as Marketing and PR Director, Edina Magó is a seasoned expert to execute GTC’s communication goals.

Nikoletta Ispánki joins GTC as Commercial Director

Recently, the number of income-generating assets including potential development project sites owned by GTC in Hungary has increased significantly. This caused a substantial change in the structure of GTC’s portfolio and tenant mix, as well as its functions. A growth like this presents not only huge opportunities, but also challenges to the portfolio and the team.

As a response to that development, Nikoletta Ispánki joined the company as Commercial Director to help, support, oversee and manage GTC Hungary’s leasing team. Nikoletta worked for IWG (Regus, Spaces, Signature) before joining GTC and was responsible for the entire Hungarian operation, as Country Manager. Previously, she worked in the leasing field for Skanska and Cushman & Wakefield.

“Since our development activity and portfolio in Hungary has been expanding more and more dynamically, we saw a need for strengthening our team. The current wave of new hires and promotions is a response to immediate business needs and arising opportunities: we need to be resilient and stick together to navigate through a constantly changing economic environment. It is key to GTC’s success and profitability to be able to adapt to situations like this at the highest possible level and speed. Therefore, I am thrilled to welcome new members of the GTC family on board and look forward to a great many successes on our record” – commented János Gárdai, Chief Operating Officer at GTC.

Ziv Gigi promoted to Country Manager of GTC Bulgaria and Romania

GTC continues a strategic streak of enhancing the Group’s strength through internal promotions and is pleased to announce that Ziv Gigi has been promoted to Country Manager of Bulgaria and will be responsible for all operations of GTC in that market, in addition to his incumbent role as Country Manager of GTC Romania.

Ziv Gigi has more than 15 years of C-suite experience in Central and Eastern European real estate markets, developing and managing 450,000 sq m  of office and retail projects through his career with GTC. Commencing in GTC in 2008 and after serving as a CFO for Bulgaria and Serbia, in 2021 Mr Gigi was nominated as Country Manager of Romania in testimony to his seasoned skills in feasibility, acquisition, project conception, financing, development and operational management of large scale real estate projects in dynamically expanding property markets. His executive financial expertise and aptitude in growth investments were conducive to his current promotion as Country Manager of Bulgaria and Romania, two fast developing EU countries with potent property markets.

 “I’m excited for yet another opportunity with GTC. Bulgaria is a dynamic and promising strategic location for the company’s development and growth. I am sure that my experience with GTC to date will help me take over the role smoothly to even better support the company in growing the portfolio of brand-new projects and implementing operational excellence” – commented Ziv Gigi, Country Manager of GTC in Romania and Bulgaria.

“During his time with GTC, Ziv has proven to be an exemplary leader, going above and beyond the call of duty. His promotion to Country Manager of Bulgaria is a consequence of his exceptional performance as well as response to our business needs. We want to leverage the market momentum and do our best to grow in the Bulgarian market – portfolio and operation -wise. With Ziv leading our operations both in Romania and Bulgaria, I am confident we will be able to achieve these and other ambitious goals” added Zoltan Fekete, GTC’s CEO.

Apart from his impressive expertise in development and asset management, Ziv Gigi is a certified public accountant (CPA) with over a decade of financial management experience specializing in capital raising and strategic planning. Before joining GTC, Ziv worked as an auditor for Ernst & Young Israel, and as a financial manager for a private developer in Hungary and Turkey. 

Partnership for the protection of biodiversity: GTC and WWF Poland start cooperation

GTC, one of the leading developers in Central and Eastern Europe, has established a partnership with WWF in Poland. With the support of WWF Poland, GTC will educate its employees as well as investors, business partners and local communities on environmental protection and encourage joint ecological activities.

What does tiger, the world’s largest cat, has in common with the brown bear, Europe’s largest land predator that lives in Poland? Both predators need support if we want the future generations to enjoy them. Due to human actions, the world’s tiger population has declined 25-fold, dropping 95% in the last 120 years. On the other hand, the brown bear was once found in almost all of Poland. Currently, the area of its occurrence is limited only to some mountain areas. But even there, concrete actions should be taken to maintain acceptance for its protection. 

GTC’s ambition is to run its business in a responsible manner and contribute to the achievement of UN Sustainable Development Goals especially Goal 15 related to sustainable land ecosystems and biodiversity. Therefore, it is also important to protect the natural environment and the wildlife living in it, including endangered species and species needing protection. The cooperation with WWF Poland – a respected environmental organization – will allow for conscious and comprehensive inclusion of this idea in the company’s activities within the real estate market in Poland. The developer has been following its sustainability policy for many years. GTC’s office buildings in Poland are all powered by green energy, and 88 percent of the Group’s portfolio has green certificates. GTC is also the first commercial developer in CEE to publish an ESG report, indicating its determination to have all new and – if possible – existing buildings, BREEAM or LEED certified. Financial support for wildlife conservation will complement these efforts from now on.

Being aware of the pressures that business puts on the environment, we invited the WWF Poland to join forces in the efforts to educate the real estate market and undertake effective actions on nature protection. GTC is launching a partnership with WWF and will provide philanthropic support to the brown bear conservation program in Poland and tiger conservation efforts. Together with WWF Poland, GTC will build awareness among Polish society about the need to protect these species and their habitats” – commented Grzegorz Strutyński, GTC Country Manager Poland.

WWF Poland will support GTC with its expertise and experience. GTC, besides financial support and educational activities, will engage with WWF Poland and encourage donations (known as symbolic adoptions of animals in need of protection) and support fundraising activities. The initiatives will be carried out in the developer’s office buildings and shopping centers, as well as via the new building app “Welcome GTC”. 

We are delighted to welcome GTC amongst our strategic partners. We believe that nature can be protected with people and for the people. Everyone should know what impact we have on the planet, so that we can change this impact into a positive one, for example, by symbolically adopting animal species that are in danger of extinction and in need of protection. GTC, as our new strategic partner, can effectively engage not only its employees but also investors and visitors to GTC-owned shopping and business centers. Only pro-ecological changes made by businesses, combined with the actions of individuals, can bring positive change for people and for nature. There is still a lot to be done, but the future of our planet depends on each and one of us. Together Possible!” – commented Marta Smoręda, Senior Communication Specialist at WWF Poland.

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Information on endangered species and their habitats:

Brown bear (Ursus arctos)

POPULATION in Poland: over 110 individuals

Bears, together with wolves and lynxes, are among the three largest predators inhabiting Polish forests. An adult male bear can weigh up to 300 kg, and a female 150 kg. Thus, these animals are counted as one of the largest land predators on Earth. In Europe, it lives in less accessible mountain ranges and areas in the northern part of the continent. In Poland it occurs mainly in the Bieszczady and Tatra Mountains. In recent years migrating specimens have appeared in north-eastern Poland.  This beautiful and majestic animal is characterized by an unusual love of honey, long winter sleep and wonderful fur. Among forest species it is distinguished by its intelligence and sense of smell. Its innate cunning allows it to obtain food even in places where it is not welcome, e.g. apiaries. It is therefore very important to protect apiaries in the area where this predator lives. Recently, with the expansion of the occurrence of bears in Poland, some individuals began to appear near tourist routes and areas inhabited by people, where they look for food. They most often visit garbage containers.

Threat: Humans pose the greatest threat to them. Loss of habitat available to the bear and hunting and poaching have reduced the range of the species to areas where human population densities are low. However, the destruction of apiaries and the visits by bears to areas where people live reduce the acceptance of this species.

Solution: Thanks to WWF devices such as electric apiary fencing and “bear-proof” litter boxes, conflict situations are reduced. This helps to maintain acceptance for the protection of bears in Poland.

Tiger (Panthera tigris)

Population: around 3900 individuals

The tiger is the largest wild cat living on Earth. In many cultures it is considered a symbol of strength, independence and courage. Even 120 years ago, huge areas of Asia were inhabited by about 100,000 tigers, which is more than 25 times more than today! Tigers are a so-called umbrella species. This means that by protecting them, we also ensure the survival of other valuable species and preserve their natural habitats. The territory occupied by an adult male tiger is usually as large as several hundred square kilometers. Tigers play a key role in the ecosystem. These wild cats naturally regulate the populations of the animals they feed on, thus ensuring the preservation of biodiversity and the sustainability of the environment they inhabit. This benefits not only local communities who benefit from healthy environmental resources such as water and food, but all of Earth’s inhabitants.

Threat: For the tiger, the greatest threats come from human-induced pressures: loss of natural habitat, poaching and illegal trade, tiger farms, but also human-induced climate change.

Solution: In order to protect tigers more effectively, WWF Poland supports the activities of WWF Malaysia in Belum-Temengor and WWF Myanmar in the Dawna Tenasserim area. For many years, it has been running joint projects with key involvement of local communities, engaging in the process of collecting information on local populations of Malayan tiger and Indochinese tiger through, among others, the purchase of photo-traps. WWF Poland provides financial support to anti-poaching and monitoring patrols, which search the forests, remove snares, impede the activities of poachers and collect information about tigers and other forest inhabitants. It also conducts educational campaigns to raise people’s awareness.

GTC promotes Danny Bercovich to Regional Director of Retail

Danny Bercovich was promoted to Regional Director of Retail of GTC. Previously, he has served the company as the CEO of GTC in Bulgaria and Romania. In the new role Mr Bercovich will steer the company’s operations and growth strategy in the retail segment.

Danny Bercovich has been associated with Globe Trade Centre since 2012, dealing with office and shopping malls projects as Head of GTC Romania and later GTC Bulgaria. He actively participated in strengthening company’s reputation in the SEE commercial real estate development market. As a highlight of his professional journey with GTC, Danny established a landmark office project Advance Business Center – a top design, modern green building in the office hub of Sofia that won local and international awards, currently hosting renowned companies as tenants in Bulgaria. Besides, Mr Bercovich was handling the sales and purchases of shopping malls in Bulgaria throughout the years, optimizing their performances and adapting them to the dynamic changes of the market. Lately, he was also involved in creating a strategy towards the GTC’s retail portfolio across the countries in which the Group operates. Leveraging his rich experience in development and operation of retail properties in the SEE markets, as well as GTC’s dedicated view on its retail portfolio, Danny Bercovich will steer the Group’s strategy of focusing on the shopping centres as Regional Director of Retail.   

“Shopping centres are undergoing changes and facing challenges, but also providing huge opportunities for us. We need to make sure that we are focusing on maximizing the performance of our retail portfolio. This requires full dedication from an experienced person with a market insight and a foresight into shopping malls sector, fluent in both operations and performance management. Throughout his career at GTC, Danny Bercovich has proven to be a committed and highly professional expert, as well as a leader. I am confident with Danny as a Regional Director of Retail, we can further expand and develop within this dynamic real estate segment” – commentedZoltán Fekete, CEO at GTC.

The promotion of Danny Bercovich to the position of Regional Director of Retail is a strategy-driven move by GTC to strengthen company’s position within commercial real estate and, in particular, to improve its shopping malls’ performance. Ziv Gigi, country Manager of GTC in Romania, will take over the former responsibilities of Mr Bercovich as Head of GTC Bulgaria.

Robust Q1 2022 results across all the financial and operational metrics

Q1 2022 FINANCIAL HIGHLIGHTS

  • Rental revenues up to €42m in Q1 2022 (€37m in Q1 2021)
  • Gross margin from rental activity up to €30m in Q1 2022 (€27m in Q1 2021)
  • Adjusted EBITDA up to €26m in Q1 2022 (€24m in Q1 2021)
  • FFO I at €16m in Q1 2022 (€14m in Q1 2021), FFO per share at €0.03
  • EPRA NTA at €1,288m as of 31 March 2022, EPRA NTA per share at €2.24 (PLN 10.43)
  • Net LTV at 43%
  • Proposed dividend from 2021 profits of
    PLN 0.28/share
  • Strong cash position of €278m and available credit facilities in the amount of €94m

Q1 2022 PORTFOLIO HIGHLIGHTS

  • Occupancy at 91% as of 31 March 2022 (90% as of 31 December 2021)
  • Disposal of Serbian office buildings for €268m (above the book value) completed in January 2022
  • Completion of Pillar, Class A office building in Budapest (29,100 sq m GLA)
  • Commencement of Matrix C, Class A office building in Zagreb (10,500 sq m GLA)
  • 88% of assets green certified, 11% under certification process

“2021 has brought excellent performance figures and as a result, we recommended our shareholders to pay a dividend of PLN 0.28 per share on 2021 profit, marking a return to regular dividend payments. Our Q1 2022 results show that this year is also going to be solid, despite the disposal of the Serbian office portfolio. Operating performance, particularly of the retail sector is very strong and promising, while the office sector will further require our attention. We will be also focusing on development of the office properties, launching our new project in Zagreb in Q1, followed by a launch of an office building development in Budapest in Q2. With a strong cash position, we are open to investment opportunities and actively screening the markets to boost our growth.” commented Zoltán Fekete, GTC’s President of the Management Board.

“The Q1 2022 results on the revenue side are showing a great improvement, while new acquisitions are covering for the lost revenues due to the disposal of Serbian portfolio, our retail sector came up with a strong increase, on both revenue side but what is more important on the performance side with turnovers being 12% above 2019 results. Our balance sheet and cash position are very strong. Net debt stays virtually unchanged, LTV at 43% and cost of debt still at an all-time low of 2.16%. We are very satisfied with our results and looking forward to the remainder of the year.” – commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

Pre-school and nursery at University Business Park

At the turn of May and June this year, the first Łódź unit of the Fair Play sports and language nurseries will open in the University Business Park office complex owned by GTC. The facility will offer space for 25 preschool children and 50 children in nursery groups.

According to research, as many as 71 percent of employed parents indicate that access to a daycare centre or a nursery is often what they miss the most. The opening of a new place dedicated to children in the very centre of Łódź will serve as a great convenience for the nearby residents and employees of University Business Park.

Fair Play Nursery and Kindergarten is not only the first unit of this network in Łódź, but also the first facility of this kind in a GTC property in Poland. Fair Play pays a lot of attention to every pupil, their main domain being education through sport and foreign language studies. The youngest pupils will enjoy development-oriented games and activities, developed according to an original educational programme, which aims to prepare children for further learning and integrating in society in the best possible way. To maintain the balance between learning and fun, relaxation and calming activities are also offered during the day. The facility will be open from Monday to Friday from 7:00 a.m. to 6:00 p.m. Children from 2.5 to 6 years of age are admitted to the kindergarten, and children up to 3 years of age are admitted to the nursery. Recruitment for all age groups is currently underway. The Fair Play nursery and kindergarten will be located on the ground floor of the University Business Park building B.

We put relations with our tenants first. We want them to feel comfortable and safe in our buildings, so we are constantly improving our offer. A kindergarten or a nursery in an office building is a great convenience for parents and a chance to effectively reconcile work and family life. From a practical point of view, it saves a lot of time and minimises the CO2 emissions produced by driving around the city and standing in traffic jams – says Karolina Kucharczyk, Senior Asset Manager GTC Poland.

Looking for the ideal location for our first nursery school in Łódź, we kept in mind two aspects: a friendly, nice, safe environment and a well-connected point in the city centre. Hence the choice of University Business Park. We are also looking forward to working with GTC, who proved to be a responsive and efficient partner, open to our needs. We believe that this will be a good, long-term cooperation and we hope that Łódź residents and their children will love our kindergarten – says Monika Kamińska, Director of the Łódź unit of Fair Play nursery and kindergarten.

At the conclusion of the agreement with Fair Play, GTC, the owner of University Business Park, was represented by Colliers. However, the preschool is not the only facility that GTC offers in its Łódź complex. From December 2021 University Business Park tenants can also use an office management application “Welcome GTC”, which facilitates building a local community. It allows employees to book meeting rooms, order meals from local restaurants or take advantage of the retail offer around the building.

Recently, we have been noticing growing tenant expectations regarding the amenities available in their workplace – a café and a shop are no longer enough. As a result, developers have started to equip their investments with a social and city-making features – office complexes have become places where people not only work, but also run daily errands or hang out after hours. This follows the latest trend of introducing the concept of the 15-minute city, where all facilities and the major service points, such as kindergartens, offices or shops are within a 15-minute walk from home or work. The kindergarten located in University Business Park perfectly fits in this trend and will certainly be a great convenience for parents working in and around the building – says Anna Wilhelmsson-Polak, Senior Associate at Office Agency, Colliers.

University Business Park is a complex of two 7-storey class A office buildings with a total area of over 40,000 sqm. With architecturally integrated green patio in its center, the office complex offers a modern canteen and cafe for tenants and guests, as well as a number of amenities such as comprehensive bicycle infrastructure. University Business Park is located in the city center, at 178/180 Wólczańska Street, near the Lodz University of Technology, the Galeria Łódzka shopping center, and the Atlas Arena concert hall. The tenants include, among others: Barry Callebaut, Accenture, UPS, Mobica or Fujitsu Technology Solutions.

Acquisition driven growth

2021 FINANCIAL HIGHLIGHTS

  • Gross margin from rental activity at €128m in 2021 (€119m in 2020)
  • Adjusted EBITDA at €113m in 2021 (€105m in 2020)
  • FFO at €74m in 2021 (€66m in 2020), FFO per share at €0.15
  • EPRA NTA at €1,272m as of 31 December 2021, EPRA NTA per share at €2.21 (PLN 10.18)
  • LTV adjusted for capital increase and disposal of assets in Serbia at 42.0% (45.2% as of 31 December 2020)
  • WAIR at historical low of 2.16²% (2.3% as of 31 December 2020)
  • Capital increase completed in December 2021
    • 88,700,00 issued at PLN 6.40

TRANSITIONING FROM SECURED TO PREDOMINANTLY UNSECURED DEBT

  • We achieved ratings during 2021
    • Scope Ratings: investment grade at BBB- with a stable outlook
    • Fitch Ratings: investment grade at BBB- with a stable outlook
    • Moody’s Investors Service: at Ba1 with a positive outlook
  • Green bonds issued in 2021:
    • €54m of unsecured bonds issued on the Hungarian market in March 2021
    • €500m of unsecured Eurobonds issued in June 2021
  • Repayment of 9 loans from €500m green bonds completed (9 loans repaid with a total of €452m)
  • Unsecured debt at 50% and unencumbered properties up to 45% (9% as of 31 December 2020)

“2021 was an extremely important year for GTC. It was the one of the most dynamic years in the Group’s history. We traded assets on a big scale shifting our portfolio to higher rated countries, developed new assets, leased both retail and office space, issued debut Eurobonds and increased capital. And all of that still in Covid-19 impacted environment. On the top of that we achieved very good financial results with FFO reaching 74 million euro and EPRA NTA increasing to 1.3 billion euro. We started new investments and acquired land plots to secure further dynamic growth of the Company.” – commented Zoltán Fekete, GTC’s President of the Management Board.

“The decision to change our financing structure which was taken in late 2020 resulted in a very thorough analysis of our Group by the world’s most reputable rating agencies Fitch and Moody’s which rated us at BBB- (Fitch) with a stable outlook and Ba1 with a positive outlook (Moody’s). This allowed us to tap the international bonds market and approach the largest investors in the unsecured debt universe. We debuted with the issuance of 500 million euro bond which allowed us to repay roughly 50% of our secured debt. Very fast growth of 2021 resulted in the short term LTV hike, which was brought down to 42% with the disposal of Serbian assets and very successful capital increase conducted in late 2021.  In addition, we have secured our first revolving credit facility in the amount of 75 million euro to support our liquidity. We achieved very low average interest rate of 2.16% and extended debt maturity profile to over 5 years creating a much safer investment for our shareholders”. – commented Ariel Ferstman, GTC’s CFO and Member of the Management Board.

GTC starts the development of the third building within the Matrix Office Park in Zagreb

Expanding on the success of its project in Zagreb, GTC is set to further develop the Matrix Office Park by adding another building to the complex. The third building, Matrix C, which received a building permit earlier this year, will be the newest extension to Zagreb’s most modern and sustainable business center. Just like the previous two, Building C is meant to provide innovative office space, while maintaining a high ecological standard for an international tenant mix.

The first two buildings of the Matrix Office Park which is located on the edge of the business district of the Croatian capital were completed in 2019 and 2020 respectively, and currently provides approximately 21,280 sq m of modern, sustainable commercial office, retail, storage, and parking space, available for rent by both the local and international business community. Avenue Mall and Avenue Center in Zagreb, which provide class A office space and facilities located close to the city center, along with a shopping mall in one of the busiest intersections in Croatia, are another example of the company’s successful presence on the Croatian commercial property market.

Following the success of the first two buildings in the Matrix Office Park, which are both at 95% leased, GTC has decided to further expand its presence on the Zagreb market by developing Building C. The new area will add approx. 10,500 sq m of gross leasable area with high-quality office space, retail shops, bicycle storage and other services and amenities. The building will additionally provide on-site, under, and overground parking for 250 vehicles and electric vehicle charging lots.

Sustainability and minimalizing the environmental impact are both important aspects of the company’s operations, with GTC continuously putting a lot of effort into assuring the ecological construction and functioning of its properties. The Matrix Office Park new building is no exception to that. Buildings A and B have already been awarded LEED Platinum certificates, expanding GTC’s portfolio of green projects. The new building is set to become another sustainable business hub for Croatian and international residents. Upon completion, Matrix C will DGNB Gold certified.

 – I’m very glad that our Croatian portfolio is growing so rapidly and can present outstanding results within the CEE market. The new building, in a modern business complex, like Matrix Office Park, is a great opportunity for GTC to further expand and lead the way in the development of the real estate market in Zagreb and the market itself to grow in new directions. The new building is also a great opportunity to strengthen our valuable relationship with tenants and provide them with sustainable solutions, which are now necessary more than ever, in every aspect of life and business – says Arn Willems, GTC Managing Director Croatia.

The Matrix Office Park is already attracting a very well-known, international tenant mix from various industries. These include tenants from the fashion, retail, financial services, and IT sectors, many of whom are looking to expand further within the Matrix Office Park. This will allow for the park to become a truly modern hub for many, diverse cultures and industries, with the comfort and safety of the residents at the forefront of its operation. The shell & core of the building is scheduled for completion in Q2 2023 ready for the fitting out of tenant areas.

Zoltán Fekete steps up as the President of GTC Management Board

ZoltánFekete was appointed the President of Management Board of GTC. Previously, he has served the company as the Chairman of The Supervisory Board for two fruitful years. In the new role Mr Fekete will steer all GTC’s operations in the region.

Zoltán Fekete has been associated with GTC since July 2020. As Chairman of the Supervisory Board, he actively participated in strengthening the name of GTC as an industry leader in the CEE commercial real estate development market. What is more, Zoltan’s proven track record in investment banking and private equity contributed to reinforcing GTC’s reputable image in the eyes of strategic partners, key investors and independent financial institutions. The nomination of an experienced and well-known expert for the position of President of the Management Board confirms GTC’s desire to strengthen its position through M&A transactions as well as purchasing particular assets and land plots in attractive locations and developing further commercial real estate projects.

“I am truly grateful for the trust and confidence my colleagues from the Supervisory Board have in me to step into this role. This thrilling yet challenging responsibility keeps me on my toes as I look forward to writing another chapter in GTC’s history amid uncertainty of the rapidly changing world. So far, we have been on top of investors’ minds for 25 years and the pride I feel for the great efforts of our team who have made all the achievements possible makes me positive about our future as a company. With such truly dedicated real estate professionals on board, I will see to the GTC’s growth, leveraging lessons learned and best practices of my predecessors. I am sure together we will continue to develop and surprise stakeholders with new remarkable results” – commented Zoltán Fekete, newly appointed President of the Management Board.

Zoltán Fekete graduated from the Law Faculty of Eötvös Lorand University and obtained an MBA in Banking from the University of Exeter, UK. Mr Fekete has over 30 years of experience in international investment banking and private equity. As an investment banker he worked for HSBC London, Credit Suisse First Boston in Budapest, London, and Israel. During his career, Mr. Fekete has dealt with a large number of IPOs, M&A transactions and private equity investments in the field of real estate, technology, and life sciences. Between November 2015 and March 2022, he acted as CEO of Optima Investment Ltd.

GTC’s milestone Pillar building in Budapest has been launch

GTC has just commissioned a new, premium-quality office building in Budapest, Hungary. The Pillar office building is an important development for the market, with the largest pre-lease contract in the history of the Hungarian office market, signed by GTC and a leading US energy company ExxonMobil, in 2019. The newest addition to the GTC Hungarian portfolio answers the visible, strong demand for modern office spaces in the country.

The Pillar building, located in the rapidly growing business quarter of the Hungarian capital, after its inauguration earlier this year is now providing up to 29,000 sq m of commercial area at a premium level. Already fully leased, the building is offering café bars, restaurants, co-working spaces, post office, playroom, relaxing garden, bike facilities, shopping experience, conference center, and most importantly, modern, premium-quality office spaces for its main tenant ExxonMobil – who signed a pre-lease contract before the building was completed. The opening puts emphasis on the importance of the Hungarian property market and only furthers its development.

I can proudly say that Pillar is becoming a landmark commercial space in Budapest and on the Hungarian market itself. This innovative, sustainable space which, even before being completed, became a house for such a prominent company as Exxon Mobil, has the potential to broaden the market and further develop our business scene  – says Ede Gulyás, Country Director of GTC Hungary.

The building was designed to suit the expectations and needs of international tenants but more importantly to minimize its environmental impact. Sustainable solutions have been incorporated into the design which allows clients to enjoy the environmentally friendly product. Pillar was designed and constructed in line with LEED Platinum certification and is now part of GTC’s eco-friendly portfolio. Great attention to detail and tailor-made solutions were equally important as well as the building’s main occupier who greatly contributed to the design of the building and worked closely with GTC to ensure Pillar will be the best possible space for Exxon’s employees.

We appreciate the great and ever-growing potential of the city of Budapest and we are proud to have put yet another stamp on its dynamic and extremely promising real estate market. Hungary is an important and growing market for us, which we plan to develop further in the upcoming years – says János Gárdai, GTC’s Chief Operating Officer.

Aside from Pillar and completed in 2018 White House complex, in 2021 GTC invested over 310 million EUR in Hungary buying properties like Váci Greens D, Ericsson and Evosoft headquarters, Váci 188. The developer is also planning further projects in their current pipeline Center Point III and the Twins, which altogether will deliver over 75 000 sq m of ultra-modern office space to the Budapest real estate market.