Professional Practice

Building Surveyors contribution

Content• The site from our perspective

– Characteristics and constraints of site• Access• Infrastructure• Contamination• Foundations

• The Vituki building– Current condition

• Main findings• Photos

– Options for this building• Buy• Refurbish• Demolish

– Implications for each of these• Our recommendation

• The new buildings– Construction

• Concrete frame – reasons for this• Height restrictions• Trees

The Duna Site– Site located in busy part of

Budapest, the ninth district now considered to be close to the heart of the city

– Walking distance of major developments

• University• New Theatre

– Good infrastructure already exists

• Roads• Bridge linking sides of river• Tram line close by

– Naturally, the site has advantages and dis-advantages…

The site

• Past use– Cemex Cement works

• Contamination– No evidence of land contamination found

• Foundations for new buildings– Piled foundations (heavy point loads of the structure,

high water table)– Underground Parking (deep basement excavations)– Top down construction

The Vituki building• Constructed/Completed in 1977 –

Now over 30 years old• Structural concrete frame structure

with reinforced concrete clad panels forming an external skin

• 15 storeys high• Commercial office space – original

purpose• Current condition is showing age• Freehold remains with previous site

owners – Cemex cement

Current Situation

• Owned by Cemex – currently leased to Wing• Acts as a HQ for the proposed development• Consider this to be an excellent arrangement

– On site security– Communication hub of the site– Recommend space be made available for sales and

marketing for the elements of the development

Options

• Ownership to remain with Cemex?– Uncertainty over buildings future if this is the case– How these will subsequently effect the site

• Purchase from Cemex - Possibilities– Refurbish – Commercial office space?

• Cost of £4.7million

– Demolish – Make space for new buildings?• Cost of £450K approx (£5.8million purchase, demolish &

rebuild) + Height restrictions with new build – less gross floor space

– Other options – Residential usage?• Similar spec to commercial use

Technical Due Diligence Report

• Main findings– Building in poor condition internally and externally– Existing concrete frame considered to be sound

condition– Extensive improvements need to be made to:

• Building services - inadequate• Fire regulations• Windows• Décor throughout• External Wall system

– Building valued at £2.1million. Refurbishment £2.6million

Our recommendation• Make an effort to do something with the building – protect the

interests of the new development.• 23.4% more to demolish and construct new building, instead of

refurbishment, – BUT height restriction and allowance for new services would mean a

new building would have less gross floor space, subsequently creating less revenue

• Never be class A office stock, therefore…• Convert to student accommodation • PLAN A - Encourage investment from outside developer

– Offer to fund part of the refurbishment work• an investment to protect the interests of the new development• Proportionate return on investment through rent

• PLAN B - Alternatively, purchase and fund the refurbishment• Do this early on, to provide a stream of income for the rest of the

development

New Buildings

• Concrete frame construction– Fire regulations in Budapest are too stringent

for steel frame– Height restriction in Budapest

• Steel not needed, concrete adequate

– Concrete can be produced in Budapest• Good for local economy• Low carbon footprint (transportation)• Cheaper • Does not have to be imported

Conclusion

• Good site in excellent location

• Minor implications but nothing impossible

• Ensure that a plan is in place for Vituki in the interests of the rest of the development– Aesthetics– Detracting from prestige of the new site