Coffee with Craig Show – daily CRE news covering the CEE region, Tuesday, December 6 with Winston Norman, Editor and Chief of EuropaProperty.com.
Around 90 percent of older office buildings need retrofitting
The real estate industry accounts for around 40 percent of global CO2 emissions. JLL estimates that the outlay incurred in the sector’s pursuit of climate neutrality could total USD 3 trillion. Furthermore, according to the International Monetary Fund, further delaying the implementation of climate policy will negatively impact economic growth.
With as much as 11 percent of the world’s carbon dioxide emissions stemming from building processes, the most effective solution to this problem – from the point of view of a ‘global carbon bill’, – is to step up efforts to retrofit existing assets, rather than replacing them with new buildings. However, the lack of consistent standards may prove to be an obstacle.
To build on the drive for decarbonisation, the modernisation of buildings and the adaptation of real estate to changing needs are steps that companies should take in the near future to safeguard their business long-term. From the perspective of corporate strategy, ESG factors are no longer just buzzwords. In fact, they are having an increasingly important impact on both operating costs and the ‘resilience’ of the properties themselves to rising energy costs.
“The current energy crisis has highlighted the need to move away from fossil fuels and toward renewable sources, as well as the need to increase energy efficiency and reduce energy demand,” notes Jakub Frejlich, Director of JLL’s Strategic Advisory, responsible for designing and implementing ESG strategies for companies.
Penta secures €74 million loan for Prague office project
Penta Real Estate has secured a bank loan of €74 million from two banks, ČSOB and Česká spořitelna, for the construction of the office part of the Nová Waltrovka project in Prague. For the entire Nová Waltrovka project, which comprises two office buildings, a hotel and 400 apartments, Penta has increased the total budget to €205 million.
“We have an excellent experience with the financing banks on both sides. Despite the challenges of Covid, supply chain disruptions and cost increases, we are on schedule at Nová Waltrovka,” said Pavel Streblov, Penta Real Estate’s Director of Commercial Construction.
Veeva Systems relocates Budapest office to Atenor’s Roseville
Veeva Systems Hungary is relocating to RoseVille, developed by ATENOR Hungary, in Budapest. The new office will be handed over in 2023 on the top floor of the new office building.
The BREEAM Excellent and Access4You Gold-certified, ESG-proof project, RoseVille, is located in the 3rd district of Budapest, Óbuda. The development has a total leasable area of 15,500 sqm.
“We are proud to be part of The Roseville family and I am convinced that this office will undoubtedly be among the most beautiful in our portfolio,” said Ángel Mieites, Senior Director of Workplace & Facilities Europe, Veeva Systems.
“Sustainable and human-centred workplaces enhancing wellbeing are an important part of this culture and ATENOR is a partner providing exactly that to our tenants,” said Zoltán Borbély, Country Director of ATENOR Hungary.
Croatian section of corridor VC motorway opens
The EBRD provided a loan of up to €55 million to the state-owned national motorways company HAC for the construction. In addition to the 17.5-km section. The Bank’s financing was complemented by a €52 million loan from the Croatian Bank for Reconstruction and Development (HAC).
EVictoria Zinchuk said: “We are very pleased to support the completion of this trans-European corridor, which is a priority for Croatia and builds on the successful long-term cooperation between HAC and the EBRD and is a major step towards making European integration happen.”
To date, the EBRD has invested more than €4.4 billion in Croatia in 239 projects. The Bank’s activities cover all areas of the economy but are especially strong in the infrastructure, corporate, financial institutions and energy sectors.