Companies linked to Lőrinc Mészáros acquire Lake Park project

September 14, 2016

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Duna Aszfalt owners László Szijj and Károly Varga have received permission from the the Economic Competition Office (GVH) to acquire the assets of a massive Lake Park (Tópark) development project to the east of Budapest, reports Napi.hu.

The largest mixed-use development to be undertaken in Hungary, the 170-hectare Lake Park has stood half finished on the border of Törökbálint and Biátorbágy since the end of 2010, when the bank financing the HUF 300 billion (USD 1.1 million) project, Eurohypo AG, backed out, calling in all the loans.

It did not take long for project owner EIK Kft. and general contractor Deutsche General Kft. to declare bankruptcy.  Among the subcontractors they stiffed was Lavinamix Kft., an earthworks and road construction company which somehow managed to obtain ownership of the 10-hectare area along with a 173,000-square-meter reinforced concrete shell comprising the first phase of the project.  Originally designed to be office buildings, the company began completing one of the buildings as a 140-unit block of flats.

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On August 29th a consortium of Duna Aszfalt subsidiaries, Vakond Via Építő és Szolgáltató Kft., Hódaszfalt Mélyépítő Zrt. and Hódút Freeway Aszfaltkeverék Gyártó és Építő Kft., received permission from GVH to purchase machinery, vehicles, transport equipment, repair and warehousing tools, and property from Lavinamix Kft. relating to the Lake Park project.

Not known at this time is whether the consortium is acquiring the entire 170 hectares or only the first phase consisting of Lavinamix’s 10 hectares.

In addition to Lavinamix, as of March 2015 there were two other owners, both Swiss: Detap Holding AG and Balan Two AG. At one point a Russian investor also acquired an ownership interest.

The development group is co-owned by Károly Varga and László Szijj.

Correction: 

An earlier version of this article incorrectly claimed that László Szijj is the son-in-law to Lőrinc Mészáros, the pipe-fitter turn billionaire that many suspect to be Viktor Orbán’s strawman. The correction here is that a company connected to Szijj is run by Mészáros’ son-in-law.