Coffee with Craig Show – daily CRE news covering the CEE region, Tuesday, May 31 with Winston Norman, Editor and Chief of EuropaProperty.com.
S Immo reports strong operating performance in first quarter
S IMMO has reported a strong operating performance for the first quarter of 2022. Bruno Ettenauer, CEO of S IMMO AG, had the following comment on the results: “The first quarter was relatively unaffected by the effects of the war in Ukraine and the start of the interest rate turnaround. With sales revenues up by around 33 percent, we once again succeeded in increasing net profit for the period to €24.1 million.”
In the first quarter, the operating result increased significantly and gross profit rose by around 28 percent to €29.8 million. Revenues climbed by around 33 percent to €57.0 million. This development is attributable to the increase in rental income and revenues from operating costs and to the rise in revenues from hotel operations.
The focus is now once again entirely on the core business of acquiring, letting and managing profitable properties to strengthen cash flow in the long term.
Herwig Teufelsdorfer, CIO of S IMMO AG, noted: “The geographical diversification of our portfolio has proven to be extremely resilient to crises, which is why we want to maintain it in the same constellation as in the past.”
Friedrich Wachernig, COO of S IMMO AG, said: “The war in Ukraine and the interest rate turnaround that has been underway since the first quarter have created an environment that is significantly more uncertain than at the end of 2021 in many respects.”
Xior acquires Basecamp portfolio comprised of 11 prime PBSA assets
Xior Student Housing has signed an agreement with Basecamp Group, European Student Housing Fund I (“ESHF I”) and European Student Housing Fund II (“ESHF II”) to acquire a €939 million portfolio of attractive, high-quality, PBSA assets operated by Basecamp. This unique portfolio consists of 5,341 units spread over 11 newly-built assets (8 operational and 3 projects under development). All residences are situated in top-tier student cities in Germany, Poland, Denmark and Sweden.
The acquisition will lead to an increase in the total value of the portfolio to around €3.7 billion and Xior enhancing its profile as the number one student housing platform in continental Europe with a portfolio of 26,526 units and a presence in 43 top-tier university cities in 8 countries, serving a target market of 8.5 million students.
Christian Teunissen, CEO of Xior, commented: “With this milestone acquisition of Basecamp, we will continue our growth story by adding not only 3 new countries but also 11 state of the art, sustainable assets which are a perfect fit for our existing portfolio and future vision and will further strengthen our position as the market leader in continental Europe.”
Armon Bar-Tur, Executive Chairman of Basecamp, said: “Xior and Basecamp will revolutionise the PBSA market by bringing together our complementary portfolios of properties. We will offer students across Europe the opportunity to live in inspiring rooms and life-enriching shared spaces. Our teams are delighted to come together and continue the exciting evolution of PBSA.”
Over 5.7 million sqm of new European office space expected for 2022
According to Savills latest research, over 5.7 million sqm of new office space will be completed in Europe in 2022, of which 49 percent is currently pre-let. In Warsaw, Savills forecasts that a rebound in demand and an undersupply of new office stock will translate into visibly shrinking availability.
Mike Barnes, Associate Director, Savills Commercial Research, comments: “Occupiers’ appetite for new, energy-efficient space continues to grow to meet self-imposed 2030 carbon emissions targets. Rising energy prices will further accelerate the demand for more energy-efficient office buildings.”
Christina Sigliano, Savills EMEA Head of Occupier Services, says: “The next big question comes with what happens to secondary office stock amid obsolescence risk and how much landlords are willing to invest to ensure their buildings are still lettable.”
Karol Grejbus, Associate Director, Tenant Representation, Office Agency, Savills Poland, comments: “Rising construction and fit-out costs and a rise in utility charges are some of the challenges facing the Polish office market. At the same time, more and more employees are returning to the office and companies are resuming lease decision-making and looking for a head office for years ahead.”
JD Sports debuts in Warsaw at Atrium Targówek
JD Sports, a British chain, has joined the tenants at Atrium Targówek by opening its first store in Warsaw. Customers can enjoy nearly 700 sqm of modern shopping space, with a wide range of top brands’ footwear & apparel, including those not yet available in Poland.
The global British chain JD Sports is the domain of premium products such as Nike, Lacoste, Adidas, Vans, Timberland, The North Face and many more. Now, JD Sports has nearly 3,300 stores, in 29 countries around the world.
“JD Sports opens its first store in Warsaw by joining our tenants and making an excellent addition to the ranges offered at Atrium Targówek,” said Anna Tana, Leasing Team Leader (Retail), Atrium Poland Real Estate Management.
