CEE Legal Matters

Category: Hungary

  • Oppenheim and Ormos Advise on Lease of Skanska Mill Park Space to IT Services Hungary

    Oppenheim and Ormos Advise on Lease of Skanska Mill Park Space to IT Services Hungary

    Oppenheim has advised Skanska on its December 2016 agreement to lease a 17,300 square meter space in its Mill Park complex in Budapest to IT Services Hungary, the largest ICT employer of Hungary, starting in Q2 2018. The Ormos Law Firm advised ICT Services Hungary on the deal, which Oppenheim claims was “the second biggest office leasing transaction in Hungary in 2016.”

    Skanska’s Mill Park project, located in the 9th district of Budapest, will reportedly consist of two office buildings with a total leasable area of approximately 36,000 square meters. The office complex is already more than 70% leased. It will be delivered in two phases during 2018 and is expected to receive LEED Gold certification.

    The Oppenheim team was led by Partner Mark Pinter.

    The Ormos Law Firm team was led by Gabor Szelenyi.

    Image Source: group.skanska.com

  • Weil Advises MOL on Acquisition of OT Industries Group

    Weil Advises MOL on Acquisition of OT Industries Group

    Weil has represented MOL in its acquisition of a majority interest in the OT Industries Group, which Weil describes as “a key market participant of the Central and Eastern European oil and gas industry with its main profile in EPC (Engineering, Procurement, Construction) project implementation.”

    The transaction, which also involved a joint venture arrangement between MOL and the minority shareholder, closed on January 31, 2017.

    Weil’s Budapest team includes Partner Konrad Siegler, M&A Counsel Pal Szabo, and Associates Daria Szabo and Daniel Racz. Competition advice was provided by Special Counsel Laszlo Zlatarov.

    When contacted by CEE Legal Matters, Weil explained that, following the instructions of MOL, it was unable to provide any additional information on the matter.

  • CMS and Dentons Advise on Sale of Sasad Resort Project in Budapest

    CMS and Dentons Advise on Sale of Sasad Resort Project in Budapest

    CMS has advised Futureal, Hungary’s largest real-estate developer, on its acquisition of the Sasad Resort residential development in the Buda hills area of Budapest from GTC. Dentons advised the sellers on the deal.

    Cordia, a Futureal subsidiary, intends to develop 850 homes in Budapest after buying the plots next to the already completed three phases of the Sasad Resort project, in a development originally started by GTC Hungary. Cordia will now invest approximately EUR 140 million in continuing the development, including the purchase of the plots.

    Besides the homes, plans also include an 8,000 square-meter private leisure park and an office building. The project is expected to be completed in six phases by 2021.

    “Sasad Resort is an important part of Cordia’s massive development roll-out, which will see the completion of over 1,000 new apartments per year in Budapest,” said Gabor Futo, President and Founder of the Futureal Group. “During the project, we will cooperate with over 100 subcontractors, creating hundreds of new jobs. The residential buildings will be designed by highly acclaimed KOZTI Architects & Engineers and 4D Architect Studio – KOZTI also worked on the previous phases.”

    “As GTC is no longer involved with residential development projects, we are delighted that the continuation of further development phases of the Sasad Resort is in the good hands of Cordia, who we know are offering a high-quality product,” said Robert Snow, CEO of GTC Hungary.

    The CMS team assisting Futureal included Partner Gabor Czike, Senior Counsel Jozsef Varady, and Associate Zsofia Zsurzsa.

    The Dentons team advising GTC included Partner Judit Kovari and Counsel Adam Kaplonyi.

  • Tax Amnesty and Changes Relating to Offshore Companies in Hungary

    An amendment concerning offshore companies was adopted by the Hungarian Parliament at the end of 2016, introducing a new tax amnesty and modifying the regulations on foreign companies owned by Hungarian individuals.

    According to the new provisions, an amnesty can be applicable for capital income earned until 30 June 2016, by using a preferential tax rate of 10% plus the related self-revision surcharge. Furthermore, until 30 June 2017 individuals can acquire all shares that foreign entities have held in Hungarian companies in favour of such individuals without any penalty, sanction or tax liability. However, such transfers must be reported to the Hungarian tax authority. 

    Under the new rules, in order for a company to be qualified as a ‘controlled foreign company’ (i. e. offshore company), the individual shall have more than 50% ownership in the company, instead of the previous 10%. In addition, the company has ‘offshore’ status only if the amount of the corporate income tax paid by the foreign company is less than half of the amount that the company would pay in Hungary.

    According to the revised Personal Income Tax Act, the tax burden of the income arising from a low tax-rate state remains 33%, however, contrary to the previous rules, the tax becomes due only when the dividend is paid to the individual. Another novelty is that if such state has a tax convention with Hungary, this rule shall not applicable.  

    By Eszter Kamocsay-Berta, Partner, KCG Partners Law Firm

  • CHSH Dezso & Partners Successful for Domper Kft. and Subterra a.s Before Hungarian Competition Authority

    CHSH Dezso & Partners Successful for Domper Kft. and Subterra a.s Before Hungarian Competition Authority

    CHSH Dezso & Partners has advised Domper Kft. and Subterra a.s. in an investigation launched by the Hungarian Competition Authority concerning an an alleged restrictive agreements involving the construction of Hungary’s M4 motorway.

    According to CHSH, “the HCA suspected that the tenderers acted in concert during the relevant public procurement procedure in order to restrict competition.” The firm reported that “the HCA had to accept [Domper and Subterra’s] arguments and conceded that its suspicion was completely unfounded.”

    “We are pleased that we had the opportunity to assist our clients in the construction industry in the M4 cartel case. It is very important for us that we successfully assisted our clients, who won their contracts in a fair competition, in clearing themselves of the charges brought against them” said Tamas Polauf, Co-Managing Partner of CHSH Dezso & Partners, who led the firm’s team on the matter, supported by Senior Attorney Marton Kocsis and Associate Zoltan Kolodzey.

  • PSA Insurance Hires Javorszki as Head of Legal

    PSA Insurance Hires Javorszki as Head of Legal

    Hungarian lawyer Gergely Javorszki has joined PSA Insurance – PSA Groupe in Malta this January as its new Head of Legal. 

    Prior to the move, Javorszki worked as a Senior Legal Counsel for Europ Assistance Hungary for over three and a half years. Before that, he worked for AXA Hungary Insurance from December 2008 to August 2013. Starting in February 2010 he also acted as a Legal Counsel for AXA Health Fund. On August 2012 he was also appointed the AXA Hungary Insurance Compliance Officer.

    Earlier still, from June 2006 to December 2008, Javorszki worked as a Legal Counsel for Betonut in Budapest.

  • Jeantet and CMS Advise on Group Accor Acquisition of Five Budapest Hotels

    Jeantet and CMS Advise on Group Accor Acquisition of Five Budapest Hotels

    Jeantet has advised listed hotels group Orbis, a unit of the French group Accor, in a buyback transaction involving five hotels in downtown Budapest operating under Accor brands from Erste Group Immorent Holding GmbH. CMS advised Erste Group Immorent on the deal. The aggregate price for the acquisition of the five hotels was EUR 64.3 million.

    The deal encompasses the Mercure Budapest Korona, Ibis Styles Budapest Center, Ibis Budapest City, Ibis Budapest Centrum, and Mercure Budapest Buda.

    The Jeantet team was led by Partner François d’Ornano and included Local Partner Ioana Knoll-Tudor and Associates Anna-Maria Veres and Blanka Borzsonyi. 

    The CMS team consisted of Senior Counsel Jozsef Varady and Associate Zsofia Zsurzsa.

    Image Source: ibis.com

  • New Managing Partner at Sar and Partners

    New Managing Partner at Sar and Partners

    Ildiko Komor Hennel has become Managing Partner of Sar and Partners in Hungary.

    Hennel joined Sar & Partners in 2000, becoming a Partner in 2003. According to the firm, “she has special expertise in providing legal representation in complex lawsuits related to infringement of intellectual property rights.”

    “With the joys of this position also comes a significantly larger workload as well as responsibility,” said Hennel, in a statement released by the firm. “We seek to continue our journey on which we have endeavored last year, along which new members have already joined the firm’s team of experts bringing valuable knowledge with them, and we shall continue to pay close attention to the latest market trends affecting both domestic and international intellectual property matters. We continuously strive towards constant innovation in our professional fields as well as in the field of academics, a part of which is our lecturer’s agreement with the Law Faculty of the University of Szeged. However, our top priorities remain unchanged: the appreciation of our clients and the representation of their interests by the highest professional standards achievable.” 

  • New Act on Statistics in Hungary

    A new Hungarian act on statistics repealing and replacing the former act on statistics entered into force on 1 January 2017. The adoption of the new act became necessary due to the modification of the relevant EU directives. 

    The new act is intended to strengthen both the professional and institutional independence of the Hungarian Central Statistical Office and the powers of its president. According to the new act, no other laws or legal instruments shall infringe the independence of the Central Statistics Office and its president may not be instructed in the course of performing his duties. The new act also contains provisions relating to the use of data acquired from the public administration for statistical purposes. In this respect, the act provides several legal guarantees and assurances to ensure the adequate level of data protection.

    The EU rules require the statistical offices of the Member States to coordinate the official statistical activities at national level. In line with this requirement, it is stated in the act that the president of the Central Statistics Office is obliged to coordinate the statistical activities of the institutions concerned and he is entitled to issue guidelines and to monitor the implementation thereof.

    The new act also aims at improving confidence in the official statistics, as its purpose is to unify and clarify the statistical processes. The new act reinforces the impartiality and objectivity of the official statistics and also promotes the efficient operation of the Central Statistics Office.  

    By Rita Parkanyi, Attorney-at-Law, KCG Partners Law Firm

  • Strike! Law Firms Compete in First-Ever CEELM Budapest Law Firm Bowling Challenge

    Strike! Law Firms Compete in First-Ever CEELM Budapest Law Firm Bowling Challenge

    On the evening of February 1, 2017, CEE Legal Matters hosted the first ever CEELM Budapest Law Firm Bowling Challenge: A competition of four-person teams from leading law firms in Hungary, with all proceeds to go to the winner’s charity of choice. A total of 13 law firms competed for the impressive trophy – and the glory that goes along with it.

    Ultimately, after several hours of grueling and demanding competition, CMS slipped past second-place Szecsenyi and Partners by a small margin to achieve the highest total score – 852 – and claim the trophy. As a result, CMS-nominated Red Nose Clown Doctors Foundation in Hungary will receive the EUR 2,400 raised during the evening, with the donation made in the name of CMS and all the law firms attending the challenge. “CMS has been supporting the Red Noses Foundation for long years. Simply all of our colleagues stand for the foundation’s goals and activities and we try to take every opportunity to contribute and bring a bit more laughter to children hospitals or nursing homes,” said Katalin Kovacs of CMS to explain their pick.

    In addition to CMS and Szecsenyi and Partners, participants included teams from Allen & Overy; Dentons; DLA Piper; Gardos, Furedi, Mosonyi, Tomori; Hogan Lovells; Jeantet; KNP Law; Nagy & Trocsanyi; Lakatos, Koves & Partners; Orban & Perlaki Attorneys; and Schoenherr.

    Among women, Zsuzsanna Gordos from Jeantet recorded the highest one-game total, with 115 points, while the highest score by a man, of 152, was recorded by Miklos Horvath from DLA Piper.

    This was a great night of laughter, competition, and good fun, all for a good cause. We are grateful for all the teams for their support and enthusiasm to make this initiative happen.