Tailor-made leases are essential in both the office and retail segments in Hungary too. Property Forum asked Mátyás Gereben, Country Manager of CPI Hungary about the relevant plans of the leading landlord and developer.
CPIPG announced a disposal pipeline last August exceeding €2 billion to be executed over the following 12 to 24 months. Does it affect any assets in Hungary?
We have received no direct request from our HQ in Prague to dispose of any of the Hungarian assets. In case an investor approaches us with a potential interest related to some of our Budapest-based assets, we are open to examining the opportunity of disposal.
At least half of the experts say that classic office developments are gone for the next decade. Refurbishments will step in as a profit-making chance. Do you agree with that?
I agree 100%. The era of new office developments has passed in my opinion and it is our responsibility to think about refurbishment and redevelopment as a sustainable approach to determine the future utilization of offices.
As one of the biggest landlords do you feel more pressure from tenants to give more incentives to retain them in the properties managed by CPI Hungary?
The office market is hardening due to the more challenging economic environment and tenants would like to have the maximum amount of flexibility and various type of incentives to decrease their risk related to their property solutions. As such we have to deal on a tenant-by-tenant basis with how we can find a leasing solution which is beneficial for both parties.
What do you do to reach a much higher share of green leases across your portfolio in Hungary?
CPI Hungary has introduced a measurable green lease concept to its tenants, which involves obligations and benefits for sustainably active occupiers. With this, we hope to reach our sustainability goals which are set out in the company’s global sustainability framework guidelines.
Retail parks are relative winners of the past 3-4 years. Do you see any chance to extend your portfolio of Stop Shops over the next 2-3 years in Hungary?
We are working on it. CPI Hungary has some potential land banks suitable for retail park development and those are the subjects of closer scrutiny.
Tell us about the first results of the closest-ever cooperation between Immofinanz and S Immo announced in January 2023.
It is an immense opportunity for the Group and also for CPI Hungary to work with such a diverse real estate portfolio. We can offer a much wider range of locations and services to our tenants with which we are hoping to widen our customer base as well. Integrating companies with different backgrounds is always a challenge but synergies will result in getting huge benefits in the long run.