Coffee with Craig Show – daily CRE news covering the CEE region, Monday, March 6, with Winston Norman, Editor and Chief of EuropaProperty.com.
Mercedes developing €135 million e-vehicle engine factory in Romania
Construction works have kicked off at Sebes in central Romania for the e-vehicle factory where Star Assembly and Star Transmission, the local divisions of Mercedes-Benz AG, will produce electric motors for the new line of cars with EQ batteries starting in 2024.
For this investment, the German group was granted €37 million in state aid. The total value of the investment, including the production equipment, amounts to €135 million, according to the data published by the Ministry of Finance.
Mercedes group has already invested nearly €600 million in production capacities, notably a gearbox factory in Sebes.
European gaming primed for revenue growth of 8 percent per annum over next five years
According to Savills latest research, the European gaming sector is primed for revenue growth of 8 percent per annum over the next five years, driven by rising user growth, digital adoption, corporate investment and a competitive developer landscape. Savills expects that as the gaming industry evolves, companies’ requirements will grow, leading to increased take-up levels of office space from the sector.
Rob Pearson, Director of Tenant Advisory at Savills, says: “Given the backdrop of a competitive labour market many gaming companies would rather not co-locate in office buildings. We also know that these businesses put an incredible value on their intellectual property and highly value security. Consequently, most of the demand for development studios in a large gaming company’s portfolio will be in self-contained offices.”
White Stone Development sells office building in Warsaw
White Stone Development has sold the Celebro office building to Lithuanian investor Eika Real Estate Fund. Celebro is a class A office building located in Warsaw. Built in 2019, it has a BREEAM New Construction Very Good certificate. Celebro is 100 percent leased. The largest tenant is Avon.
Anna Suchodolska, co-CEO and CFO at White Stone Development, commented: “We are proud that our building has attracted a new investor on the Polish market, Eika Real Estate Fund.”
Viktorija Orkine, CEO of Eika Asset Management, said: “We perceive Poland’s real estate market as strong and stable, therefore we consider further purchases here.”
CA Immo Poland records increase in green leasing activity
CA Immo has concluded 45 lease agreements with a total of nearly 29,000 sqm of office space in Warsaw in the past year. Since May 2022, 23 green lease agreements have already been concluded.
“Our good leasing result for 2022 shows that centrally located properties offering high-quality, sustainable office space, managed by a proven, trustworthy and reputable partner continue to be attractive for tenants,” commented Andrzej Mikołajczyk, Managing Director at CA Immo in Poland.
Benefits of a green lease include efficient energy management, cost savings through the reduction of electricity and CO2 emissions, promotion, and the use of renewable energy sources.