BIG Dzierżoniów Opens Retail Park in Lower Silesia

Developed by Redkom Development, BIG Dzierżoniów officially opened on May 21, attracting visitors from the city and surrounding towns across the region.

The retail park is located on Batalionów Chłopskich Street in Dzierżoniów, adjacent to the Silesiana roundabout. The scheme benefits from direct access to the DW384 regional road linking Dzierżoniów and Bielawa.

Offering nearly 17,000 sqm of gross leasable area (GLA), BIG Dzierżoniów comprises more than 30 retail units across fashion, grocery, health and beauty, electronics, homeware and services.

Lidl serves as the grocery anchor tenant, while the fashion segment includes brands such as CCC, HalfPrice, Reserved, Cropp, House, Sinsay, New Yorker, Diverse, Big Star and Ochnik.

The tenant mix also includes Rossmann, RTV Euro AGD and Douglas, alongside operators such as Pepco, Martes Sport, Apart, Koku Sushi and Tauron, which is expected to open a customer service point at the scheme.

The commercialisation process for BIG Dzierżoniów was handled by Mallson Polska. The project was delivered by Trasko Invest as general contractor, based on a design prepared by ALFA Pracownia Projektowa.

BIG Dzierżoniów is the first of five retail park projects planned by Redkom Development for delivery in 2026. The developer is also preparing to open Comfy Park Bydgoszcz on May 27, a project being developed in partnership with Newgate Investment.

Located on the site of the former Carrefour Glinki store, Comfy Park Bydgoszcz will provide 16,000 sqm of GLA in its first phase, with additional expansion planned.

Further projects under development by Redkom include Świderek in Otwock, a mixed recreation and retail scheme in Lublin, and a retail park project in Białystok.

HIH Invest Sells Dresden Office Property to SK Group

HIH Invest has sold an office property in Dresden’s Waldschlösschen district to SK Group in an asset deal transaction.

The office complex, located at Am Waldschlösschen 2 and 4/Am Brauhaus 5 in the Radeberger Vorstadt district of Dresden, had been held in a fund managed by HIH Invest since 2020. Constructed in 1996, the five-storey property is arranged around three landscaped courtyards and is almost fully let.

The building provides 12,769 sqm of lettable office space alongside 252 underground parking spaces. The multi-tenant asset benefits from its location near Dresden’s Neustadt district, with access to the city centre and regional transport connections via the B6 highway.

“We successfully placed this attractive building complex on the market for our investors at a competitive price,” said Daniel Asmus, Head of Transaction Management Office Germany at HIH Invest. “The location offers an established, quiet, yet very well-connected working environment. Public transport and shops for daily needs are within easy walking distance.”

The sales process was handled by Colliers in Dresden, while Ashurst LLP in Frankfurt am Main advised the seller on legal and tax matters.

Walter Herz Strengthens Tenant Representation Team with Appointment of Zlatina Mikołajczyk

Walter Herz has expanded its office tenant advisory team in Warsaw with the appointment of Zlatina Mikołajczyk as Associate Director in the Tenant Representation department.

In her new role, Zlatina Mikołajczyk will be responsible for office relocation and lease renegotiation projects, representing clients during lease negotiations and coordinating leasing processes managed by the company.

Mikołajczyk brings more than 15 years of experience across Poland and Central and Eastern Europe. Her background includes advising international companies entering the Polish market, with a focus on businesses from Asia.

During her career, she has supported Korean banks, engineering companies and state-owned enterprises expanding into Poland. She has also advised Japanese companies operating in the electronics and financial sectors, as well as a Chinese company active in electromobility. In addition, she worked on the introduction of BLD, a company owned by Bulgarian holding AG Capital, to the Polish market.

Her experience also includes developing sales processes, client acquisition strategies and projects related to business expansion across Central and Eastern Europe.

Before joining Walter Herz, Mikołajczyk worked with organisations including ITRA Polska, ForLogistic, EuropaProperty.com and Investment Environments. She also worked at the Trade and Investment Section of the Embassy of the Republic of Poland in Sofia, supporting Polish companies expanding into Bulgaria and coordinating trade missions.

“Developing our Tenant Representation expertise remains one of our strategic priorities. Zlatina’s appointment strengthens our capabilities in servicing international clients carrying out expansion and relocation projects in Poland. Her experience in working with foreign investors, combined with her understanding of the specific characteristics of the CEE and Asian markets, represents significant value for our clients and for the company’s further growth,” said Magdalena Zagrodnik.

“Polish office market remains an attractive destination for international companies seeking a stable and promising environment for business growth. Joining the Walter Herz team gives me the opportunity to further support clients in projects related to expansion, relocation, and office space optimization. I am pleased to develop these competencies within an organization with such a strong market position and a partnership-based approach to business,” said Zlatina Mikołajczyk.

Kamco Invest: Middle East Conflict Adds Inflation Pressure Across GCC Economies

Inflationary pressures across the Gulf region have intensified following the escalation of conflict in the Middle East, according to a new report released by Kamco Invest. The report said disruptions to global energy and commodity markets have contributed to a renewed rise in inflation expectations worldwide, reversing part of the disinflation trend seen over the past two years.

According to the report, the International Monetary Fund has raised its forecast for global inflation to 4.4 percent in 2026, before moderating to 3.7 percent in 2027. In a more adverse scenario, where oil prices remain close to $110 per barrel due to prolonged supply disruptions, global inflation could rise to 5.4 percent in 2026 and exceed 6 percent in 2027.

The report noted that energy supply disruptions linked to the closure of the Strait of Hormuz and the wider regional conflict have pushed up fuel and food prices globally. In the United States, inflation accelerated to 3.8 percent in April 2026 from 3.3 percent a month earlier, marking the highest level since May 2023. Eurozone inflation also increased to 3 percent in April, driven primarily by higher energy costs.

Kamco Invest said Gulf economies have so far experienced more moderate inflationary effects than several other emerging markets, although risks remain elevated due to the region’s dependence on imported food and desalinated water supplies. The report added that prolonged disruptions could place additional pressure on food inventories and increase import costs across the region.

The report highlighted that Gulf central banks have broadly maintained interest rates in line with the Federal Reserve System, which kept rates unchanged in April 2026 amid renewed inflation concerns. At the same time, inflation trends within GCC countries have remained mixed.

In Kuwait, inflation rose 2.6 percent year-on-year in April 2026, driven mainly by a 6.3 percent increase in food and beverage prices. Transport prices rose 4.5 percent during the month, while housing services increased at a slower pace of 0.5 percent annually.

Saudi Arabia maintained one of the lowest inflation rates in the region, with consumer prices rising 1.7 percent year-on-year in April 2026. Housing, utilities and fuel costs increased 3.8 percent, supported by higher residential rents, while transport prices rose 1 percent. Food and beverage prices increased 0.6 percent annually.

In the United Arab Emirates, inflation remained relatively stable despite higher fuel prices. Dubai’s annual inflation rate stood at 3 percent in December 2025, while the UAE-wide inflation rate averaged 1.3 percent during 2025, supported by declines in transport and clothing prices that offset increases in housing and financial services costs.

Qatar recorded annual inflation of 2.6 percent in April 2026, led by increases in food and beverage prices, which rose 10.4 percent year-on-year. Bahrain reported one of the region’s lowest inflation levels at 1.1 percent in March 2026, while Oman registered the highest inflation rate among GCC countries at 3.2 percent in April 2026, driven largely by higher food prices, including a 25 percent rise in vegetable prices.

Kamco Invest also noted that global food prices continued to rise moderately in April 2026. The Food and Agriculture Organization food price index increased 2 percent year-on-year, supported by higher prices for meat, vegetable oils and grains. Vegetable oil prices reached their highest level since July 2022 due to stronger demand linked to biofuel production and higher crude oil prices.

Pre-Lease Activity Gains Momentum on Bucharest Office Market as New Supply Expands

The Bucharest office market is showing signs of recovery, supported by a growing number of pre-lease agreements as occupiers increasingly secure office space ahead of project completion, according to data from the latest Cushman & Wakefield Echinox Office Marketbeat Q1 2026 report.

The consultancy notes that the current development pipeline exceeds 215,600 sqm, representing the largest volume of office space under construction in recent years. The increasing level of pre-lease activity is expected to support the gradual absorption of this future supply.

Pre-lease transactions already accounted for two of the five largest office deals signed in the first quarter of 2026, continuing a trend observed in several major transactions completed during 2025.

Total leasing activity in Bucharest reached 49,100 sqm in Q1 2026, with approximately 25% represented by pre-lease agreements tied to projects scheduled for delivery within the next one to two years.

According to Cushman & Wakefield Echinox, pre-leases are becoming an increasingly important tool for developers, allowing them to reduce leasing risk and secure occupancy levels ahead of completion. The report also highlights that 83% of leasing activity during the quarter consisted of net take-up, the highest share recorded since the pandemic, indicating that occupier demand continues to be driven by company expansions and relocations despite ongoing economic uncertainty.

The market vacancy rate continued to decline, reaching 12% compared with 13.6% in the first quarter of 2025. The reduction was supported by the absence of new office deliveries and the continued absorption of existing stock.

Bucharest’s modern office stock remained unchanged at approximately 3.43 million sqm during the quarter, as no new projects were delivered.

Looking ahead, more than 215,000 sqm of office space is currently under construction, with approximately 25% expected to be delivered by the end of 2026.

Among the largest projects under development are Timpuri Noi Square II with 60,000 sqm, ARC Project with 30,000 sqm, AFI Central Tower with 28,000 sqm, Queens District with 23,000 sqm and One Technology District with 20,600 sqm.

These developments are expected to strengthen Bucharest’s main office hubs, particularly the Floreasca–Barbu Văcărescu and Center-West submarkets. The Center area is also expected to become the city’s third office submarket to exceed 500,000 sqm of stock.

Market conditions continue to vary significantly between submarkets. Prime CBD locations, particularly the area between Charles de Gaulle Square and Dacia Boulevard, recorded the lowest vacancy rates at 3%–4%. In contrast, Pipera North reported the highest vacancy level at 36.6%, although the area continues to offer some of the most competitive prime rents in the city at €9–11 per sqm per month.

Infrastructure works currently underway in the Pipera area are expected to improve accessibility and could support occupancy growth in the medium term.

Central and semi-central locations, including Floreasca–Barbu Văcărescu and Center-West, remained the most active leasing destinations, accounting for more than 80% of transaction volumes in Q1 2026.

Prime headline rents in the CBD remained stable at €21–22 per sqm per month, while rents in central and semi-central locations generally ranged between €15 and €20 per sqm per month. Peripheral office locations continued to offer rents between €9 and €13.5 per sqm per month.

Mădălina Cojocaru, Partner Office Agency at Cushman & Wakefield Echinox, said the growing share of pre-lease transactions and the current development pipeline indicate the Bucharest office market may be entering a new growth phase, supported by occupier expansion demand and improving confidence in future market conditions.

Vienna School Project Uses Low-Emission Concrete to Reduce Construction Emissions

PORR and the City of Vienna are using low-emission concrete in the construction of the ZBG Seestadt Aspern vocational school project in Vienna, with projected savings of around 4,200 tonnes of CO₂e over the course of the development.

The educational complex, scheduled to open in September 2028, will provide capacity for up to 7,500 students annually across approximately 42,000 sqm of usable space. The project is being delivered by PORR and its joint venture partner Apleona, with up to 400 workers expected on site during peak construction phases.

As part of the project, PORR is using concrete based on CEM II/C cement for load-bearing structures. According to the company, the material choice, combined with shorter transport routes, contributes significantly to lowering emissions associated with the construction process.

Approximately 36,000 cubic metres of low-emission concrete are expected to be used during construction. PORR estimates that this will reduce emissions by around 4,200 tonnes of CO₂e compared with conventional concrete solutions.

Karl-Heinz Strauss, CEO of PORR, said the savings demonstrate the scale of emissions reductions possible through alternative construction materials and supply chain optimisation.

The project also serves as a testing ground for the wider application of CO₂e-optimised concrete mixtures. PORR noted that alternative concrete formulations can create technical and logistical challenges, including longer curing times and stricter processing requirements. However, the company said these issues have not presented significant difficulties at the Aspern project.

To further reduce emissions, the project incorporates shorter supply chains and local material processing. A mobile concrete plant has been installed on site, while excavated material is being processed at a nearby gravel facility located around two kilometres away and reused in concrete production.

According to PORR, the experience gained through the project will support future applications of lower-emission construction materials in large-scale developments.

Slovakia Transposes EU Pay Transparency Directive into National Law

Slovakia has adopted Act No. 76/2026 Coll. on Equal Pay of Men and Women for Equal Work or Work of Equal Value, introducing into national legislation the requirements of the EU Pay Transparency Directive (Directive (EU) 2023/970). Most of the new obligations will take effect from 7 June 2026.

The legislation introduces a series of new transparency, reporting and compliance obligations for employers operating in Slovakia, covering recruitment processes, pay structures, employee information rights and gender pay gap reporting.

Under the new rules, job advertisements and job titles must be gender-neutral and recruitment procedures must not undermine the principle of equal pay. Candidates must receive information about the starting salary or salary range, as well as any relevant collective agreement provisions, before the job interview or conclusion of the employment contract. Employers will also be prohibited from requesting information about a candidate’s current or previous remuneration.

The law further requires employers to establish an internal pay structure enabling the assessment of whether employees perform equal work or work of equal value based on objective criteria. Where employee representatives are present, these criteria must be agreed with them. Employers established before 7 June 2026 must implement compliant pay structures by 31 July 2026.

In addition, employers must make available to employees the criteria used to determine pay, pay levels and salary increases. These criteria must remain objective and non-discriminatory. Employers with fewer than 50 employees are exempt from the requirement to disclose criteria related to salary increases.

Employees will gain the right to request written information regarding their individual pay level and the average pay levels, broken down by gender, for employees carrying out equal work or work of equal value. Employers must respond within two months. Where information is considered incomplete or inaccurate, employees may request additional explanations, which employers must provide within 30 days.

The legislation also states that employers must inform employees annually about these rights and the relevant procedures. Employees cannot be prohibited from disclosing their own salary information, and confidentiality clauses restricting disclosure of personal pay information will be unenforceable.

The provision concerning average gender pay data will apply for the first time to data relating to 2027.

The new framework also introduces mandatory gender pay gap reporting obligations for larger employers. Companies with 250 or more employees will be required to submit annual reports to the Ministry of Labour, Social Affairs and Family of the Slovak Republic by 15 April each year, while employers with 100 to 249 employees must report every three years. Employers with fewer than 100 employees may report voluntarily.

The first reporting obligations will apply to employers with at least 150 employees by 7 June 2027, covering the period from 1 August to 31 December 2026. Employers with 100 to 149 employees will be required to report for the first time in 2031 for the 2030 reporting year.

A joint pay assessment will become mandatory for employers with at least 100 employees where reporting identifies a gender pay gap of at least 5% within any employee category that cannot be objectively justified and remains unresolved within six months after submission of the report. The assessment must be shared with employees, employee representatives, the Ministry of Labour and, upon request, the Labour Inspectorate and the Slovak National Centre for Human Rights.

The legislation also strengthens employee enforcement rights. Individuals may seek compensation for unpaid remuneration, lost opportunities, non-pecuniary damages and default interest.

In cases where employers fail to comply with obligations relating to pay transparency, reporting or employee information rights, the burden of proof shifts to the employer to demonstrate that discrimination has not occurred.

Failure to submit mandatory pay reports may result in administrative fines ranging between EUR 4,000 and EUR 8,000, while additional sanctions may apply under existing Slovak labour inspection legislation.

Source: CMS

CA Immo reports lower earnings following asset disposals in Q1 2026

CA Immo reported a decline in earnings for the first quarter of 2026, reflecting the impact of a reduced investment portfolio following a series of property disposals completed in 2025 and early 2026. Despite the lower income base, the company maintained a portfolio occupancy rate of 95% and recorded a 2 percent increase in like-for-like annualised gross rental income.

Gross rental income fell by 18 percent year-on-year to €55.9 million, while net rental income declined by 15 percent to €45.8 million. The company said the decrease was largely linked to the disposal of non-strategic assets, which reduced its gross leasable area by 23 percent compared with the same period last year. Lower vacancy costs and operating expenses partially offset the reduction in rental income.

EBITDA for the quarter totalled €33.9 million, down 31 percent from €49.1 million a year earlier. Consolidated net profit reached €16.6 million, compared with €22.5 million in the first quarter of 2025. Recurring earnings (FFO I) declined by 24 percent year-on-year to €25.9 million.

Keegan Viscius, CEO of CA Immo, said the company continued to reshape its portfolio while maintaining stable occupancy levels.

“In Q1 2026, we further enhanced the quality of our portfolio through non-core sales while maintaining a high occupancy rate of 95%. Our leasing business is performing well, and our prime development pipeline is 100% pre-leased with further potential for profitable growth,” he said.

The company signed leases covering around 57,000 sqm during the quarter. CA Immo also noted that 40 percent of the vacant space recorded at the reporting date had already been leased with future commencement dates.

All three of the company’s office projects currently under construction in Berlin are now fully pre-let ahead of completion. These include the Upbeat and Anna Lindh Haus office schemes near Berlin Central Station, as well as the Karlsgärten refurbishment project close to Potsdamer Platz. Upon completion, the developments are expected to generate around €28 million in annualised gross rental income and add approximately €650 million in gross asset value to the portfolio.

Alongside its development activity, CA Immo continued its programme of non-core asset disposals. The company sold eight assets with a combined transaction volume of approximately €205 million during 2026 so far, including three transactions completed in the first quarter valued at €134 million. The disposals included office properties in Budapest, Warsaw and Berlin, in addition to non-core land plots and a parking asset in Germany.

CA Immo stated that the disposals were aligned with its strategy of focusing on high-quality office assets in major urban markets. Germany accounted for 73 percent of the company’s €4.6 billion property portfolio at the end of March 2026, followed by the CEE region with 22 percent and Austria with 5 percent. Office properties represented around 98 percent of the investment portfolio.

The company also reported a strong liquidity position, with cash and cash equivalents totalling €533.2 million at the end of the quarter. The equity ratio improved to 48.4 percent, while net loan-to-value decreased to 33.4 percent.

Looking ahead, CA Immo said it expects continued market uncertainty linked to geopolitical tensions, inflation risks and changing investor sentiment. The company confirmed it would continue concentrating on prime office markets in Germany, particularly Berlin and Munich, while accelerating disposals of non-core assets in the CEE region.

The company said the separation between prime and secondary office assets has become increasingly evident across European markets, with demand remaining focused on centrally located, high-quality buildings.

DIW Study Warns of Declining Competitiveness in Germany’s Research-Intensive Industries

German Institute for Economic Research has warned that Germany’s research-intensive industries are losing international competitiveness, with declines in value creation, productivity growth and global export share since 2015.

According to a new study by the institute, Germany’s traditionally strong sectors in high-quality technology goods, including automotive manufacturing and mechanical engineering, have lost ground compared with international competitors. The study also found that cutting-edge technology industries such as pharmaceuticals and electronics have failed to achieve above-average growth.

“Germany’s economic strength was long based on its research-intensive industries. But this strength is waning,” said Alexander Schiersch from the Entrepreneurship research group at DIW Berlin, who co-authored the report together with Christian Danne from DIW Econ.

The researchers analysed developments in value creation, productivity and global trade shares across research-intensive industries between 2015 and 2024. While many major industrial economies recorded declines, the report states that Germany’s deterioration was more pronounced than in countries such as Japan or South Korea.

In contrast, several smaller European economies, including Denmark, Switzerland and Netherlands, increased their shares of value creation in research-intensive sectors. The study noted that these gains were sometimes driven by individual companies or specialised industries, such as Novo Nordisk in Denmark and the pharmaceutical sector in Switzerland.

“The growing disparity between countries is therefore not based on broad trends. However, the successes of our European neighbors show that it is still possible to generate additional value creation and economic growth through innovation,” Schiersch said.

The report also highlighted weak productivity growth in Germany. Since 2015, labour productivity in Germany’s high-quality technology industries has increased by only eight percent, while productivity in cutting-edge technology sectors rose by 25 percent.

The loss of competitiveness is also visible in international trade performance. Germany’s share of global exports of research-intensive goods has declined by around 15 percent since 2015, according to the study.

“Germany’s success in trade with research-intensive goods was long driven primarily by quality and innovation. This comparative advantage is increasingly at risk,” said Danne.

The authors noted that China increased its share of global exports of research-intensive goods by 22 percent during the same period. However, they also pointed out that several smaller European countries, including Denmark, the Netherlands and Belgium, managed to increase their positions in global trade despite growing Chinese competition.

“Innovation and the development of highly specialized, difficult-to-replace products can increase a country’s share of global trade, despite China’s growing importance,” Danne added.

The study concludes that political action is needed to improve Germany’s industrial competitiveness. The authors identified reducing regulatory burdens, improving public administration and further integration of the European single market as key priorities.

“Less regulation, better public administration, and a less fragmented European single market—without these levers, the competitiveness of German industry cannot be sustainably secured,” Schiersch said.

Deka Immobilien Sells Schönhauser Tor Property in Berlin

Deka Immobilien has sold the “Schönhauser Tor” office and retail property in Berlin-Mitte from the portfolio of its Deka-ImmobilienEuropa open-ended real estate fund to an institutional investor. The parties agreed not to disclose the purchase price.

The eight-storey mixed-use complex at Schönhauser Tor comprises approximately 16,200 sqm of lettable space. Around 14,700 sqm is dedicated to office use, while retail space accounts for roughly 950 sqm. The property also includes 570 sqm of storage space and 124 parking spaces.

The building is currently around 80 percent occupied. Deka Immobilien originally acquired the asset in 1993.

According to the company, the transaction was completed as part of portfolio optimisation measures, with the fund management taking advantage of current market conditions to execute the sale.

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