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.
Hines Research Sees Opportunities in the Retail Sector
Global real estate investment manager Hines sees potential in the retail sector, which has faced challenges like the rise of e-commerce. A new report titled “Retail’s Next Act” highlights strong fundamentals in many markets, making retail an attractive investment opportunity. Key points include:
Limited new construction in Europe since 2017. Rent growth in luxury retail areas, especially in cities like Milan and London. Grocery-anchored retail centres outperform competitors. Tourism-driven retail markets are recovering well post-COVID. Retail is “right-sizing” to match new demand and positive economic trends like wage growth are boosting consumer spending.
“We believe a new era for certain types of retail is here,” said David Steinbach, global CIO of Hines. “Retail fundamentals appear strong in many markets around the world, creating a powerful case for real estate investors to pay close attention to this sector.”
Newgate Investment Acquires Retail Park in Zgorzelec
Newgate Investment has purchased a retail park in Zgorzelec, Poland, with a gross leasable area of 5,488 sqm. The retail park is fully occupied by popular stores like Rossmann, Pepco, and Woolworth. NGI is also negotiating further property acquisitions as part of its strategy to double its portfolio value in the next 2-3 years. With this latest purchase, NGI’s portfolio includes 32 properties, totaling nearly 150,000 sqm, and boasts almost 100% occupancy. NGI plans to invest in both new and older retail parks to add value through expansion and redevelopment.
“Retail parks are assets that offer a satisfactory rate of return while limiting risks compared to large-scale shopping malls or cost-intensive office buildings, hence financial institutions are looking at them more and more favourably,” says Krystian Modrzejewski the Investment Director at Newgate Investment.
CTPark Warsaw South Earns BREEAM ‘Excellent’ Certification
CTPark Warsaw South, a production and logistics complex, has received the BREEAM ‘Excellent’ certification for two new warehouses. The certification highlights the eco-friendly design and construction of the facilities, with a score of 75.2%. This is the fifth and sixth facility in CTP’s Polish portfolio to receive this recognition. Located between Warsaw and Łódź, the complex offers over 199,000 sqm of rental space, with companies like TAS Logistyka and Fiege already operating there.
“The pro-environmental solutions implemented at our CTParks allow our business partners to develop their operations while respecting the environment and at the same time upholding the comfort of their users,” says Bogi Gabrovic, Director of Client Relations & Corporate Affairs at CTP Poland.
