September 30th, 2008

Tenders for military-owned properties fail to ignite bidding wars

Sometime tomorrow, the Hungarian government will officially launch a tender for the Taszar airbase, which, before it was closed in 2001, had the distinction of being the first U.S. air base in the former Soviet Bloc. From various news sources we hear there will be a two-month tender period, after which bids for the property will be judged, in part on the bidders’ plans for creating new jobs and economic development in the surrounding area.

But judging from an interesting (subscriber only) piece late last week on Napi Gazdaság about efforts by Hungary’s defense ministry (HM) to unload some of its unwanted property, it seems most such “army surplus” sales have turned out to be bombs.

The napi piece says the HM is trying to unload upwards of 1,000 piece of real estate – many of which seem to host functioning businesses – it no longer needs. These including unused barracks, shooting ranges, practice grounds, office buildings, clubs and holiday resorts.

But the only two public tenders launched and closed this year to sell such properties were unsuccessful, with the three deals actually done involving closed sales to local governments.

Four other tenders announced on the website of Hungarian National Asset Manager (MNV) are open until October 28. These aim to sell holiday resorts in Bánk and Berekfürdő, a barrack in Kiskunhalas and an office building in Veszprém. As with Taszar, there appear to be significant strings attached to the deals.

Ministry people quoted in the story concede that, while properties in and around Budapest tend to draw interest, dilapidated barracks and other properties far from Budapest are a hard sell. As a result, even though they haven’t yet put everything for sale officially on the market, there is already talk about surrendering and just handing over more of the assets to local governments, or turning them into national parks.

Topics
Share
Comments
The All Hungary Media Group is firmly committed to freedom of expression and therefore applies a mostly "hands off" approach to comment moderation. Comments left by readers represent their own views and do not necessarily reflect the opinions or beliefs of the staff, editors or owner of the All Hungary Media Group, who nonetheless reserve the right to remove comments that are off-topic or which moderators consider to constitute "hate speech." Also note that in order to prevent spam we generally close entries off to comments several days after publication.

Comments are closed.