RENT AFTER SALE

MÁV pays hundreds of millions to rent its former buildings. The Hungarian Railway Company has sold its two, very valuable office buildings to rent them back for years from the new owner, Magyar Nemzet has been informed.

MNO
2005. 05. 06. 10:01
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The rent of the buildings in downtown Budapest can cost the seriously indebted company several hundred million forints. The buildings in Andrássy road and Teréz boulevard have been sold for HUF 900 million and 1,7 billion respectively. The tender contained the option of renting the two buildings for 3+3 years, so the price will be repaid in instalments by the state company. MÁV is supervised by the Ministry of Economy and Transport and the minister, János Kóka was a business partner of Kristóf Nobilis, one of the winners of the tender. Mr Nobilis is on the list of the one hundred richest Hungarians.

The Hungarian Railway Company said to Magyar Nemzet the sale of the two buildings had been much over the market price. The method of re-renting has been a lucrative practice in the case of Premier Gyurcsány, too, whose Aldo Ltd bought the government resort house at Balatonőszöd in 1994 in instalments for ten years and which was re-rented by the Prime Minister’s Office. A similar method was used in the case of a real estate in Szalay street, in downtown Budapest which served as a Club for MPs, also re-rented by the Prime Minister’s Office.

Translated by Péter Szentmihályi Szabó

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