Coffee with Craig Show – daily CRE news covering the CEE region with Publisher Craig Smith and Winston Norman, Editor and Chief of EuropaProperty.com.
Polish investment market under pressure from geopolitical backdrop
According to BNP Paribas Real Estate Poland, Poland’s economic outlook remains stable but the global geopolitical situation and high interest rates continue to hamper a quick rebound in commercial property trading and large-scale transactions.
BNP Paribas Real Estate Poland reports that 2023’s total transaction volume reached nearly €2.1 billion. This was the result of the tightening of monetary policies and strong yield decompression across Europe, forcing some investment funds to freeze allocations to commercial real estate and to look for alternative assets.
“By the end of 2023, most European bond yields were on a downward trend, but the outbreak of the conflict in the Middle East, which is a major oil supplier, and the fear of rising energy prices and renewed inflation worries were unfavourable for the market. Consequently, the European economic outlook remains uncertain and the spectre of interest rate hikes is still looming. However, 2024 economic forecasts for Poland look promising, with the country’s average annual inflation rate expected to fall to 5 percent (down by 6.6 pp relative to last year)”, says Mateusz Skubiszewski, Head of Capital Markets, BNP Paribas Real Estate Poland.
Panattoni receives financing for Ruda Śląska asset
Panattoni has recently started construction of another hall within Panattoni Park Ruda Śląska II. Now the company has secured financing for the investment. The €9.4 million loan was provided by Millennium Bank.
The new stage of Panattoni Park Ruda Śląska will comprise an area of 16,000 sqm that has been fully leased to Konimpex – a Polish company with a global reach involved in the sale, logistics and distribution of chemicals and industrial raw materials.
“Last year, we at Panattoni received over €800 million in bank financing for the development of our projects and we are not slowing down. We have just received a loan to construct the third building in Panattoni Park Ruda Śląska II. This is no random location in Silesia. It is a region that is particularly attractive to both tenants and investors,” says Karina Trojańska, Chief Financing & Operating Officer – Poland at Panattoni.
CTP lets 60 percent of new additions to CTPark Prague North
CTP has signed three ten-year leases in its most sustainable industrial park near Prague, comprising more than 60 percent of a new 32,000 sqm building that will be delivered by the end of Q2 2024 at CTPark Prague North.
The tenants of CTPark Prague North will include the Albert supermarket chain. Another client is Fulfillment.cz, specializing in warehousing and logistics for e-commerce, and MEMODO, a photovoltaic and heat pump wholesaler.
Jakub Kodr, Managing Director and Head of Business Development of CTP in the Czech Republic emphasizes: “We are now realizing our vision of a modern and sustainable industrial park with these major tenants who share our values and ambitions.”
