PALATINE CITYTHE NEW GATEWAY TO GYŐR

PALATINE CITYTHE NEW GATEWAY TO GYŐR

6. Overview of Centrope & the region of Győr

8. The future is being built in Győr 11. Area Site in Győr

12. Description of the area

14. Outline of development options within the catchment area

16. Potential development of the area

20. Key economic figures of Győr region

24. Future trends

26. Conclusion

Investing in Győr, one of the main towns of Centrope, means investing in the long term potential of central Europe.

Most Important investments within the Győr region

+ Audi (Germany) Engel Group (Israel) Doxeon (Cyprus) Leier (Austria) Interbonum (Germany) Alphapark (Austria) Proventha (Germany) Ritofrank (Germany) Prologis (USA), ECE Project Management (Germany).

+ The importance of Győr is linked within the framework of the region of Centrope including the cities of Vienna, Bratislava and Győr.

+ The Centrope region is considered the economic hubs of their respective countries in terms of business activity and development, and have a history of outperforming the EU average in growth. Due to its location, Centrope benefits strongly from its positioning as a gateway between EU markets with high purchasing power and the dynamic markets of younger and aspiring EU member states within central and eastern Europe. The general competitiveness of the region is set to improve further, thereby strengthening Centrope as an attractive business location.

Overview of Centrope & the region of Győr

6

4

7

547

10

M15

M1 M3

M0

M9

M5

M13M6

M60

M9

M9

M8

M86M0M10

M2M25

M30

M3M49

M4 M4

M44

M8M9

M3

M35

M7

SLOVAKIA

BratislavaWien

Zagreb

UKRAINE

ROMANIA

SERBIA

CROATIA

SLOVENIA

AUSTRIA

Budapest

INFRASTRUCTTURE

COMMERCIAL CORRIDORS

+ The most intensive growth, however, was induced by the machinery sector including automotive industry, resulting from the large scale investment of the Audi company, which encouraged other related firms to establish a presence.

The future

Why should companies choose Győr? is being built in Győr

+ In the two decades following the systemic economic and political changes in Hungary, the economic structure of the city transformed. Győr was always considered a wealthy part of the country, given its western orientation and location, with a diverse number of light industry (textile and food processing). However, this segment declined or even ceased to exist during several periods. However, new sectors within commerce and financial services began to replace former industries. These new segments were reinforced by the rapid expansion of the commercial, banking and insurance networks.

8

+ „The future is being built in Győr”, is the moto of the city, which demon-strates their belief and strengths of Győr and an image they want to portray to others. The county seat of Kisalföld (small plain) has become the most dynamically developing and innovative city in Hungary, with a solid financial background, well qualified market- oriented labour force and a stable economic environment that supports these enterprises.

+ The geographical location of Győr is advantageous being on the Vienna–Bratislava–Budapest innovation axis and conveniently halfway between Vienna and Budapest. In addition, its well serviced and connected within the Vienna- Budapest international railway line.

+ The river port of Gönyü located 20 kilometres away allows access to the city via a port linked to sea waterway.

+ A number of international airports provide an air link to the city, with Budapest 130 kilometres, Vienna-Schwechat airport 90 kilometres, and Bratislava airport is only 60 kilometres from Győr. In Pér, which is only 15 kilometres from Győr, there is a small airport suitable for aircrafts of up to 75 passengers.

BRATISLAVA80 km55 min

BUDAPEST130 km75 min

VIENNA120 km

70 min

GYŐR

+ Győr is Hungary’s second wealthiest town, in terms economic and historic buildings after Budapest. Győr was presented with an European award for the protection of historic buildings, in acknowledgement of the reconstruction of the Baroque old town centre. The palaces, museums, characteristic corner-balconies and narrow lanes are all reminders of a historic past.

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WIEN

BUDAPEST

Baross G. u.Nagy Im

re u.

Szigethy Attila u.

Szent István u.

Fehérvári u.

Jereváni u.

CITY Centrewalking area

1 km distance

PALATINE CITYDEVELOPMENT

Area Site in Győr 11

12NORD

Mester u.

The Land Site

Attila u. Szabolcska u.

TihanyiÁrpád u.

13

cadastrian N

4567/4

4567/12and 4567/18

m2

22 90114 190

5103 3581 1403 653

2528560

60

28 53419 279

1 36012 590

4 740330259

LAND AREABUILDING

Office building

WorkshopDeposits

Wastewater treatment buildingPlant buildingsTransformator

LAND AREABUILDING

Office buildingPanital buildingsTintoria buildingLa torre buildingTransformator

TOTAL LAND AREATOTAL BUILDING AREA

51 435 m2

33 469 m2

Descriptionof the Area

Outline of development optionswithin the catchment area

Actual Definition of the Area 00355* GIPE 10/K/K/K-/140/04-/K = OTHER INDUSTRIAL AREA

LIMITATION. On the front of Tihany Arpad and Mester utca in between of a width of 30 meters is only allowed to build a maximum 2 floor and maximum height of 9 meters building. It is possible to enlarge the surface of the building only taking in consideration an increase of parking spaces according to the national ruling prescription. The green zones of the area could be eliminated only if the same green area can be replaced somewhere else inside the limit of the property. The actual result of building intensity is 65%.

15BUILDING AROUND THE AREA

GKSZ COMMERCIAL AND SERVICES AREALKE

GARDEN TOWN LIKERESIDENTIAL AREA

LKEVILLAGE LIKE RESIDENTIAL AREA

KOK EDUCATION CENTRE AREA

Potential developmentof the area

THE CURRENT POSSIBLITIES IN ACCORDANCE WITH THE CITIES MASTERPLAN

1) Educational centres 2) Health centres 3) Social use building 4) Up to 2500 sqm commercial

retail shops 5) Religious building

OPPORTUNITY TO MODIFY THE CURRENT RULES ON THE DESTINATION AREA

According to the actual and prospective situation of the market in Győr we consider the residential market as stagnant with no short term needs for significant development due to limited demand.

The change of destination that could provide the most viable opportunity is the conversion to a Lk („little town like residential area”).

*The actual ruling destination should be chancing the City’s master plan.

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THE OPPORTUNITIES OF DEVELOPMENT WITHIN AN „LK” AREA. IT IS POSSIBLE TO BUILD A STRUCTURE NO MORE THAN 9 METERS HIGH WITH NO MORE THAN TWO FLOORS

1) Services building linked with the concept of temporary offices, with a professional services

2) Restaurant building linked with the new presence of person in the area

3) Sport services building also because of a lack of big surface gym in the city centre of Győr

4) Educational buildings as in the actual destination with the same development opportunity

5) Health services buildings

AND IF THE DESTINATION DO NOT DISTURB THE NEARBY AREA IT IS POSSIBLE TO BUILD

1) Hotel 2) Administration centres (office) 3) Gas station

ENTERTAINMENT DISTRICTPart of the site could be dedicated towards a restaurant, café and bar district that will attract locals and patrons within the surrounding area of Győr.

PRIVATE HEALTH AND MEDICAL CENTREThere is a gap in the market for a private health and medical centre for the region. Within Centrope there is a growing number of potential patients with disposable income that can afford private care. However there is presently no offer on the market that could cater for general and day care services and dental within one building.

COMMERCIAL CENTREThere is also the potential market for a shopping destination attract-ing both independent and branded shops and services within a mod-ern industrial atmosphere. It would be the alternative place to the old town, but still located in the heart of the city. It would be a multi-pur-pose area not only for shopping, but also temporary offices, fitness and recreation and a family friendly atmosphere.

PRIVATE STUDENT CENTREThere is a lack of development of student services in Győr, including more superior accommodation and places for entertainment where stu-dents can spend their leisure time.

HOTELThere is an opportunity to convert part of an existing building infrastructure to an aparthotel for long-term stay, a serviced apartment concept that is not present in the town.

The current site provides an opportunity to “create” a new mixed-use destination in Győr. The current buildings could be utilised to convert the area according to the services and concepts that are in demand and appropriate for the site.

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ENTERTAINMENT DISTRICT

BARS RESTAURANTS

COMMERCIAL CentreOFFICESGYM CENTRERECREATION AREA

PRIVATE STUDENT Centre SUPERIOR SERVICES

LONG TERM ACCOMMODATIONFREE TIME OPPORTUNITIES

HOTELAPARTMENT HOTEL FOR LONG STAY

GAS STATIONCAR WASH

PRIVATE HEALTH AND MEDICAL CentreDENTAL AND GENERALHOSPITAL SERVICES

UNEM

PLOY

MEN

TIN

DUST

RIAL

OUT

PUT

AND

SALE

S18 000

13 000

17 000

12 000

16 000

11 000

8 000

15 000

10 000

7 000

14 000

9 000

6 000

120

110

100

70

140%

90

60

130

80

50

01. 03. 05. 07. 09. 11. 01. 03. 05. 07. 09. 11. 01. 03. 05. 07. 09. 11. 01. 03. 05. 07. 09. 11.

2010

2008

2011 2012 2013

01. 02. 03. 04.

200901. 02. 03. 04.

201001. 02. 03. 04.

201101. 02. 03. 04.

201201. 02. 03. 04.

201301. 02. 03. 04.

Industrial output

(source: KSH*, 2013 *Hungarian Central Statistical Office)

(source: KSH, 2013)

International sales

National sales

Key economic figures of Győr region

month / year

month / year

21

INVE

STM

ENT

PER

INH

ABIT

ANTS

2013

(K H

UF)

BUILT

HOM

ES A

NDGR

ANTE

D BU

ILDI

NG

PERM

ITS

700

3 500

600

3 000

500

2 500

200

1 000

900

400

2 000

100

500

800

4 000

300

1 500

0

0

Buda

pest

Hungayaverage

Győr

-Mos

on-S

opro

n

Kom

árom

-Esz

terg

om Vas

Fejé

r

Vesz

prém

Haj

dú-B

ihar

Cson

grád

Hev

es

Toln

a

Jász

-Nag

ykun

-Szo

lnok

Szab

olcs

-Sza

tmár

-Ber

eg

Bács

-Kis

kun

Béké

s

Bara

nya

Som

ogy

Pes

t

Zala

Bors

od-A

baúj

-Zem

plén

Nóg

rád

year

counties(source: KSH, 2013)

(source: KSH, 2013)

Build homes

Granted building permits

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

22

TOUR

ISM

DAT

A H

otel

nig

hts

(‘000

)H

OSPI

TALI

TY IN

DUST

RY

REVE

NUE

S (’0

00 H

UF)

70

60

50

20

90

40

10

80

30

0 month / year

01. 02. 03. 04. 05. 16. 07. 08. 09. 10. 11. 12. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12.

2012 2013

TYPE OF ACCOMMODATION

International National Total Average/room

3 883 252 2 831 788 6 715 040 4,8TOTAL

3 403 808 2 176 616 5 580 424 5,5Of those hotels

341 923 521 822 863 745 2,9Of those pensions

International sales

National sales

Percentage comparison on the previous year (%)

107,2 % 97,1 % 102,7 % 102,7 %

108,5 % 95,6 % 103,1 % 101,9 %

97,9 % 103,3 % 101,1 % 106,9 %

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(source: KSH, 2013)

(source: KSH, 2013)

European Youth Olimpics in 2017Large-scale investment projects can be expected before the commencement of the European Youth Olympic Festival to be held in Győr in 2017. Apart from the normal developments associated with holding an event of this nature, Győr’s city government is aiming to improve the energy infrastructure by rethinking energy processes, connecting energy production to a virtual power plant control system, organizing business and household consumers into a smart network.

The development of Audi In 2013, Audi completed the investment of a €900 million plant at its base in Győr that will turn out A3 sedan models. The car is the first Audi is making entirely in Hungary.

The Győr Airport and Harbour development The expansion of Győr-Pér Airport has begun: the project involves operation and development of aviation safety. After development has finished, Boeing737 and Airbus A320 planes will also be able to use the airport and this will enriches its infrastructural background and further expands Győr’s possibilities as a touristic destination.The Harbour is a combined logistic centre, where railway, water-way and roads meet 35 km far from the midpoint of Danube-Rhine-Main water-way.

Future trends25

Győr Due to the development path the city has taken over the past two decades following the systemic change – the city

has become the second largest in Hungary after Budapest in terms of economic competitiveness and industrial potential. The dominant factor in this economic development has been the automotive industry, but other industries have confirmed their commitment to the town. Its geographical location and transportation endowments are excellent, well developed infrastructure provides investors the opportunity to invest not only in a city but a region that is economically vibrant. The local government has an open and long term view in continuing to enhance the city and provide the support needed to influence new investors on their decision to locate their investment in Győr.

Palatine City

The current site that is for sale could be utilised to develop and transform this part of Győr into a new destination for mixed-use purposes. A place where inhabitants from the extended region (approx 500.000) could visit to shop, eat, stay and be entertained. There are a number of mixed-use purposes that could be created at Palatine City with a view in reducing investor risk and maximising returns.

Conclusion

ITL REAL ESTATE 1056 Budapest, Váci utca 81. s.schenk@itlgroup.hu or f.brilli@itlgroup.hu

For further information please take CONTACT

MITAL Kft9023 Győr, Tihanyi Árpád út 23.fbotto@bmm.itTel.: +36 96 388070

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CONTACTFor further information please take contact MITAL Kft: 9023 Győr, Tihanyi Árpád út 23., fbotto@bmm.it, Tel.: +36 96 388070ITL REAL ESTATE: 1056 Budapest, Váci utca 81., s.schenk@itlgroup.hu or f.brilli@itlgroup.hu

2014, Budapest, ITL Real Estate© PHOTOS: www.gyor2017.hu (Szalay Mona, O. Jakócs Péter)Palatine City, Shutterstock