Coffee with Craig Show – daily CRE news covering the CEE region – Thursday, April 21 with Winston Norman, Editor and Chief of EuropaProperty.com – Celebrating over 300 shows!!!
EBRD SETS UP CO-INVESTMENT WITH ADVENTUM GROUP
Adventum Group has reached a significant milestone in its history with the approval of a co-investment with the European Bank for Reconstruction and Development.
The EBRD’s Board approved a co-investment of up to €50 million alongside Adventum Penta in countries of the CEE region, including Hungary, Poland, and the Czech Republic. The first two joint investments are scheduled to be completed by the end of May. With this investment, the assets under management by Adventum Group are expected to grow to ca. €1 billion by Q2 2022.
“Adventum’s fifth Fund, Adventum PENTA, including its related JV structures attracted capital commitments of €240 million including significant amounts made by Western European and global investors,” commented Gergely Koós-Hutás on behalf of Adventum Group.
Kristóf Bárány, Founding Partner of Adventum also emphasized: “The rigorous ESG requirements of EBRD have been adopted by Adventum. The ESG strategy of the fund now goes beyond the requirements of SFDR Article 8 whilst it focuses on the lifetime reduction of the CO2 footprint achieved by energy savings, utilisation of recycled construction materials, and investing in sustainable infrastructure.”
Clifford Chance is acting as legal advisor for Adventum regarding the structuring of the co-investment vehicle while Deloitte is supporting the implementation of ESG matters.
SUPERNOVA LJUBLJANA RUDNIK EXPANSION OFFICIALLY OPENS
The expanded part of the Supernova Ljubljana Rudnik shopping centre has opened. The investment in the extension amounted to €70 million. The centre now covers 50,000 sqm and includes 109 stores, 50 of which are new, 7 cinemas, 19 restaurants and bars on two floors with terraces, two indoor amusement parks, outdoor playgrounds, a fitness centre, and 2,552 parking spaces.
Slovenia is one of the most important markets for the Supernova Group. The company’s goal is to develop smartly and make strategic acquisitions with the aim of further growth. Frank Philipp Albert, founder of Supernova says: “By focusing on the long term, partnership, and continuous development, we enable ourselves and our tenants to maximize added value and to offer our customers a holistic experience.”
Zdravko Počivalšek, Deputy Prime Minister of the Republic of Slovenia and Minister of Economic Development and Technology, welcomed the major investment: “I am glad that the investors in the Supernova upgrade project have recognized the advantages that our country offers.”
REGIONAL CZECH OFFICE MARKETS ARE BECOMING MORE ATTRACTIVE
According to a recent Colliers survey, the importance of regional cities in the Czech Republic will continue to grow: both due to lower prices and the creation of new, high-quality office space. Last year, annual gross demand began to grow again after a period of stagnation; both in large metropolitan areas such as Prague, Brno, and Ostrava, as well as in regional cities.
The number of companies looking for a quieter, but the dynamic, location or to expand into regions is growing. Therefore, Brno, Ostrava and other regional cities such as Pilsen, Olomouc and Liberec are gaining in attractiveness. “Brno and Ostrava should not be seen as a second option. These cities are growing and developing and improving transport infrastructure, public amenities, and also the natural and urban landscape, all of which attract skilled workers from the Czech Republic and abroad,” explains Jan Skalický, Office Associate at Colliers.
“Although we saw a slight increase in demand for office space in Prague and Brno in 2021, there were still echoes of stagnation caused mainly by the coronavirus-related situation; many companies were waiting to make, or postpone decisions. 2022 looks better. We are already seeing interest in office space, especially in Brno, after the first quarter”.
The survey predicts that, in the future, other regional cities will grow in importance as well.
RECORD-BREAKING OCCUPANCY AND PIPELINE FOR REGION’S INDUSTRIAL MARKETS
Cushman & Wakefield has analysed the trends in the industrial property sector in five Central European countries (Czech Republic, Hungary, Poland, Romania and Slovakia) in 2021, and the principal findings are as follows.
Modern logistic industrial space in the region totalled more than 46 million sqm at the end of 2021, which is an increase of more than ten percent over 2020. The largest portion of the stock is still located in Poland (52 percent) and the Czech Republic accounts for more than one-fifth (21 percent) of the area. Romania comes third (12 percent), followed by Hungary (9 percent) and Slovakia (7 percent).
“If we restate the figures in relation to the population, the Czech Republic leads by a large margin with 902 sqm per thousand inhabitants, an approximately 6 percent increase over the preceding year. Poland comes second with 625 sqm per thousand inhabitants,” said Cushman & Wakefield.
Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield, commented: “Poland recorded the greatest year-on-year increase in industrial space; approval procedures that are markedly faster than in the Czech Republic help the pace of development in the country. In addition, there are fewer locations suitable for new development in Czechia than in Poland, which has a greater area and mostly flat terrain.”
Major players cover the majority of the market, the lion’s share belongs to CTP (13 percent), Prologis (10 percent), Panattoni (8 percent), P3 Logistic Parks (7 percent) and SEGRO (4 percent), totalling approximately 42 percent of the entire market.
Last year, Panattoni was responsible for the greatest share of development in the region – the international company completed almost two million sqm of new logistic space.
