Updated: Mini-Dubai: Budapest Can't Exercise Its Pre-Emption Right At Rakosrendezo

  • 24 Jan 2025 8:28 AM
Updated: Mini-Dubai: Budapest Can't Exercise Its Pre-Emption Right At Rakosrendezo
Real estate around the Rakosrendező train station in Budapest may only be sold to a buyer designated by the the United Arab Emirates, with the prior consent of the government, according to an intergovernmental economic cooperation agreement promulgated in 2024, the Hungarian National Asset Management Company (MNV) said.

Any pre-emption right may only be exercised if the party that holds such a right fulfills all of the conditions in a purchase agreement signed on January 16 by MNV, on behalf of the state of Hungary, and the buyer, UAE developer Eagle Hills Hungary, MNV said.

On Tuesday, Budapest Mayor Gergely Karacsony said the city's utilities company would exercise its pre-emption right for the derelict area which is set to undergo a major rehabilitation.

In a message posted on social media on Wednesday, National Economy Minister Marton Nagy said the capital could not exercise its pre-emption right because of the UAE's right to designate the buyer and called out the mayor for "political agitation".

He added that the mayor might see the benefits of the rehabilitation project in terms of job creation, the boon for the construction sector and the power to draw tourists, if he would look beyond "the goals of party politics and his own political survival".

Rakosrendezo brownfield site may only be sold to designated buyer - MNV

Real estate around the Rakosrendezo train station in Budapest may only be sold to a buyer designated by the the United Arab Emirates, with the prior consent of the government, according to an intergovernmental economic cooperation agreement promulgated in 2024, the Hungarian National Asset Management Company (MNV) said on Wednesday.

Any pre-emption right may only be exercised if the party that holds such a right fulfills all of the conditions in a purchase agreement signed on January 16 by MNV, on behalf of the state of Hungary, and the buyer, UAE developer Eagle Hills Hungary, MNV said.

On Tuesday, Budapest Mayor Gergely Karacsony said the city's utilities company would exercise its pre-emption right for the derelict area which is set to undergo a major rehabilitation.

In a message posted on social media on Wednesday, National Economy Minister Marton Nagy said the capital could not exercise its pre-emption right because of the UAE's right to designate the buyer and called out the mayor for "political agitation".

He added that the mayor might see the benefits of the rehabilitation project in terms of job creation, the boon for the construction sector and the power to draw tourists, if he would look beyond "the goals of party politics and his own political survival".

Source: 
MTI - The Hungarian News Agency, founded in 1881.

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