Coffee with Craig Show – daily CRE news covering the CEE region, Monday, November 21, with Winston Norman, Editor and Chief of EuropaProperty.com.
Offices most traded asset type in the CEE-15 countries
The investment volume for office assets accounted for €2.5 billion which was 42 percent of the total investment volume in H1 2022 in the CEE-15 region. Office investment dominated the first half of 2022, as the most traded asset type in the CEE-15 countries. The strongest transactional activity was recorded across Poland, reveals a new report by Colliers: “ExCEEding Borders: CEE-15 Office Markets in Turbulent Times”.
Kevin Turpin, Regional Director of Capital Markets, CEE at Colliers comments: “A wait-and-see approach taken by many investors is, amongst other factors, a result of increased costs of financing, caused by rising interest rates and related costs such as interest rate swaps, which have increased significantly YoY. Early signs of price adjustments in some western European markets, moving out by between 25-50 bps, have already been recorded and we can expect similar pricing shifts to follow in CEE”.
White Star Real Estate sells Krisztina Plaza in Budapest
White Star Real Estate has sold the 17,000 sqm Krisztina Plaza office building in Central Buda. The name of the buyer was not disclosed.
The first-generation office complex was bought in 2019 and badly needed a total refurbishment to meet the latest technical requirements. White Star Real Estate made a successful repositioning and managed to let it nearly completely.
The owner was responsible for property and facility management over the past years, making the complex to become an A-class office building. This resulted in attracting investors and closing a deal with one of them. The name of the buyer was not disclosed.
CPK awards Foster + Partners design contract for new Polish airport
Centralny Port Komunikacyjny (CPK) has completed the tender related to the construction of Poland’s new CPK airport and signed an agreement with a consortium of Foster + Partners and Buro Happold Limited, whose bid was found to be the most advantageous in the proceedings for the selection of a Master Architect.
The value of the contract is €150 million. The concept design of key CPK buildings is expected to be ready as early as the middle of 2023. “Together with the world-famous architects, we will prepare the ultimate design of the most important part of the new Polish transport system,” says Mikołaj Wild, CEO of CPK.
One of the main assumptions of the design is expandability and modular construction, enabling the airport to be built and operational by the year 2028 and ready to serve up to 40 million passengers and then expand seamlessly to meet the 65 million passenger target in 2060.
“We believe that this project will completely revolutionise travel across the country and beyond,” says Grant Brooker, Head of Studio, Foster + Partners.
NRF leases warehouse and office space in Panattoni Park Tricity West II
NRF, the Dutch-based manufacturer and supplier of spare parts, has come to Panattoni Park Tricity West II, where it leased 32,000 sqm of modern warehouse and office space. It was advised during its search for the optimal facility and the lease negotiation process by Newmark Polska.
“NRF was looking for warehouse and office space in Tricity that could grow with its rising order volumes. Panattoni Park Tricity West II fulfils these requirements and features 47 loading docks. The height of the building is another advantage that enables the tenant to increase the number of pallets stored. We are pleased that NRF has trusted us again and relied on our experience,” says Michał Rafałowicz, Regional Director, Newmark Polska.
“Tricity boasts the largest seaports in Poland and is among the most economically developed regions in the country. Modern industrial space plays a key role in exploiting its location potential, which is why Tricity is one of the first Polish markets to have seen its total industrial stock surpass one million square metres,” says Martyna Sochaczewska, Leasing Director, Panattoni.
Real estate business confidence and expectations of profitability have dropped to a low level, reflecting widespread industry concerns across an array of indicators for the business, political and real...