CTP reported rental growth of 4.8 percent in the first quarter across its investment portfolio in European markets.
Key Highlights include CTP’s highly profitable development programme continued in line with expectations in Q1 and remains well-positioned to capitalise on the strong occupational demand and low vacancy rates within the Group’s core markets.
Net rental income rose 37 percent to €107.2 million in the first three months of 2022. For projects under construction at the period end, CTP’s market-leading yield-on-cost was a solid 10.2 percent. The Group’s owned investment property portfolio grew to 9.3 million sqm of GLA following the integration of Deutsche Industrie REIT-AG into CTP’s consolidated financial and operational metrics in February 2022.
Remon Vos, CEO said: “We entered 2022 focused on capitalising on the significant expansion momentum the Group achieved last year but are now closely monitoring for any impact arising from the accelerating macroeconomic headwinds and the war in Ukraine. To date, CTP has not experienced any material effects following Russia’s invasion, however, the conflict has compounded construction supply chain disruptions that arose during the pandemic and ignited inflation to the highest levels in decades.”
Warsaw among the most environmentally sustainable office markets in the world
Warsaw has over 40 percent of its total office stock certified ‘green’, making its office markets one of the most environmentally sustainable in the world, according to Savills World Research.
Katarzyna Chwalbińska-Kusek, Head of ESG & Sustainability at Savills Poland, comments: “We should remember that by 2030 all new commercial buildings will have to reach net-zero, followed by all buildings in 2050. The biggest challenge is that over 85 percent of existing buildings will still be with us in 2050 when Europe aims to be climate neutral.”
“As highlighted in the recent report from the UN’s Intergovernmental Panel on Climate Change, some of the most established office locations face the biggest challenge given they need to retrofit existing stock in an environment of rising construction costs. Meanwhile in less mature markets, typically those in the Middle East, Africa and India, there’s an opportunity to add new environmentally-compliant buildings from the outset.”
Chris Cummings, Savills Earth director at Savills, adds: “The future upgrade of office stock will be driven both by occupiers and investors. There is strong competition in the investment market for office buildings with high green credentials and pricing for these assets is keen.”
BPI Real Estate obtains building permit for project in Warsaw
BPI Real Estate Poland has received a building permit for an investment project on Chmielna Street in Warsaw. The latest project in the developer’s portfolio involves the construction of two modern buildings with 243 apartments with a total area of 11,335 sqm. The investment is located in the very centre of the capital, opposite Varso Tower – the tallest office building in Europe.
“After the success of our previous investments in Warsaw, the time has come for other locations. By the business strategy adopted by our company, the investment will be implemented in the spirit of sustainable development and the concept of a modern city in 15 minutes,” said Béranger Dumont, General Director of BPI Real Estate Poland.
The completion of the investment is scheduled for the second half of 2024.
myhive Haller Gardens renewed in Budapest
IMMOFINANZ has finalized the complete modernization of the myhive Haller Gardens in Budapest. The building has been renewed and new services have been introduced to maximize flexible working and the versatile use of the community spaces in the office building.
As part of the modernization, the facade has been renovated, and the whole building has been given modern and sustainable interior and exterior lighting, furthermore, the reception areas and the gardens around the building are now available to tenants in a new concept and renewed form.
“myhive Haller Garden does not only offer the highest quality standards but also a completely new atmosphere, with new features and the introduction of flexible solutions to serve tenants to the maximum,” said Ottó Vörös, Country Manager Finance & Support, IMMOFINANZ Hungary.
IMMOFINANZ was quick to recognize the new trend in the office market, and the need for flexibility, and was one of the first to respond with the new myhive office products. The company’s serviced office, mycowork offers 1,000 sqm of fully furnished, flexible turnkey office space.
Forward deal in Vienna Twentytwo successfully completed
Christie & Co was commissioned by the project developers SIGNA Group and ARE Development to find a suitable buyer for the Bassena Hotel Wien Donaustadt, which is currently under construction in “Vienna Twentytwo” urban neighbourhood development. Raiffeisen Immobilien KAG, a solid buyer was quickly found and the transaction was successfully concluded.
The “Vienna Twentytwo” urban quarter, which is currently under construction as a joint venture project of the SIGNA Group and ARE Development, is located directly at the U1 station “Kagran”. In addition to office buildings, 220 serviced apartments and a residential tower with 600 units, a nearly 200-room Bassena Hotel, a brand of the Austrian Verkehrsbüro Group, will also open there in the future.
“The last few months show that interest in hotel real estate is currently increasing strongly again and that solid concepts and operators are attractive in the long term,” comments Simon Kronberger, Director Austria & CEE at Christie & Co, who accompanied the sale with his team.