István Tiborcz, Prime Minister Viktor Orbán's son-in-law, has apparently moved on to the real estate business from developing public lighting facilities, as a group of companies led by him and Norbert Szivek, the head of the Hungarian National Property Manager took over the development of two five-star hotel projects in two days last week, reports 444.hu.
The prime minister's on-in-law was known for winning public procurement deals for public lightning facilities all over Hungary until the EU's anti-fraud office became interested in the causes of his incredible winning streak last year. Tiborcz lay low only for a little while as he has made the news a few times this year for being involved in a group of companies that buy run-down castles in order to develop those. He significantly stepped up his property game last week, as he joined forces with Norbert Szivek, the head of the Hungarian National Property Manager, to take over the development of two five-star hotel projects.
One of the prospective hotel buildings is the former headquarters of MAHART, the Hungarian Shipping Company in the centre of Budapest. According to conservative weekly Heti Válasz, Tiborcz and Szivek got a HUF 15 billion loan from state-owned Eximbank to buy the whole block around the building. The former owner planned to develop a five-star Marriott hotel there.
The other hotel project the pair took over is a half-done building in Visegrád, with a view over the picturesque Börzsöny Mountains and the Danube Bend. This project was started by an Irish firm from a HUF 16 billion loan provided by the Hungarian Commercial Bank (MKB). The project was halted during the depression of 2008, and one of the companies connected to Tiborcz bought the building for less than HUF 2 billion from the now also state-influenced MKB.
Last Updated on Thursday, 15 December 2016 07:55