Coffee with Craig Show – daily CRE news covering the CEE region, Friday, July 1 with Winston Norman, Editor and Chief of EuropaProperty.com.
Echo sells four office buildings in Poland for €157 million
MidPoint71, an office building in Wrocław, was acquired by Trigea Real Estate Fund from the Czech Republic. The project by Echo Investment, which obtained the occupancy permit earlier this year, was sold for over €100 million. In another deal, three office buildings in Fuzja Łódź project were acquired by KGAL Group for over €56 million.
MidPoint71 is around 80 percent leased by 3M GSC Poland, Pyszne.pl, PwC, CitySpace, CCC Group, and Electrolux Poland. The building is expected to be fully leased in the coming months. MidPoint71 is Echo Investment’s seventh office project developed in the city.
“Wrocław is one of the strongest markets of the regional cities in Poland and continues getting interested from both tenants and investors,” says Małgorzata Turek, Board Member responsible for divestments at Echo Investment.
Three buildings acquired by KGAL Group are an integrated part of the mixed-use Fuzja project in Łódź. They are fully leased and encompass 22,000 sqm of BREEAM-certified office space.
“Fuzja office buildings, thanks to their quality and reputable tenants, are proving their long-term value and are an excellent asset for the strategic investor,” comments Adam Scheitza, Transaction Manager of KGAL Investment Management.
Investors continue to choose Poland
JLL Poland together with partners, Polish Investment and Trade Agency, Hays and ALTO have released the report: “Made in Poland” – the report aims to provide investors and manufacturers with essential and up-to-date information as well as guidance on industrial investments in Poland.
The industrial real estate market in Europe is steadily hitting new heights. In the difficult years of 2020 and 2021, it proved its resilience and key importance to the global economy.
“The crisis in Ukraine has further added to the level of uncertainty in the region. In the longer term, major global manufacturers are likely to consider expanding in Europe to reduce the risks associated with supply chain impediments. Moreover, in some cases, manufacturers have started to adopt a just-in-case strategy, replacing the commonly adopted just-in-time approach,” says Maciej Kotowski, Senior Analyst, JLL Poland.
According to the report, 2021 was a record year in terms of investments in Poland. With the support of the Polish Investment and Trade Agency, foreign companies invested over €3.5 billion in Poland.
“This is €800 million more than last year and €700 million more than the previous record set in 2019. Behind these numbers not only lies money but also 18,000 new jobs,” says Monika Grzelak, Deputy Director Centre for Strategic Investments, PAIH.
Manufacturers from all over the world see numerous advantages when deciding to invest in Poland. The country has a favourable location on the European continent and modern transport infrastructure, connecting the region’s major main cities. As well as Poland’s geographical location, the country has also increased its competitive advantage thanks to attractive costs of doing business and public investment incentives.
Accolade plans to invest over CZK 6 billion in the Karlovy Vary region
Accolade Group, an investor in modern industrial real estate, has announced an investment of over CZK 6 billion in the Karlovy Vary Region. Accolade’s portfolio currently includes two industrial parks with a total of five buildings and thirteen tenants. Three more buildings are in preparation or under construction. So far, the group has financed the development of approximately 250,000 sqm of industrial and logistics space in the area, the value of which exceeds CZK 5 billion.
“Besides building modern, functional and sustainable buildings, an industrial real estate investor should always strive to care for the immediate neighbourhood of their projects and the wider community,” said Milan Kratina, CEO of Accolade.
Accolade Group launched its activities in the Karlovy Vary Region in 2013. These days, the Karlovy Vary Region is perceived by investors and businesses as a region full of opportunities with great development potential, also thanks to its industrial tradition and good transport connections to Prague and Germany.
Accolade’s largest investment in the Karlovy Vary Region so far is the industrial park near Cheb, worth CZK 4.3 billion. The park’s tenants include multinational companies such as Tchibo, DHL, BWI, TFS and Nexans.
Myhive Atrium Park is 100 percent leased
Thanks to successful new and extended leases, myhive Atrium Park, located on Váci út, has leased its entire 31,200 sqm office space. The success is due to the good location, the wide range of services and the newly introduced popular and flexible office services.
As one of the flagship buildings of the myhive brand, the myhive Atrium Park in Budapest has consistently enjoyed high occupancy rates, where the company’s international office concept has been successful and popular from the beginning. In response to tenant demands, several new services have been introduced.
Changes in recent years have created a strong demand for flexible office products, and the company has developed myoffice in response. This offers dedicated office space with unique amenities that can be moved in immediately, tailored to the client’s needs, in a flexible construction.
“In addition to the myoffice and mycowork services, our tenants can of course enjoy the full myhive service package of the office building: excellent infrastructure, common areas and additional amenities for all myhive members”, said Ottó Vörös, Country Manager Finance & Support, IMMOFINANZ Hungary.
