In 1999, after decades of on-again-off-again plans to build a new Hungarian National Theatre, architect Mária Siklós was commissioned to make plans for a building on the bank of the Danube just north of the Rákóczi Bridge. Due to a controversial protest by the Chamber of Architects, the project was put out to bid. György Vadász won the bid, but chose to use Siklós’ completed plans.

The site had previously been set aside for a planned joint Vienna-Budapest world expo that never took place. Prominent among the other new buildings on the site is the Palace of Arts, designed by Zoboky, Demeter and Partners. It houses the Béla Bartók National Concert Hall, the Ludwig Museum of Contemporary Art and the Festival Theatre.