“I’m a maximalist, sometimes annoyingly so” – Interview with Péter Csipak, Founder of Fashion Street

Visionary, maximalist, and determined till the very end; it is not by chance that these fierce characteristics describe Péter Csipak the best — they are responsible for the incredible urban development that we know today as Fashion Street Budapest. The high-street — which houses the most elegant world class brands, five star hotels, and quality restaurants — celebrates its eleventh anniversary this year. But just as Rome wasn’t built in one day, the story of Fashion Street is also rife with hardship and difficulties. We talked about great visions, tough beginnings and strong motivations with Péter Csipak, who lives by the aphorism: “You may fail, but you cannot give up.”

FS: Where did the idea for this world class, exquisite Fashion Street come from?

PCS: I remember how, as a young man, I wistfully watched the streets of Vienna, Milan, London and Paris; the incredibly beautiful shop windows and the pristinely clean buildings, which remained in their original state and were very well kept. At the time, the enormous gap between Budapest and these Western-European cities was quite obvious. This was during the decade after the regime change, at the end of the 90s. Privatization was in full force, and companies continued to start and fail. In Budapest, the only thing that developed were shopping malls on huge empty sites — these enterprises obviously offered far greater profits than the development of an already existing but neglected part of the city. Businessmen and developers merely desired revenue; there were no aspirations for quality. I envisioned Fashion Street at the time of this incredibly nihilistic atmosphere.

What made you decide on Deák Ferenc Street?

Our family had a hair salon in Budapest for generations and I spent a lot of time there, thus my love for the heart of Budapest was already an integral part of me as a child. Thinking back, I feel it was fate that I spent so much time around the now known Kempinski Hotel Corvinus as a teenager — already then, I was drawn to the dark and nameless street that we now know as Fashion Street.

But you had never worked in the field of real estate development before creating Fashion Street.

That’s right, before Fashion Street I worked in the catering industry. I left behind a company that encompassed an entire restaurant chain in the early 2000s. I will never forget that after making this huge decision, I was walking on Vörösmarty Square with someone, who asked me what I wanted to do next. My immediate reply was that I wanted to become a real estate developer — even though I had never done it before. Subconsciously, I had satisfied several deep desires whilst working in the restaurant industry, where I was responsible for everything from naming to visual conceptions, up until the interior design. I understood then that my inner need for creativity had not been a 100% fulfilled — I was looking for a new and long-term challenge that would allow me to realise this desire.

“I envisioned a pristinely clean Fashion Street, perfect in its every aspect. And so I began.”

Later, in 2001 (the founding year of Immobilia Ltd.), fate provided the company with the opportunity to acquire the Deák-Palace, which I accomplished in slow and steady strides. This wasn’t an easy task: apart from apartments owned by the municipality, the building also housed twelve privately owned flats. Immobilia had to buy these flats from the owners one-by-one, so that the company could secure exclusive rights to the property. In my head, I started calling them the ‘Twelve Angry Men.’ Don’t misunderstand me, I was not the reason for their anger; it was the world and everyone else. They lived in a haunted house, which had the potential for beauty if only someone would care enough to repair the broken corridors, elevators, and hazardous parts of the building.

Immobilia made a deal with each of the twelve angry men regarding the acquisition of the properties: one of them asked for a mansion for his grandchildren in the 12th district; for another owner we secured a place in a retirement home; and the with last owner — who made sure to be the last of the twelve — Immobilia agreed on an implausibly high sum for a 36 m2 apartment in which a dirty hole served as a toilet. Despite any dissuasions and ‘definite no’s,’ the company bought each and every one of these apartments. I knew it would be the only way Immobilia could exclusively own and operate it as an office building and house stores on the ground floor, in a manner that fits both the expectations of this age and the architectural values of the past.

“People’s appreciation is a clear feedback: I created something good and it works”

During the same acquisition, after buying out all the privately owned apartments, Immobilia won the municipality’s tender as well. This was followed by the development of Deák Ferenc Street number 17 and 19, which was not without its challenges either. Presently, number 19 is the first retail store of Fashion Street, with Intimissimi and Nike. But at the time, it served as the garage for the Budapest Police Department. My lawyer had almost completely given up, but after numerous negotiations and sacrifices, we managed to acquire this entire section of the arcade and were able to move forward.

There was another property in the street, called the Grand Casino; the only reason Immobilia managed to buy it was because of an argument among its owners. Today, it houses ZARA HOME, covering two floors and the basement. The owners made me sign an agreement which stated that Immobilia would not open a new gambling establishment in the building following the closure of the Grand Casino; they were completely taken aback that instead of continuing this business model, we would in fact rent it out to a ‘boutique,’ as they called it.

Encouraged by these successes, I saw an opportunity: here is this undeservedly disadvantaged street, with the treasure of historical monuments that were not protected or cared for by anyone. Damaged both by war and by socialism — entire facades had been plastered over and rendered invisible — they were dark, covered in soot, and scruffy; I wanted to achieve the exact opposite. I envisioned a pristinely clean Fashion Street, restored to its original state, tempting people with its beautiful store windows — simply perfect in its every aspect. And so I began.

Thus far, the process does not sound like a walk in the park, to put it simply. Were there any other difficulties during the acquisition?

The last difficulty was the acquisition of the corner building on Deák Square, which was owned by the Porsche family. Immobilia did not offer a small amount for it at first either, but when we were forced to make a third offer a year later — a near-impossible amount — all realistic calculations went out the window. None other than the legendary grandmother of the Porsche family stood in the way of the deal, who loved this street section in Budapest, especially because the property was the first acquisition of the Porsche family in the Eastern Bloc. She only knuckled under a fourth offer, of which the CEO of Porsche-Hungária simply said: “Péter…. well, you know it.” And in fact, I did know it: without this building the street wouldn’t have been thematic from corner to corner; my vision for Fashion Street would never have been realised. We would have simply had a few pretty stores in an ordinary downtown street.

“I’m a maximalist, sometimes annoyingly so”

Where did the name Fashion Street come from?

I discussed the name with many consulting agencies fifteen years ago: after countless representative surveys, innumerable other names were preferred over Fashion Street. But I trusted my intuition and my ability to get it right, and decided to go with the name I had chosen. I’m critical with others as well as myself: if I can be convinced of something opposing my beliefs, I’m willing to recognize and accept it. I think that my approach can also be fully incorporated into other aspects of life; if you believe in something, listen to other opinions, evaluate them, and draw your own conclusions — if you still consider your initial idea to be the best, keep going in that direction. Every single consultant was an excellent professional, but they did not have a vision for the street. I did.

“I can accept losing but I’m not capable of giving up”

Are you pleased when you walk on Fashion Street in the morning?

Not just in the morning, I’m very pleased in the evenings as well. Jokes aside, it is a fantastic feeling that I created something truly lasting in the heart of Budapest; an unprecedented thematic development of the city. And it will remain here for the next generations, too.

It is an even better feeling that the street is becoming increasingly beautiful; locals as much as visitors from abroad gladly took possession of it, and the boulevard is enriched almost exclusively with international companies and their franchises. People’s love is a clear feedback: I created something good and it works. But it took me ten years to become this content — a decade of operation which was able to survive, even in a world of economic crises.

Did you have to fight many battles to fulfil these dreams?

During the acquisition of Fashion Street, I arrived at a crossroads dozens of times. There were countless moments where the fulfilment of the dream that I had envisioned seemed so hopeless that all of my lawyers and colleagues doubted whether I should continue to force this idea. But my vision for Fashion Street was so strong that I felt there is no other way; I had to take risks, sometimes run into walls, work incredibly hard, go against any opposition, and continue to fight for this sublime goal.

Life is marked by different periods; for me, the last ten years have been long and filled with battles. Whereas the period before the opening ceremony of Fashion Street was one of dreaming and creating, all my energy has shifted towards protecting these dreams in the years since. I do not look for these battles, and yet I still have to fight them.

At my core I’m an idealist, a dreamer who loves making his dreams become reality. I have almost no time for the latter now. In the future, I hope to invest the energy that currently goes lost on daily meddles into creative projects — it is what I’m best at after all.

Are there other grandiose projects on your mind? What is your next dream?

As it was already planned during its inception, Immobilia is going to continue to develop Fashion Street. The vision for the Main Street project is to expand Fashion Street into a T-shape, incorporating Bécsi Street, in the direction of Kristóf Square to the left and Erzsébet Square to the right. Thus Immobilia started buying real estate in the corner building of Bécsi and Harmincad Streets, as well as neighbouring buildings from private owners, the municipality, and foreign investors in 2014. Immobilia has been working on the implementation of the Main Street project for 14 years; the company bought the first real estate in 2004, in the framework of the famous Zeppelin-Newtown Centre project of 2008. And although we have as many properties in Bécsi Street as we do in Deák Ferenc Street, unfortunately, life and the world economic crisis interrupted the process of our last acquisition. But I haven’t given up on Main Street: I would like to continue the development, restoration and beautification of downtown Budapest.

“My best and worst qualities are the same: I’m extremely headstrong and determined”

Do you like winning?

Who doesn’t? Of course I like winning my battles, but I can accept losing as well. What probably makes me different from most people is that I’m not capable of giving up. A fight can end in one of two ways: you either win or you lose – and be it a negotiation or real martial art, you must accept this fact before the battle begins. I believe that heat makes some people harder, and others softer. It makes me harder.

How would you honestly describe yourself?

I’m fundamentally a dreamer; a dedicated, innovative and creative person. I am also a maximalist, sometimes annoyingly so. My best and worst qualities are the same: I’m extremely headstrong and determined. When I believe in something, I will carry it out no matter the cost, and persuade every consultant, lawyer, or friend of my conviction. I have a terribly strong sense of justice and I’m extremely tenacious. But I don’t believe I trod on others in my battles. People who have been working with me for years or even decades know that I value them — I don’t think they would have remained with me for so long if they didn’t. Besides, over the years I’ve had to learn that my true talent is creation — daily management is not my strength, hence I rely on highly skilled professionals on these matters.

What do you value most in others?

It may sound commonplace, but dependability and honour are the most important to me. Everything else can be learnt. If you haven’t finished your studies or don’t have a lot of experience in your profession, it doesn’t bother me; these things can be learnt. On the other hand, if you aren’t honourable, and your personality is inherently dishonest, deceitful and incorrect, it can’t be helped; honour cannot be learnt. Thus, I followed my instincts and have chosen to surround myself with people I feel I can trust.

“I haven’t had a boss since I was 19. Save for the Lord up there.”

Is this the life you dreamt of as a teenager?

Regarding my vision for Fashion Street, apart from my attachment to the downtown, all I had going for me was a good sense of fashion. Ever since I was young boy, I always enjoyed dressing well; I love well-tailored clothes. But I did not excel in anything as a teenager. I was incredibly disinterested in studying; all I did was try to think of ways to buy a motorbike. During high school, my parents kept pestering me about my bad grades, claiming I would never be able to find a job. But not even their concerns could prompt me to work harder for my studies; after attending the college of economics for two days, I simply quit. I didn’t want to just sit there, I wanted to start my own business and earn money. I haven’t had a boss since I was 19, save for the Lord up there. Maybe I could have done it differently, but I chose this path — and as a first generation businessman I’m very proud of everything I have accomplished.

“I never slow down for the turn: I always go full throttle”

What are you most proud of in your life?

My son. Everything else is just work, objects, and money. I became a father when I was 20, and although I hadn’t planned on becoming a father at such a young age, he is still the best thing in my life. He is 27 now; smart, open, creative and independent. He was the one who taught me what it means to be truly responsible, and how to become a happy father. My son is a fantastic man and we have an especially close relationship.

Regarding Fashion Street, I’m most proud of the fact that I did not only create value or accomplish a thematic city development, but established a wonderful Fashion Street from a formerly non-functional, dark back alley; simply because I did not let go of my vision for it. I remember how many doubtful people surrounded me at the beginning, all of whom, I could tell, would have given up at the first failures. It fills me with great pride that we managed to accomplish what we did: we bought it all and developed it all, rented out the buildings and for 10 years now, we have continued to operate and develop the street. I’m also proud that with efficient operation and management, as well as determination, we managed to survive and even to continuously develop after the world economic crisis, which hit only two months after the street’s ribbon-cutting ceremony and opening in September 2008.

“Sometimes you have to cross the deepest pits of hell to rise above – even yourself.”

Do you have a role model?

If I had to choose from the business world it would be Sir Richard Branson, the founder of the Virgin Group, who is responsible for directing 400 companies at present. Branson is a true visionary; at the impossibly young age of 19, he started something that others wouldn’t dare when he created Virgin. Years later, he was arrested as a result of his businesses, the only way to pay his way out of prison being a mortgage on his parents’ house. Now he is among the wealthiest billionaires and most honourable philanthropists of the world, having even been knighted by the Queen of England. Branson taught me that sometimes you have to cross the deepest pits of hell to rise above – even yourself.

I greatly appreciate this quality in everyone and I try to live accordingly. I’m inspired by opportunities as well as struggles, attacks and injustices; already as a child I assimilated that running away or giving up is not an option. I may lose orbe beaten but I will stand up and continue to fight for my goals; because giving up on one thing would be equivalent to giving up on life.

What makes you happy? When do you feel content?

I am happy every day, even the smallest, littlest things bring me joy. But in life I feel content when I can create something and see it work.

Do you have time to relax in all this hurry?

Though not as frequent as I would like, I still manage to relax; sitting on my terrace, admiring the sunshine, and envisioning new creative projects are what I enjoy most. And I begin each day by practising sports: exercising regularly gets me off the endless treadmill of work and prepares me for the day ahead. Like everything else in my life, I do sports at full speed as well. I think that’s the only way it’s worth it.