The Budapest Council Hopes to Sell Dozens of Real Estate Properties Including Three Castles (Hungary)
Recent reports indicate that the Budapest Council hopes to sell dozens of its real estate properties. Some of these will be harder to sell than others, as three of the properties are castles.
The Budapest local government owns various properties. Pro-government media has reported that Budapest Lord Mayor Gergely Karácsony wants to sell three of the castles.
Karácsony reportedly intends to sell 72 real estate properties, including three castles. The castles are in Kéthely, Tokod, and Szőlőskert. These castles previously were classified as protected monuments, but they are now eligible for sale.
Supporters of the move hope to raise HUF 8.2 billion (22.27 million euros) from the sale of the 72 properties.
This report comes from Metropol.hu. It says that the plan involves Budapest Fővárosi Vagyonkezelő Központ Zrt. (BFVK Zrt.). The real estate management firm hopes to sell 43 buildings, which include the three castles and two buildings that are part of schools.
News of the plans to sell the properties came out earlier in the year. Reports also indicated that the intention was to sell all of the 72 properties within 2021.
It Is Similar to Previous Plans
The idea of selling these properties is not anything new, as previous leaderships have also wanted to sell these foundation assets instead of continuing their management. Additionally, Metropol.hu reports that the Fidesz leadership before the current one in Budapest also wanted to profit from these assets but with slightly different tax planning.
That government hoped to rent the castles in the long term. They were hoping to do so for 50 to 100 years. The idea would be that the renters could refresh and care for the properties. They hoped the idea would appeal to entities in search of conference centers or hotels as opposed to residencies or trusts.
Before the Fidesz leadership that wanted to rent out the properties, the previous left-liberal leadership had wanted to sell the properties. However, they could not find someone to buy the properties and act as the director or manager.
About the Castles
The castles would require more than the initial investment for any shareholders or private equity funds that buy them. They are all in poor condition and described as “deteriorating.” Additionally, only one of the three castles is currently guarded.
To make the process even more challenging for any buyer, the castles are still protected monuments. That limits the types of repairs that can be made. There are specific regulations to follow by the fiduciary company or individual who’d buy the properties.
The information on the current state of the castles comes from Ripost7, a pro-government media source whose editorial team visited the properties.
This castle is close to Marcali and in Somogy County. It has no obvious security. There are large holes in the walls, giving easy access to anyone who wants to enter it, regardless of their intentions. According to Ripost7, the interior is mostly empty. This property sits on 116,583 square meters of land, and the castle covers 3,668 square meters. The castle was built in 1760.
This castle is in Tordas in Fejer County and dates back to the 17th century. The castle itself is 2,517 square meters, sitting on 33,702 square meters of forest and 20,443 square meters of castle garden.
This castle is in Szőlősgyörök and dates back to 1752. The castle itself is 1,263 square meters, and there are 17 hectares of park along with a 120-square-foot church.
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