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.
Strong Investment Growth in the Czech Republic
In the second quarter of 2024, €465 million was invested in commercial properties in the Czech Republic, with 77% of the funds coming from local investors. Office spaces were the top investment choice, followed by residential and industrial properties. A major deal was the €140 million purchase of Wenceslas Square 42 by the City of Prague to become the new City Hall. Despite some economic concerns, investment activity remains strong, and total investments for 2024 could exceed €1.4 billion.
Although several geopolitical and economic threats remain, investor activity in the Czech market is ensuring that deals continue to be done. Given the lack of supply of rental housing in Prague, continued interest in build-to-rent (BTR) residential products can be expected. In more traditional investment sectors such as office and retail, investors seem to be more inclined towards “Core+” and/or “Value-Add” opportunities. Whereas in the industrial real estate sector, deals have closed or will soon be announced that are at premium yields in terms of yields.
Crestyl Expands Residential Project in Prague
Crestyl has completed two new residential buildings in its Hagibor development in Prague. The Gamma building, with 138 apartments for sale, is 80% sold, while the Delta building, with 168 rental apartments, was bought by Invesco Real Estate. A new phase, the Kappa building, will start construction next year, adding 253 more apartments. The entire Hagibor project, which also includes office buildings and public spaces, will cost over CZK 9 billion (€360 million).
Panattoni Opens New Logistics Park in Warsaw
Panattoni has finished building City Logistics Warsaw IX, a new logistics park in Warsaw’s Targówek Fabryczny area. The 13,000 sqm facility is already attracting tenants, including food distributor Inter-Mlecz and medical products distributor GESPAR. The park is designed for urban logistics and e-commerce, with plans to add solar panels on the roof in the future. Panattoni highlights the park’s strategic location for quick last-mile deliveries and customisable spaces for tenants. “This is a place where technology and access go hand in hand to meet the challenges of modern urban logistics”, says Karolina Przygoda, an Associate Leasing Director at Panattoni.
Mitiska REIM Sells Spanish Retail Park to Hungarian Investor
Mitiska REIM has sold the Portal Mediterraneo retail park in Vinaros, Spain, to Hungarian investment firm Gestor Real Estates. The sale, facilitated by Savills and Danubio Homes, marks the 38th retail park sale by Mitiska REIM in the past nine months, generating over €500 million in sales. Gestor Real Estates plans to expand its portfolio in Spain, citing the country’s economic growth and strong demand for retail spaces as key factors in its investment strategy.
