Coffee with Craig Show – daily CRE news covering the CEE region – Wednesday, May 4 with Winston Norman, Editor and Chief of EuropaProperty.com.
CUSHMAN & WAKEFIELD HAS SUMMED UP THE INVESTMENT MARKET IN THE CEE REGION
The CEE real estate investment market has been on the radar of many market watchers over the past year. But the war in Ukraine, inflation uncertainty, increasing construction costs, and fast-changing interest rates have all taken their toll on the region. The real estate market has nevertheless proven resilient, with several large transactions in the first quarter of 2022. EPP’s acquisition of the M1 retail portfolio and landmark transactions (e.g. The Warsaw Hub in Poland) have contributed to high volumes in the first quarter – otherwise typically a low point of the year.
“The war in Ukraine has delayed some deals leading to overall smaller volumes. Despite this interrupted momentum, continuing over from Q1, we observe some liquidity returning to retail – a trend we expect to continue. Commercial real estate investment transaction activity is likely to remain slow during Q2 with a subdued market. Agreed deals are being closed but they are considered “fragile” in the light of the regional economic slowdown, inflation, and uncertainty. The fragility of the CEE real estate investment market is most acute in the sector most dependent on rental growth – industrial. As rental growth continues over the coming months, we expect to see pent-up capital being more easily deployed. This should boost deals in the region, particularly in the industrial sector” said Jeff Alson MRICS, International Partner and Head of CEE Capital Markets in Cushman & Wakefield.
CPI, KARLIN GROUP AND DPP TO BUILD NEW DISTRICT IN PRAGUE 7
The Prague Public Transport Company (DPP) has signed an agreement with investors from CPI Property Group and Karlín Group and together they will build the Nové Holešovice district in Prague 7.
The Nové Holešovice district will be built in Prague as a joint work of investors from CPI Property Group, Karlín Group and the Prague Transport Company (DPP), which owns the land for the construction. The development is to be built around the Nádraží Holešovice metro station. It will start with the reconstruction of the northern vestibule of the metro station, above which flats, offices and shops will be built. In the first phase, 2.5 hectares should be developed and further stages are still being planned, as negotiations are still underway with Czech Railways (ČD), the Railway Administration and companies for the surrounding plots.
”This will be the beginning of a major project that will be created together for the first time by the city and the private sector. We are now preparing, with the support of the city, an international architectural workshop for the first phase. We would like to announce it later this year,” said Serge Borenstein, founder of the Karlín Group.
“Together with the Karlín Group and the transport company, we have the opportunity to build a really strong and functional joint venture that also fulfils the transport company’s original intentions,” said CPI executive director Zdeněk Havelka.
PANATTONI LAUNCHES ITS LATEST PARK IN THE KRAKÓW REGION
Panattoni is developing another complex in the Kraków region – Panattoni Park Kraków North, with an area of 55,000 sqm. The first tenant has already been secured for the park: Trivium Packaging – a global leader in the production of metal packaging, which will transfer its existing chemical packaging operations to its new 21,000 sqm premises at the beginning of 2023. Panattoni has now developed approaching 200,000 sqm of industrial space in the Kraków region.
“The Kraków market, although much smaller than Poland’s largest markets, nevertheless has significant international potential,” explains Filip Noworól, Senior Leasing Manager at Panattoni
OTP BANK ROMANIA GRANTS FINANCING FOR THE CONSTRUCTION OF FUNSHOP PARK TURDA
OTP Bank Romania has granted €8 million in financing to retail property investment company Scallier, for the construction of Funshop Park Turda. The Funshop Park Turda retail project will provide around 9,000 sqm of lettable commercial space resulting in a retail gallery of 18 store units.
OTP Bank Romania has also previously financed the development of the Funshop Park Focșani, inaugurated last year, the second retail project of Scallier in Romania after first developing the Roșiori de Vede project in 2021.
“With this interesting retail project, we now mark another stage in our local partnership with Scallier. It shows a sustainable business model adapted to the times, bringing safe and modern retail into active medium-sized towns such as Turda, and shows great care regarding its environmental impact on the community,” said Gyula Fatér, CEO OTP Bank Romania.
“We are actively developing new projects and searching the Romanian market in the context of new investment opportunities, so we hope to continue cooperation in terms of other real estate developments,” says Wojciech Jurga, Managing Partner at Scallier.