Taylor Wessing advises on major student accommodation project in Budapest

International law firm Taylor Wessing has guided Recorde Asset Management and Forestay Group through the acquisition of a building in Budapest’s prestigious Gellért Hill area. Following renovation, the property will be transformed into the Móricz Student Living residence and office building. Taylor Wessing’s Budapest office acted as the transaction and corporate legal adviser for this significant project.

In June 2024, the Recorde Forestay Residence Real Estate Fund, managed by Recorde Asset Management of the Concorde Group, acquired the building in a strategic partnership with Forestay Group, who will oversee the development. The acquisition and refurbishment are financed by a loan from Austrian bank HYPO BANK NOE AG, with Taylor Wessing Budapest and Kálmán & Partners providing legal counsel.

The legal team from Taylor Wessing was led by Partner Dániel Ódor and Senior Associate Kinga Harza, with support from Associates Petra Szőke and Adél Kovács.

“Taylor Wessing has been actively involved in the PBSA (Purpose Built Student Accommodation) segment in Central and Eastern Europe for many years. The Budapest market has seen few projects of this kind, making us particularly excited and proud to participate in this landmark deal. The segment has significant untapped potential, and we hope more visionary investors recognize this,” said Dániel Ódor, Partner and Head of Real Estate at Taylor Wessing Budapest.

The firm has also published an overview of the regulatory framework for developing and operating student housing and co-living spaces in several Central European countries, including Austria, the Czech Republic, Hungary, Poland, and Slovakia.

Set to open on September 15, 2024, the Móricz Student Living project aims to accommodate the growing number of international students and tourists in Budapest. Recorde and Forestay had been on the lookout for a suitable project to fulfill this need for some time.

The 15,440 sqm building is undergoing partial internal renovations supervised by Forestay. It will feature 72 double rooms for long-term stays and traditional short-term rentals, along with 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, all managed by Forestay Group.