Miller Developments - Retail Development - Hungary, Budapest Outlet Center
Date: 10 Jun 2004
Miller Developments, in its joint venture with Raiffeisen Ingatlan, has appointed GVA Grimley Outlet Services to operate its retail development scheme, the Budapest Outlet Center, Hungary. The leasing of the center is also being managed by GVA, through its partner GVA Hungary.
GVA Grimley Outlet Services is a specialist division of the international property adviser GVA Grimley, specializing in the establishment and operation of outlet centres.
The Budapest Outlet Center totals 16.2-hectare (40-acre) and is located approximately 15 minutes drive south west of Budapest's city center in Biatorbagy, at the junction of the M1 and M0 motorways.
József Takács, the Raiffeisen Ingatlan director in charge of the Budapest Outlet Center project, says: "Many major brands are interested in this business-opportunity. Nike has already publicly announced its intention to open a 900 sq m unit in the Miller / Raiffeisen scheme, with other high-profile tenants such as Tom Tailor, Camel Active, Mexx, Fila, Levi's Dockers, Budmil and Vans coming on board as well."
"We have four years of experience in operating retail developments so we can accurately predict what the Hungarian consumers expect from this upcoming facility. The 900-car parking lot is ready to welcome our patrons. It takes 15-30 minutes to travel to the Budapest Outlet Center from the centre of the capital. In order to provide a full service to our customers, we are building a children's play area and food court within the center."
Brendon O'Reilly, a GVA Grimley Outlet Services partner, comments: "Consumer expenditure on clothing in Hungary has increased by over 30% across the past 3 years and the nearby Budapest fashion market is particularly sophisticated, as evidenced by the high standard of city center shopping malls which have opened in the last couple of years."
"The Hungarian consumer will be expecting high quality branded stores at the new Center, and GVA's international reputation and relationships with the principal brand owners in the international Outlet sector will be an important part of the appeal of the Raiffeisen / Miller Developments site. We are confident that this will be the Outlet Center with the best line-up of quality brands in the fields of apparel, sportswear and accessories."
Raiffeisen Ingatlan is the latest member of the Hungarian Raiffeisen Group, Raiffeisen Real Estate Management Rt. (REM), founded in December 2000. REM is the affiliated company of Raiffeisen Bank, specialising in mid- and long-term property project financing and tailor-made property developments.
In order to offer a greater service for its partners, REM launched its facility management activity in 2002, focusing on tenant, technical and financial management. Its goal is to provide a service that guarantees the client increasing property value with minimal fuss and optimal operation.
András Makó, director of REM Facility Management division says: "This objective can only be met if high-level technical operation is in synergy with optimal economic utilisation."
"According to our philosophy the facility provider can only carry out customer-oriented services flawlessly if both the property owner and the tenant are looked at as customers, and settlement of conflicts can be guaranteed. Facility management allows the Raiffeisen Banking Group to provide a regular high level of service. We hold a full-scale ISO 9001 standard quality assurance certificate as evidence of this."
REM is the main partner of Raiffeisen Funds in the field of operation. The Raiffeisen Real Estate Fund, which was established in October 2002, achieved a result of 12.95% yield and a 30% market share after just 18 months of operation. In 2004 Raiffeisen Funds managed 19 billion HUF assets, leaving them the incontestable leader of the local market. Its 50,000 sq m real estate portfolio is utilized one hundred percent and run by first class tenants, with an average lease agreement duration of over 7.5 years.
András Makó adds: "Whenever a new real estate is targeted by Raiffeisen Funds, an important consideration is the operational analysis. It's useless to say that the profitability of a real estate is highly dependable on the operational costs. So the question is always the same: Can we run the business more cost effectively? According to our experience the answer is yes, we can. After just two years in business we achieved an average of 18% cost reduction within the operated estates."
The Budapest Outlet Center will open on 28 October this year.
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