Join Craig Smith and Winston Norman on the Coffee with Craig Show for your daily dose of CRE news in the CEE region, brought to you by EuropaProperty.com.
NEPI Rockcastle Sees Strong Growth in the First Half of 2024
NEPI Rockcastle reported a 13.5% increase in net operating income, reaching €274 million in the first half of 2024. This growth was driven by higher tenant sales, which rose by 8.7%, and an 8.2% increase in the average basket size. The company’s rents also outpaced inflation, contributing to a €134 million valuation gain. NEPI Rockcastle’s distributable earnings per share grew by 5.6% to 30.12 eurocents. The company plans to expand its Promenada Bucharest project by 2026, develop new residential areas in Romania, and invest €100 million in solar energy projects. NEPI Rockcastle’s portfolio is valued at €7 billion across nine Central and Eastern European (CEE) countries.
“Tenant sales increased across all retail categories in our shopping centres, underlining the attractiveness of our locations and the resilience of the CEE consumer. Base rents and turnover rents are going up while recoveries of operating costs and the occupancy cost ratio remain at sustainable levels,” says Rüdiger Dany, NEPI Rockcastle’s CEO.
Bucharest Hotel Market Set for Major Expansion by 2026
Bucharest’s hotel market is on track to add 2,400 new rooms by 2026, marking a 5.8% increase in supply, outpacing other Central and Eastern European capitals, according to a Cushman & Wakefield report. The city’s hotel occupancy rose by 3.4% in the first half of 2024, bolstered by Romania’s recent entry into the Air Schengen Area. As a result, Bucharest is expected to exceed pre-pandemic levels of overnight stays by 2025. The market is also seeing investment activity, with 400 hotel rooms currently for sale and €20 million in transactions recorded in the first half of 2024.
“Bucharest has faced numerous challenges in recent years; however, the city’s hotel performance has shown a healthy recovery, with RevPAR growth in H1 2024 surpassing the European average,” says Sevda Cadir, Associate Director Cushman & Wakefield.
GLP Expands Presence in Upper Silesia with New Project
GLP is set to launch a new 40,000 sqm logistics park in Upper Silesia, Poland. The project, GLP Park Lędziny II, will be located near the A4 motorway, a key transport route, and will feature sustainable elements like a solar-ready roof and smart metering. This will be GLP’s second project in Lędziny and its sixth in the Upper Silesia region, reflecting its commitment to providing top-tier warehouse spaces in high-demand areas. The development is expected to achieve BREEAM ‘Excellent’ certification, highlighting GLP’s focus on sustainability and green infrastructure.
