CPI Europe AG completes disposal of landmark Prague asset

CPI Europe AG has completed the sale of a historic mixed-use property located at Na Příkopě 14 in Prague, marking the conclusion of a long-term asset management cycle.

The building, held by CPI Europe since 2006, comprises approximately 17,200 sqm of lettable space and is considered one of the more prominent office and retail assets in the city’s historic core. The disposal follows a period of active asset management, during which the company repositioned the tenant mix, refurbished the premises and enhanced the building’s overall performance.

The retail component has undergone notable changes in recent years. Previously occupied by Hamleys and later by The Playground, the space is now being prepared for a new flagship fashion tenant expected to open in autumn. Other occupiers include White & Case and Lidl. The property holds an LEED Platinum rating, reflecting its sustainability credentials.

According to Pavel Mechura, the transaction reflects the completion of the investment cycle for the asset and highlights the role of active management in positioning properties for long-term investors.

The Na Příkopě 14 disposal represents CPI Europe’s second transaction exceeding €100 million in April. The company intends to allocate proceeds towards debt reduction and continued investment, with a focus on expanding its STOP SHOP retail park platform across Central and Eastern Europe. Current development activity includes four projects in Croatia, with additional schemes planned in Serbia, Hungary and Croatia for the 2027–2028 period.

Czech Foreign Claims Fall to CZK 12.4bn at End-2025

The Ministry of Finance of the Czech Republic reported that the country’s claims against foreign states totalled CZK 12.4 billion at the end of 2025, a decrease of around CZK 1 billion compared with the previous year.

According to the ministry’s latest report, repayments reached CZK 172.4 million in 2025, up by approximately CZK 20 million year-on-year.

The largest outstanding claim is against Kazakhstan, amounting to CZK 2.9 billion, although the final value of the debt has not yet been agreed. Discussions on its settlement have been delayed, and the Czech authorities are assessing further options.

The second-largest exposure is to Sudan, at CZK 2.8 billion. While the debt has been acknowledged, repayment negotiations are currently on hold due to the country’s political situation.

Other claims are spread across several countries, including Cuba, Ukraine, Iran and Iraq, as well as multilateral institutions such as the International Bank of Economic Cooperation and the International Investment Bank.

Repayments during 2025 were mainly received from Iraq under a 2006 agreement, accounting for CZK 114.4 million. Algeria contributed CZK 50.3 million under a 2024 arrangement, while smaller amounts were repaid by Belarus and international financial institutions.

The ministry’s data do not include so-called special loans, which relate primarily to historical transactions such as military supplies. The most recent available data, from 2018, put these claims at CZK 7.6 billion, mainly linked to Libya and Cuba.

Overall, the figures indicate a gradual reduction in the Czech Republic’s external claims, although repayment progress remains uneven and dependent on bilateral negotiations and political conditions in debtor countries.

Mixed-Use Redevelopment Planned at Galerie Modřany in Prague

A redevelopment project is planned for the site of the former Prior department store in Prague’s Modřany district, where a new mixed-use scheme will combine retail, office and residential functions.

The project, known as Galerie Modřany, is being developed by Prior 12 in partnership with the Prague 12 municipality under a public-private partnership structure. FETTERS management has been appointed to oversee development and project management.

The scheme will replace the existing building with two eleven-storey structures, delivering approximately 8,700 sqm of retail and office space. Plans also include 102 apartments intended for long-term rental and 109 units for sale.

Construction is expected to begin in the second quarter of 2027, with completion targeted for 2029. The project has already received an environmental impact assessment and is currently undergoing further permitting procedures.

FETTERS management has been involved since 2022, providing development management services and representing the investor throughout the planning phase. Its role will extend to overseeing construction, coordinating tenant leasing and managing residential sales and marketing.

“For us, the Modřany Gallery represents not only another multifunctional project, but also an opportunity to participate in the development of an important location in Prague 12,” said Tomáš Fetters.

The development will include a supermarket, retail units, restaurants and office space, alongside residential units ranging from smaller apartments to larger family units. Underground parking and storage facilities are also planned.

According to Petr Šula, the project reflects a collaboration between public and private sectors aimed at upgrading the area and introducing additional services and functions.

The buildings are being designed to meet LEED Silver certification standards, with a focus on energy efficiency and systems such as heat recovery, ventilation and shading.

Capital Park to Begin Revitalisation Project in Central Szczecin

Capital Park Group is preparing to start construction on a residential regeneration scheme in Szczecin, following the appointment of a contractor and the securing of financing.

The project, Rezydencja Aleja Fontann, involves the refurbishment and extension of a late 19th-century tenement building located on Aleja Jana Pawła II. The development is being carried out in cooperation with KOMA as general contractor, while financing of PLN 61 million has been provided by Bank Ochrony Środowiska.

Designed by DEDECO, the scheme will restore the building’s historic features, including its façade and internal staircases, while adapting it for residential use. The property, which has been vacant for over two decades, will offer approximately 5,600 sqm of usable space and accommodate 62 apartments.

The project also includes a contemporary extension intended to reinstate the original roof proportions lost during post-war reconstruction. This will allow for the creation of additional residential space within the attic, bringing the building to six storeys above ground. A two-level underground car park is also planned.

“Revitalisation projects represent a core aspect of our business operations,” said Marcin Juszczyk. “The project in Szczecin aligns with our strategy of restoring historic properties while incorporating modern functions.”

According to the developer, preparatory works have been completed and construction is expected to begin in the coming weeks, with completion scheduled for the final quarter of 2028.

The financing agreement with Bank Ochrony Środowiska also includes an assessment of environmental performance. The project is expected to meet current regulatory requirements for energy efficiency and will be connected to the city’s district heating network.

Sales of the apartments are planned to start in the second half of May.

Sekyra Group Starts Third Phase of Smíchov City Development in Prague

Sekyra Group has begun construction of the third phase of the Smíchov City project in Prague, with total investment estimated at around CZK 5 billion.

The phase will deliver approximately 800 apartments across three residential blocks, roughly double the number completed in the first stage. The development forms part of a wider mixed-use district that has been under construction since 2020.

The third phase is located between Nádražní, Albright and Vacková streets. The first building (SM8), comprising 307 apartments, is already under construction and has been designed by a consortium of architectural studios including A69 – architects, edit architects, Chapman Taylor and L.Z.-Atelier. The apartments will range from smaller units to penthouses.

A second building (SM7), planned to include 264 apartments, is expected to start construction later this year. It has been designed by Siebert + Talaš, Šafer Hájek architects and Pavel Hnilička Architects + Planners. The third building (SM10), with 226 apartments, is scheduled to begin construction in 2028, with design by MS architects, majo architects and Schindler Seko architects.

The Smíchov City project is planned as a large-scale urban district combining residential, office, retail and public space. In total, the scheme is expected to deliver nearly 400,000 sqm of built area, with completion targeted for 2032. The overall investment in the district is estimated at CZK 35 billion, with a further CZK 15 billion allocated to related infrastructure.

Earlier phases of the project have already delivered office and residential buildings, including the Na Knížecí office scheme and two residential blocks with 405 apartments. A final phase is planned along Radlická Street and will include public amenities such as a cultural and sports facility.

The southern part of the development is intended as a business district, including a planned campus for Česká spořitelna and new office buildings for ČEZ, expected to be completed in 2027.

According to the developer, the full project is expected to accommodate around 12,000 people living and working in the area.

Savills expands Poznań presence through mandate at Andersia Business Centre

Savills has been appointed exclusive leasing agent for Andersia Business Centre (ABC) in Poznań, strengthening its position in one of Poland’s key regional office markets. The mandate was awarded in cooperation with Polski Holding Nieruchomości (PHN), the owner of the asset.

Located at Andersa Square in the city centre, Andersia Business Centre comprises approximately 20,500 sqm of Class A office and retail space across five floors. The scheme is approaching full occupancy, with around 1,942 sqm currently available across two units on the third and fourth floors.

The leasing strategy centres on positioning the building as a workplace that integrates business functionality with urban convenience. Its proximity to Stary Browar, alongside nearby hotels, universities and services, supports this positioning, particularly as occupiers continue to prioritise accessibility and employee experience in hybrid working models.

According to Mateusz Jakubowicz, the asset’s central location and established profile in the local market underpin its leasing potential, especially for tenants seeking a well-connected address that can support both recruitment and retention.

The building features a glass façade designed to maximise natural light, alongside flexible floorplates that allow for adaptable office configurations. It also holds a LEED Gold rating, reflecting its sustainability standards. Additional amenities include a two-level underground car park and dedicated cycling infrastructure.

Connectivity remains a key advantage, with the property located approximately 1 km from Poznań Główny railway station and benefiting from direct access to tram and bus networks, reinforcing its appeal as a centrally located office destination.

CEE Investment Activity Moderates in Early 2026, with Poland Leading Regional Performance

Investment activity in Central and Eastern Europe (CEE) slowed in the first quarter of 2026 compared with the same period last year, although market engagement remains intact, according to recent data from Colliers.

Total investment volumes across the region reached approximately €2.1 billion in Q1 2026, reflecting a decline from the exceptionally strong levels recorded in 2025. However, the reduction is largely attributed to a high comparison base rather than a withdrawal of capital from the region.

Within this context, Poland accounted for more than half of total regional investment activity, with volumes approaching €1.1 billion, representing an increase of over 40% year-on-year and the strongest start to a year since 2022.

The data indicate that investor interest in the region remains, but with a more selective approach. According to Colliers, capital has not exited CEE markets despite ongoing geopolitical tensions, higher energy costs and delayed expectations for monetary easing. Instead, investors are focusing on asset quality, income stability and execution certainty.

Poland continues to act as the core investment market in the region, supported by the scale and diversity of transactions across sectors. Logistics and industrial assets remain the main drivers of activity, while retail has regained investor attention, partly due to portfolio transactions. The office sector has also shown signs of gradual recovery, particularly for well-located assets.

A notable structural trend is the increasing role of domestic capital. Across the CEE region, local investors now account for around 50% of transaction volumes, contributing to improved liquidity and shorter decision-making processes. This shift has supported market stability in a period of broader European uncertainty.

Elsewhere in the region, investment activity showed a more mixed pattern. Hungary recorded a marked increase in volumes, reaching over €325 million, nearly double the level of a year earlier. Bulgaria also reported higher activity, exceeding €100 million, while the Czech Republic and Slovakia experienced a slowdown following record levels in early 2025. These declines are largely explained by timing effects and the strong base of comparison rather than a deterioration in fundamentals.

Sectorally, retail attracted the largest share of investment in the first quarter, accounting for close to €630 million, followed by offices at over €600 million and industrial and logistics assets representing approximately a quarter of total volumes.

The broader macroeconomic environment remains a constraining factor. Higher energy prices continue to exert upward pressure on inflation, while expectations for interest rate cuts have been postponed. Central banks are maintaining a cautious stance, with monetary conditions remaining relatively tight.

Despite these conditions, the market is showing signs of adjustment rather than contraction. According to Colliers, current dynamics differ from earlier periods of economic disruption, with demand more subdued and financial conditions already restrictive, allowing investors to adapt their strategies rather than withdraw.

Overall, the first quarter of 2026 suggests that while investment volumes have normalised after a strong 2025, CEE real estate markets continue to attract capital, with Poland maintaining a leading position in the region.

Poland: Labour Demand Softens While Unemployment Remains Stable

Poland’s labour market is showing signs of weakening demand, although this has not yet translated into higher unemployment registrations.

The Labour Market Index (WRP), a forward-looking indicator of unemployment trends, declined by 1.7 points in April, marking the second consecutive monthly drop. The decrease follows a temporary increase recorded in February. Meanwhile, the registered unemployment rate remained unchanged at 6.1% in March, which is 0.8 percentage points higher than a year earlier.

The recent movements in both the index and unemployment figures reflect a combination of economic conditions and regulatory changes introduced in 2025. Analysts note that these factors continue to affect comparability of the data in the short term, although their influence is expected to diminish over time.

One of the main drivers behind the decline in the index is the reduction in the number of vacancies reported to public employment offices. Recent changes in the reporting system, including the transition from the Central Database of Job Offers to the ePraca platform, have also affected how vacancies are recorded. Although the number of job offers rose sharply month-on-month in March, it remains significantly below last year’s levels, by around 45 percent. As a result, official vacancy data may not fully reflect underlying labour demand.

Alternative indicators suggest a more gradual slowdown. The Job Offer Barometer, based on online listings, has recorded a continued decline in job postings since April 2025. The decrease is most visible in manual occupations, although demand in this segment remains relatively higher than in others. A modest increase has been observed in roles requiring scientific or technical qualifications, albeit from a low base.

Flows from unemployment into employment remain relatively stable. In March, the number of people leaving unemployment due to taking up work was unchanged compared to the previous month and around 10 percent higher than a year earlier. However, the relationship between job placements and public employment services remains difficult to assess due to limited data transparency.

At the same time, inflows into unemployment have not increased significantly. New registrations rose slightly on a monthly basis in March but were still below the level recorded a year earlier. This suggests that recent legislative changes have not yet resulted in a noticeable increase in the number of registered unemployed.

Business sentiment also remains cautious. Surveys from Statistics Poland indicate that more companies continue to assess their financial situation negatively than positively and are hesitant about expanding employment. Layoffs attributable to employers declined slightly month-on-month in March.

Overall, the data point to a labour market where demand is softening, but without a corresponding rise in unemployment so far.

Source: BIEC

Survey: Employees See AI as Useful but Express Concerns Over Dependence and Workplace Impact

A growing share of employees are integrating artificial intelligence into their daily work, but concerns about its broader impact are also increasing, according to a recent survey by Genesis Property.

The study, conducted at the beginning of 2026 on a sample of 1,146 respondents in Romania, found that more than 48 percent of employees consider AI a useful tool that simplifies their work. At the same time, 66 percent expressed concern about overdependence on the technology, while 56 percent believe it could contribute to the dehumanisation of work. Around 40 percent approach AI cautiously due to its potential impact on jobs, and 31 percent associate it with anxiety regarding long-term job security.

The findings also highlight clear boundaries where employees are reluctant to see AI applied. Approximately 62 percent of respondents said artificial intelligence should not be used in decisions directly affecting employees, such as performance evaluations, promotions or dismissals. More than half opposed its use in assessing emotions or motivation, while over one-third indicated that interpersonal relationships and team dynamics should remain outside the scope of automated systems. Nearly 30 percent also pointed to leadership and accountability as areas where decision-making should remain human-led.

Despite these concerns, respondents acknowledged productivity benefits. Over half said AI helps automate repetitive tasks, while others cited faster data analysis and support for creative work. However, the results suggest that employees are seeking a more balanced approach to technology use rather than further expansion without limits.

Workplace expectations are also evolving in response. Nearly 55 percent of respondents indicated a preference for office environments that combine technology with features supporting wellbeing, such as relaxation areas, natural light and access to outdoor space. Around one-third highlighted the need for dedicated areas for collaboration without digital tools, reflecting concerns about digital overload.

“We are seeing a meaningful shift in perspective: employees are not rejecting technology, but neither are they willing to accept it without limits,” said Elena Panait. “AI is welcomed where it simplifies work, yet it becomes a source of discomfort when it removes the human element entirely or is perceived as a control mechanism.”

The survey also indicates that employees are increasingly sensitive to certain workplace technologies. Activity monitoring systems were identified as the main source of discomfort by more than half of respondents, while over 40 percent expressed concerns about automated performance evaluations without human oversight.

According to the findings, preferences are shifting towards work environments that integrate technology more discreetly. Around 37 percent of respondents favour workplaces that support efficiency while retaining human decision-making, and a similar share prefer environments where technology is less visible. More than 30 percent emphasised the importance of flexible spaces that can accommodate different types of work, from focused tasks to collaboration.

The results point to a broader shift in workplace design priorities, where the focus is moving beyond digitalisation alone towards balancing efficiency with employee wellbeing.

Photo: Elena Panait, Head of Leasing, Genesis Property

Yareal Launches Final Phase of SOHO Scheme in Warsaw

Yareal Polska has started construction of SOHO HUB, the final phase of its SOHO by Yareal mixed-use project in Warsaw’s Praga Południe district. The works are scheduled for completion in the first quarter of 2028.

The developer has appointed FineTech Construction as general contractor for the phase, which includes the development of two new commercial buildings and the refurbishment of a historic industrial structure.

SOHO HUB forms the fifth stage of the broader SOHO by Yareal scheme in the Kamionek area. The project will include building J (Mińska 39), providing more than 7,000 sqm of space, alongside an underground car park with 146 spaces, including electric vehicle charging points. A second building, J’ (Mińska 39A), will accommodate service functions, including space intended for a fitness operator.

A key component of the phase is the refurbishment of building B.55 (Mińska 39B), a listed structure dating back to the late 19th century. Originally part of a linen and jute factory complex established in 1899, the building has been used for various industrial purposes, including by the Pocisk Ammunition Plant during the interwar period and later by state-owned manufacturing companies. The redevelopment is being carried out in coordination with the Masovian Voivodeship Conservator of Monuments and will include restoration of architectural elements such as the original window layout, alongside upgrades to meet current building standards.

Separately, works are ongoing on another historic building within the complex, which is being adapted to accommodate a restaurant offering. The space is expected to open in the second half of 2026.

“The commencement of construction work on SOHO HUB is a symbolic and incredibly important moment for us – we are entering the final phase of SOHO by Yareal, a project we have been consistently developing for years as a multifunctional, vibrant destination on the Warsaw map,” said Jacek Zengteler. “Through SOHO HUB, we are completing this investment by adding complementary functions. At the same time, we are restoring a historic building while adapting it to modern standards.”

The developer added that more than 1,300 sqm in building J has already been leased to a first tenant under a long-term agreement.

FineTech Construction has previously worked with Yareal on projects including the LIXA office buildings in Warsaw.

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