Coffee with Craig Show – daily CRE news covering the CEE region – Tuesday, March 15 with Winston Norman Editor and Chief of EuropaProperty.com – Celebrating over 300 shows!!! Become a partner and reach over – 8,000 viewers weekly – 14,000 viewers on the Executive interviews.
SIGNIFICANTLY INCREASED SHORT- AND LONG-TERM UNCERTAINTY PREDOMINATES MARKETS
In the context of a second major economic shock from the war in Ukraine and continuing inflationary concerns, Emerging Trends in Real Estate® Global Outlook 2022 focuses on the global outlook for the real estate industry increasing pressure for finance to support the decarbonisation of real estate. The industry challenges lenders and their regulators to provide debt for the retrofit of existing buildings and the scale-up of the ‘climate tech’ needed.
ULI Europe CEO Lisette van Doorn said: “Having already faced a challenging two years, the real estate industry is up for more uncertainty, and not just for the short term. The industry is once again facing an economic slowdown while struggling to come to terms with long-term structural trends reinforced or accelerated by the pandemic and now also Russia’s invasion of Ukraine. One of the key questions relates to how the current crisis will influence the environmental, social and governance (ESG) agenda? The pandemic has already reinforced the importance of ESG for everyone in real estate. If anything, the interviews for Global Emerging Trends indicate even greater concerns this year around the capital and operational expenditure as well as the risks associated with making real estate fit for purpose.”
Gareth Lewis, Director, PwC Real Estate, said: “Our research for this year’s Global Emerging Trends in Real Estate Report has highlighted some familiar themes to the last few years. The Ukraine crisis, however, has created a new and more sharply focused cause for immediate concern, particularly around rising inflation and interest rates – giving rise to stresses that the real estate world has not had to grapple with in earnest for decades.”
TRISTAN DELIVERS RECORD YEAR WITH €5 BILLION OF DEALS IN 2021
Pan-European real estate investment manager, Tristan Capital Partners, has announced at MIPIM that its Funds completed €5 billion of transactions in 2021 – a 92 percent increase compared to 2019. The figures include c.€500 million of real estate debt, originated through Tristan’s “TIPS One” Fund which was launched in 2021, extending the firm’s Funds series to cover core-plus, value-add / opportunistic and debt.
Commenting from Cannes, Cameron Spry, Co-Chief Investment Officer at Tristan Capital Partners, said: “This is a significant achievement in light of the environment in which we’ve been operating. In 2021 we focused on investment activity in the largest most liquid markets and further diversified the product across our fund series. Despite COVID and the challenges faced by the market, we have continued to receive the support and confidence of new and existing clients across our funds which enabled us to successfully deploy capital, drive returns and extend our network across Europe.”
Ali Otmar, Head of Investments at Tristan Capital Partners, added: “Looking ahead, we will continue to invest in sectors that prove their resiliency and demonstrate strong growth potential to create value for our investors.”
GTC DELIVERS PILLAR OFFICE BUILDING IN BUDAPEST
The Pillar building has been delivered with the largest pre-lease contract in the history of the Hungarian office market, signed by GTC and US energy company ExxonMobil, in 2019.
Pillar provides up to 29,000 sqm of commercial area at a premium level. Already fully leased, the building offers cafés, restaurants, co-working spaces, a post office, a playroom, a garden, bike facilities, shopping, and a conference centre.
“This innovative, sustainable space which, even before being completed, became a house for such a prominent company like Exxon Mobil, has the potential to broaden the market and further develop our business scene,” says Ede Gulyás, Country Director of GTC Hungary.
Pillar was designed and constructed in line with LEED Platinum certification and is now part of GTC’s eco-friendly portfolio.
“We appreciate the great and ever-growing potential of the city of Budapest and we are proud to have put yet another stamp on its dynamic and extremely promising real estate market,” says János Gárdai, GTC’s Chief Operating Officer.
EBRD LENDS PLN 144 MILLION FOR NEW POLISH WIND FARM
The European Bank for Reconstruction and Development (EBRD) is lending PLN 144 million (€30 million equivalent) to support the development, construction and operation of a new 56MW wind farm at Zelechowo in Poland. The project will be co-financed with a commercial lender, mBank S.A.
The 16-turbine wind farm is expected to save 95,000 tonnes of carbon dioxide emissions a year.
The borrower is indirectly owned by Energix Renewables Energy Ltd, a leading Israeli independent power producer focussing on onshore wind and solar PV in Israel, Poland and the USA with an existing relationship with the EBRD. Having entered the Polish market in 2012, it is expected to reach 300 MW installed capacity in Poland by the end of 2022.