Coffee with Craig Show – daily CRE news covering the CEE region, Wednesday, October 18, with Winston Norman, Editor and Chief of EuropaProperty.com.
Panattoni launching another warehouse project in Warsaw
Panattoni is launching another project in Warsaw’s Targówek district. The company is to deliver around 17,615 sqm of space in an investment of €8.5 million. City Logistics Warsaw VI will be the company’s tenth development in Warsaw.
The new project will allow tenants to easily serve the Warsaw market as well as run their national and international operations since they will have access to the E67, a key pan-European transport corridor.
“The development of another urban project in Warsaw demonstrates how attractive Warsaw is for the City Logistics sector,” says Karolina Przygoda, the Associate Leasing Director for the Warsaw City Region at Panattoni.
Office vacancy climbs again in Budapest in Q3 2023 says BRF
The office vacancy rate in Budapest has increased to 13.2 percent. In the third quarter of 2023, two new office buildings were delivered to the office market with a total of 13,460 sqm. The south wing of Liberty Offices (9,720 sqm) on the Non-Central Pest submarket, and HomeWork (3,740 sqm) on the Central Buda submarket were handed over.
According to BRF, 157 lease agreements were concluded in Q3 2023 and the average deal size amounted to 871 sqm, reflecting an 18% growth in deal size quarter-on-quarter BRF registered four transactions concluded on more than 5,000 sqm office space, including two renewals, two new leases. The largest transaction of the quarter was a lease renewal in GTC Metro, while the second largest transaction was a new lease agreement, concluded in Magyar Telekom HQ for more than 10,000 sqm.
Finep sells residential project in Prague to Mint
Property developer Finep has sold a house with rental apartments in Prague 9 to Mint’s residential fund. The former Veltex building is expected to bring mainly small apartments to the rental housing market within about two years. According to local reports, the transaction is worth almost €40 million. “This represents an investment opportunity for us,” said Erik Janovský, investment manager at Mint. “We are rescuing a brownfield, a former industrial hall, and transforming it into apartments.”
Duda Development sells two Silesian retail parks
Duda Development has sold a Silesian retail park portfolio to a private investor. Zabrze retail park The entire area of over 3,000 sqm has been let. The biggest tenants are Biedronka, Pepco, Rossmann and TEDi: stores covering a wide scope of customers’ everyday needs.
Gliwice retail park offers over 3,300 sqm GLA which is also 100 percent rented. The main tenants are discount retailers: Aldi, Pepco, Rossmann, TEDi.
“The transacted retail park portfolio offers what the best quality retail park in the regional market should have: great location, excellent tenant mix and additional facilities. In times of market uncertainty, investors tend to focus on the best projects, offering a perspective of long and stable income,” comments Artur Czuba, Associate Director of Investment at Avison Young.