Professional Practice Building Surveyors contribution

Content The site from our perspective –Characteristics and constraints of site Access Infrastructure Contamination Foundations The Vituki building –Current condition Main findings Photos –Options for this building Buy Refurbish Demolish –Implications for each of these Our recommendation The new buildings –Construction Concrete frame – reasons for this Height restrictions Trees

The Duna Site –Site located in busy part of Budapest, the ninth district now considered to be close to the heart of the city –Walking distance of major developments University New Theatre –Good infrastructure already exists Roads Bridge linking sides of river Tram line close by –Naturally, the site has advantages and dis- advantages…

The site Past use –Cemex Cement works Contamination –No evidence of land contamination found Foundations for new buildings –Piled foundations (heavy point loads of the structure, high water table) –Underground Parking (deep basement excavations) –Top down construction

The Vituki building Constructed/Completed in 1977 – Now over 30 years old Structural concrete frame structure with reinforced concrete clad panels forming an external skin 15 storeys high Commercial office space – original purpose Current condition is showing age Freehold remains with previous site owners – Cemex cement

Current Situation Owned by Cemex – currently leased to Wing Acts as a HQ for the proposed development Consider this to be an excellent arrangement –On site security –Communication hub of the site –Recommend space be made available for sales and marketing for the elements of the development

Options Ownership to remain with Cemex? –Uncertainty over buildings future if this is the case –How these will subsequently effect the site Purchase from Cemex - Possibilities –Refurbish – Commercial office space? Cost of £4.7million –Demolish – Make space for new buildings? Cost of £450K approx (£5.8million purchase, demolish & rebuild) + Height restrictions with new build – less gross floor space –Other options – Residential usage? Similar spec to commercial use

Technical Due Diligence Report Main findings –Building in poor condition internally and externally –Existing concrete frame considered to be sound condition –Extensive improvements need to be made to: Building services - inadequate Fire regulations Windows Décor throughout External Wall system –Building valued at £2.1million. Refurbishment £2.6million

Our recommendation Make an effort to do something with the building – protect the interests of the new development. 23.4% more to demolish and construct new building, instead of refurbishment, –BUT height restriction and allowance for new services would mean a new building would have less gross floor space, subsequently creating less revenue Never be class A office stock, therefore… Convert to student accommodation PLAN A - Encourage investment from outside developer –Offer to fund part of the refurbishment work an investment to protect the interests of the new development Proportionate return on investment through rent PLAN B - Alternatively, purchase and fund the refurbishment Do this early on, to provide a stream of income for the rest of the development

New Buildings Concrete frame construction –Fire regulations in Budapest are too stringent for steel frame –Height restriction in Budapest Steel not needed, concrete adequate –Concrete can be produced in Budapest Good for local economy Low carbon footprint (transportation) Cheaper Does not have to be imported

Conclusion Good site in excellent location Minor implications but nothing impossible Ensure that a plan is in place for Vituki in the interests of the rest of the development –Aesthetics –Detracting from prestige of the new site