Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, March 15, with Winston Norman, Editor and Chief of EuropaProperty.com.
Interest rate uncertainty and lack of finance holding back real estate transactions
Says Emerging Trends in Real Estate® Global Outlook 2023, report, launched at MIPIM by the Urban Land Institute (ULI) and PwC, and is a key indicator of sentiment in global real estate and investment and development trends across the globe.
According to global industry leaders, the economic outlook for real estate contains major areas of uncertainty driven by ongoing increases in interest rates and lack of debt and equity capital available, resulting in low liquidity, concerns about refinancing of existing loans and a ‘wait and see’ mode across the industry.
ULI Europe CEO, Lisette van Doorn, comments: “Real estate leaders are adjusting to interest rates that are expected to stay higher for longer and getting to grips with a new normal of higher finance costs and minimal capital growth.”
Gareth Lewis, ETRE Leader and Director at PwC, said: “The slow speed with which real estate is revalued relative to equities and bonds is causing a problem for institutional investors, especially in the US, Europe and Australia.”
Kajima and Griffin acquire majority stake in leading photovoltaic company
Kajima Europe together with Griffin Capital Partners have acquired a 70 percent stake in HYMON, Poland’s leading photovoltaic installation company. This is the second joint initiative by these partners in Poland’s renewable energy market, having taken a majority stake in PAD RES, a leading developer in Poland’s clean energy asset space, in 2021.
Chris Gill, Investments Director & Head of Renewables at Kajima, said: “We recognise huge potential in the Polish RES market, and through this second renewables sector-based partnership with Griffin, we will strengthen our presence in this dynamic emerging sector.”
Tomasz Mrowczyk, Co-Managing Partner at Griffin Capital Partners, added: “We are steadily increasing our participation in the energy transition.”
Enlarged Eurovea development on the Danube nears completion
J&T Real Estate will start to hand over respective parts of the enlarged Eurovea project. The opening of new roads and cycle paths will be followed by the ribbon cutting for the bigger shopping centre and public spaces, followed by Riverside residences, Pribinova 34 and 40 buildings, green areas, and Eurovea Tower – the first skyscraper in Slovakia.
JTRE has invested over €34 million in public spaces and infrastructure. Coupled with ground remediation costs (necessary due to an environmental burden dating from the WW2 bombing of the Apollo refinery), public benefit investments surpassed €40 million.
“Public spaces for relaxation and active leisure, as well as green areas, are an essential part of the enlarged Eurovea, and we gave them special attention,” explains Pavel Pelikán, JTRE’s executive director.
Panattoni enters the Danish market
After a quick and energetic start on the Swedish market with large land acquisitions, a devoted organization and several approved building permits, as well as construction, starting around the country, the focus is now on Denmark.
“The Swedish real estate market for logistics is the single largest market in the Nordic region and the reason why we have chosen to establish ourselves here first. However, most of our customers see the entire Nordic region as a common market and therefore it is important that we also have a presence locally in Denmark, in order to enable an entire offer,” says Fredrik Jagersjö Rosell, managing director of Panattoni Sweden.