Coffee with Craig Show – daily CRE news covering the CEE region, Monday, November 6, with Winston Norman, Editor and Chief of EuropaProperty.com.
CEE sees 59% decline of investment volumes in Q1-Q3 2023 says Colliers
At €3.2 billion for Q1-Q3 2023, CEE investment activity is at a 10+ year low (down 59% year-on-year). The pricing gap between buyers’ and sellers’ expectations remains a significant barrier to seeing volumes return to the 5 and 10-year average levels of €10-11 billion. However, real estate fundamentals in CEE remain fairly robust. Lower levels of vacancy are being recorded and some good levels of rental growth in certain sectors have been noted, reveals Colliers in its latest report.
Kevin Turpin, Regional Director of Capital Markets, CEE, says: “Construction prices in the CEE region remain elevated, but stable, and may even be falling slightly. In addition, land in some of the most sought-after locations is scarce and more expensive making development more difficult to deliver given the development-to-exit yield spread being too narrow. Labour costs are also under upward pressure. All of which may lead to higher sales and/or rental prices, or reduced pipelines, and could eventually lead to undersupply in some markets and sectors”.
Worklounge acquires City Point in Prague from Amundi
Coworking and serviced office operator WorkLounge has completed the acquisition of the City Point office building in Prague. It is taking over the building from the investment company Amundi. Mint Investments was the investment advisor to Amundi. Representatives of Savills, Cushman & Wakefield and Havel & Partners also participated in the transaction. The value of the transaction exceeded 450 million Czech crowns.
Lubomír Šilhavý, CEO of WorkLounge, said: “This acquisition represents the latest addition to our private real estate portfolio and will soon become the new home of our sixth branch of WorkLounge, a family-owned chain of serviced office and co-working spaces based in Prague.”
Stuart Jordan, CEO of Savills CEE, adds: “The depth of corporate and private occupiers in the immediate surroundings are testament to the continuing popularity of the submarket, whilst the addition of WorkLounge to the existing amenity base in City Point will be an attractive option for existing and new clientele.”
Crestyl takes control of Spravia
Czech developer and investor, Crestyl has completed the acquisition of the remaining 50 percent stake in Spravia from Cornerstone Partners, giving it full control of the company. This transaction will enable the integration of Spravia into the Crestyl Group and help it grow in Poland and the Czech Republic. Spravia is currently developing 53 projects out of which 16 are under construction. Together with Crestyl, the total portfolio will have 70 projects in Central Europe.
“The transaction two years ago was a milestone in Crestyl’s evolution and our first step abroad. At the same time, we needed a local partner who was familiar with the Polish market. Poland is a key part of our future – we want it to continue to grow significantly and we intend to support it in doing so,” says Omar Koleilat, co-founder and CEO of Crestyl Group.
“The Spravia platform has a long history of timely and quality delivery, and we want to build on it and develop it further,” adds Simon Johnson, COO of the Crestyl Group.
Hagag Development starts first retail project in Bucharest
Real estate investor-developer Hagag Development Europe started the construction works for the restoration of Știrbei Palace in Bucharest. H Știrbei Palace will be the company’s first retail project – a concept designed to meet the needs of the premium market segment.
“The project has already attracted the interest of some very prominent brands operating in the luxury goods market, and I am delighted to confirm that we are currently in advanced discussions with these brands’ representatives, whose consolidated demand covers almost 90 percent of the leasable area,” says Yitzhak Hagag, Co-founder and Controlling shareholder of Hagag Development Europe.
Classified as a class A historical monument, Știrbei Palace is nested in the heart of Bucharest and is considered to be an invaluable and representative building for the architectural, cultural, and historical heritage of Romania’s capital city.
Happy Cinema to launch multiplex cinema within Colosseum
Colosseum Mall and Happy Cinema have officially confirmed their partnership to launch a premium multiplex cinema within the mall premises. The joint venture will feature five screening rooms accommodating around 400 seats.
Ecaterina Mateescu, from Happy Cinema, commented, “2023 was the year in which the audience’s presence in cinemas approached the level of the pre-pandemic period, and we also began the development of our network outside Romania. We initiated this expansion with a location in the Republic of Moldova and intend to further expand our network in Bulgaria, Serbia, and Hungary,”
“The past few years have brought about a series of novelties regarding our customers’ preferences, many of which are reflected in the further development strategy of Colosseum Mall,” added Mihai Dinu, General Manager of Colosseum Mall.
Kaufland.sk and Kaufland.cz on course for successful start
At the beginning of this year, Kaufland Marktplatz was launched for the first time outside of Germany. In Slovakia, Kaufland.sk has already climbed to the top position in the marketplace website ranking. In the Czech Republic, over 4,000 retailers already offer their products on Kaufland.cz.
According to surveys, 77 percent of Slovakian and 72 percent of Czech customers are already familiar with Kaufland’s online marketplaces. The top sellers in the product range in recent months have been pools and paddleboards, but products in other categories such as electronics, DIY, kitchen and household and furniture are also in high demand among customers.