Budapest must secure HUF 30.5bn for Rákosrendező in 8 days: will it have the money?

Budapest Közművek Nonprofit Ltd (BKM), a utilities company owned by the municipal council of Budapest, is the only party that has exercised pre-emption right for the purchase of a brownfield site designated for development around the Rákosrendező railway station in the north of the capital, the National Economy Ministry said on Friday.

The ministry said that the deadline had passed for Stockton Ltd to exercise its pre-emption rights for the property.

BKM must provide the seller of the property, the state, with an owners’ guarantee or equivalent security for the first two installments of the purchase price, of around HUF 30.5bn, within eight days of signing the contract, the ministry said. Within ten working days, it must transfer 25pc of the total purchase price: HUF 12.7bn, it added.

BKM must sign a contract with state-owned railway company MÁV on regulating the use of areas for rolling stock within 60 days, the ministry said. BKM is also responsible for clean-up at the site, and it must reach an agreement with the Construction and Transportation Ministry outlining regulations necessary for the implementation of planned developments at the site within six months, it added.