International law firm Taylor Wessing has advised Recorde Asset Management and Forestay Group on the acquisition of a building in Budapest’s prestigious Gellért Hill area which after renovation will become the Móricz Student Living student residence and office building. The Budapest office of Taylor Wessing acted as transaction and corporate legal adviser.
The Recorde Forestay Residence Real Estate Fund, managed by Recorde Asset Management of the Concorde Group, acquired a building in June 2024 in strategic partnership with Forestay Group, who will also manage the development. Financing for the acquisition and refurbishment was secured through a loan from Austrian bank HYPO BANK NOE AG, with Taylor Wessing Budapest and Kálmán & Partners providing legal advice.
The Taylor Wessing team was led by Partner Dániel Ódor and Senior Associate Kinga Harza. They were assisted by Associates Petra Szőke and Adél Kovács.
“Taylor Wessing has been active in the PBSA (Purpose Built Student Accommodation) segment in Central and Eastern Europe for many years. The Budapest market has not yet seen many project of this kind, so we’re especially excited and proud to have been involved in this landmark deal. The segment possesses a huge untapped potential and we hope that more visionary investors recognised this,” comments Dániel Ódor, Partner and Head of Real Estate at Taylor Wessing Budapest.
The firm has recently published an overview of the regulatory framework surrounding the development and operation of student housing and co-living in a number of Central European countries - Austria, the Czech Republic, Hungary, Poland and Slovakia.
The Móricz Student Living project, which is set to open on 15 September 2024, aims to address the increasing number of international students and tourists in Budapest by creating an innovative student hotel. Recorde and Forestay had been seeking a suitable project for this purpose for some time.
The 15,440 sqm building is undergoing partial internal renovation supervised by Forestay. It will include 72 double rooms for long-term stays and traditional short-term rentals. The dormitory will include study and relaxation areas and a laundry room. Existing offices, meeting rooms, auditoriums, and catering facilities will be retained, and 48 underground parking spaces will be available., and will be managed by Forestay Group.
