By Dominic Welling

Budapest Airport has leased up to 80% of its soon-to-be-built cargo base to two ground handling companies, Celebi Ground Handling and Malèv.

The Cargo City's first phase of development, which will see the construction of 11,000sqm of warehouse space and 5,000sqm of adjoining office space, is expected to be completed by autumn 2012.

So far the airport has leased up to 80% of this space to two major ground handling companies at the airport - the Turkish company Celebi, and the Hungarian firm Malèv.

Meanwhile, Budapest Airport's Business Unit Property is currently in negotiations to lease the remaining 20%.

The construction of the Cargo City is scheduled to begin in September 2011 in the southeastern part of Budapest Ferenc Liszt International Airport, on the side of runway II facing towards Vecsès.

After the completion of the first phase, a further 11,000sqm of warehouse space and 5,000sqm of office space is due to be built, making a total Cargo City of 32,000sqm.

Renè Droese, property director at Budapest Airport, said: "The project received very positive feedback from the market, which is clearly indicated by the quick commitment of our two big business partners.

"Cargo City offers a lot of advantages for the local community by creating new job and business opportunities, boosts the economy of the entire Southern Budapest region around the airport."

The new development will replace the outdated facilities currently located near Terminal 1.

The project will have positive impact at several levels, bringing both operational and environmental benefits for air cargo operators, whose trucks will have direct access to the M0 and M4 motorways from the facility without going to downtown areas.

According to the gateway, there is a two kilometre stretch of airport land available for development on the side of the airport facing towards Vecsès.