Coffee with Craig Show – daily CRE news covering the CEE region, Monday, July 10, with Winston Norman, Editor and Chief of EuropaProperty.com.
Industrial & logistics rents set to continue to rise across Europe
According to Savills latest European Logistics Outlook, growth in prime rents is set to remain robust across the continent having increased by 10.4 percent in the last four quarters. This is despite vacancy creeping up to 3.5 percent in Q1 2023, reflecting the impact of slower leasing activity.
The growth of headline rents since the beginning of 2022 is estimated at around 15 percent – 25 percent on average, while effective rents have risen by approx. 20 percent – 30 percent.
This upwards trend in EU supply is likely to continue into Q2 and beyond until a slowdown in construction starts to translate into reduced completions later in the year.
In Poland, the vacancy ratio in Poland has increased at a fast pace to 6.2 percent in Q1, predominantly due to a large volume of new space delivered since the beginning of 2023.
John Palmer, head of industrial Investment, at Savills Poland, says: “Investors are more and more quality and specification focused and realise the importance of all aspects of ESG in their investments. The main concern of investors is the uncertainty of exit pricing of commercialised products however we see this returning quickly once global markets stabilise.”
Panattoni acquires over 26 ha in Silesia
Industrial developer Panattoni is undertaking another gigantic project in Silesia. The company has bought 26 ha of land and has launched work on its first development in Bytom, which is to comprise three industrial buildings. The location allows for easy access to key cities both within the country and throughout the Central European region.
“Bytom has all the benefits of the region with good communications and a wide range of sites with utilities. The city does not have much modern industrial space so its development potential in this respect is huge,” says Aurelia Rachtan, the Senior Development Manager at Panattoni.
By creating Panattoni Park Bytom, the developer will provide a business platform to support the development of many different industries. The modern buildings will be an excellent fit for the needs of logistics and warehousing as well as manufacturing. Additionally, they will include social and office space as well as supplementary facilities so that they are suitable for the operations of future tenants.
Nrep acquires majority stake in Swedish residential developer
Real estate investor Nrep has acquired a majority stake (51 percent) in Klövern, a Swedish residential developer owned by Corem Property Group. For Nrep, the deal represents a unique opportunity to invest in an established and successful residential player with over 20,000 building rights in prime locations in urbanized areas of Stockholm and the Mälardalen region.
Rune Kock, CEO of Nrep said: “Sweden has an increasing population growth, and this acquisition enables us to meaningfully contribute to the supply-demand gap of housing, whilst growing our portfolio in collaboration with mission-aligned partners. Klövern has a strong residential portfolio which, in combination with our strategy and ambition in the residential segment, has great potential for development.”
Maspex Romania chooses Globalworth Campus to house its operations
Globalworth has announced the hosting of Maspex Romania’s headquarters in Globalworth Campus A, starting in autumn 2023. Maspex Romania is the largest Polish investor in Romania in the food and beverages sector and began its activity in the country in 1996.
“We celebrate multiculturalism every day in the Globalworth community, but this time we welcome tradition into our business hub in Romania,” said Ema Iftimie, Head of Leasing at Globalworth Romania.
“Due to the multitude of brands and activities associated with them, Maspex Romania is continuously in a positive dynamic, so we adapt the rhythm of our company according to them,” said Grzegorz Grabowski, CEO of Maspex Romania, Bulgaria and Hungary Business Unit.
