Gary J. Morrell Saturday, March 2, 2019, 00:32 Horizon Development has signed a financing agreement with UniCredit Bank Hungary for the development of the mixed-use, 15,000 sqm Szervita Square. It has also concluded an 8,500 sqm pre-lease with Spaces for the four levels of office space in the mixed-use complex. The project is a rare development in the central District V where it is becoming increasingly difficult to source development sites. The development is owned by the SZ8 Real Estate Development Investment Fund, which is in turn 100% owned by Horizon. Szervita Square will be the first project where IWG Hungary (the concept owner of Spaces and Regus) introduces its coworking workspace concept on a large-scale in Budapest. The LEED “Platinum” certified development will consist of retail space on three floors (-1, mezzanine and ground floor), office space on floors one to four and luxury residential units on the 5th and 6th floors. The seven-story structure is designed to fit organically into the historic setting of Hungarian art nouveau buildings in the heritage protected area of the city. A park in front of the building is designed to provide a public space for the area. “We are glad to have achieved a final agreement with UniCredit Bank Hungary regarding the financing of our ongoing prime development,” said Attila Kovács, managing partner of Horizon Development. “With all four office floors already dedicated to accommodating the space requirement of our 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,” Kovács said. Gábor Pető, real estate financing director of UniCredit Bank Hungary, added: “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 co-operations, Szervita Square is our third project with Horizon Development.” Structural works on Szervita Square are expected to be completed in the first quarter of 2020, and the fit-out is scheduled to be concluded the fourth quarter of 2020.
Spaces is planning to open its first non - workspace office in Hungary in early 2020 . The company has signed a pre - lease on 8,500 sqm of the Szervita Square mixed - use complex being developed by Horizon Development . Spaces will lease all of the office space in the property , in Budapest 's central District V.