After a brief development period, involving a change of function, on the slopes of the prestigious Gellért Hill in Buda’s vibrant university district, the Móricz Student Living student residence and office building will welcome international students this autumn already.
The building was acquired in June 2024 by Recorde Forestay Residence Real Estate Fund, managed by Recorde Asset Management, the real estate fund management arm of Concorde Group, in close strategic cooperation with Forestay Group acting as co-investor and development manager. The acquisition and refurbishment are financed by a loan provided by the Austrian HYPO BANK NOE AG. Taylor Wessing Budapest and Kálmán & Partners have acted as transaction and corporate legal advisers.
The student hotel concept is an innovative approach to real estate development that reflects the continuously rising number of international students in Budapest, as well as the growing touristic demand, therefore Recorde and Forestay have been actively seeking a project suitable for a similar repurposing for a long time.
This development fits perfectly into Recorde’s profile as a Pan-European club-deal syndication platform to connect seasoned real estate developers with a proven track record with institutional and HNW investors, raising (mostly mezzanine) equity in truly flexible, single-project fund structures.
The partnership with Forestay Group, specialists in hospitality real estate development, is a natural match, as they also successfully manage the 418-room Dean’s Home Budapest, a multiple award-winning purpose-built student accommodation in Budapest. Horsens Partners, also part of the Forestay Group, has been contracted as GC and is responsible for the construction and fitout.
Under the development concept, the 15.440 sqm building is undergoing a partial internal renovation under the professional supervision of Forestay. The central location with excellent transportation links and the proximity to several universities will greatly support the leasing of the 72 doubles for longer-term stays, as well as the traditional shorter-term rentals of a few guest nights. The dormitory will offer additional study and relaxation rooms and a laundry room. The other functions (offices, meeting/conference rooms, large auditoriums, catering facilities) currently present in the building will be retained and the student accommodation will be integrated into this existing scheme. The building will also provide 48 underground parking spaces.
The Móricz Student Living will open its doors to guests on 15 September 2024 and will be operated and managed by Forestay Group.
With this fund, Recorde Asset Management aims to create value in a new segment, not only for its investors but also for the wider neighbourhood and tenants of the property, trusting that many will enjoy the building post-renovation.
