HIH Invest secures long-term lease with Action at Lehrte retail park

HIH Invest Real Estate has signed a new long-term lease with non-food discounter Action for approximately 1,000 sqm of retail space at Zuckerpassage 6–37 in Lehrte, Lower Saxony. The retailer is scheduled to open its store on 29 November 2025.

The agreement follows recent lease extensions with anchor tenants EDEKA and Expert, both of which have operated at the location since the scheme opened. Their renewals secure continued full occupancy at the retail park, which HIH Invest acquired for an investment fund in 2018.

Developed in 2004, the scheme comprises more than 20 units and a fitness studio across roughly 14,500 sqm of lettable space, supported by 450 customer parking spaces. The tenant mix includes several national chains alongside local operators.

According to Milan-Kristoffer Otte, Head of Asset Management Retail & Logistics at HIH Real Estate, the addition of Action broadens the centre’s offer and supports sustained footfall. Otte noted the site’s central positioning within Lehrte, its transport accessibility, and ongoing collaboration with tenants on improving the visitor experience, including coordinated promotions and service initiatives.

Lehrte, a town of around 44,400 residents located approximately 20 km from Hanover, benefits from strong regional connections. The retail park sits within the town centre, close to other retail and dining options. A bus stop is situated directly in front of the property, while Lehrte’s main railway station is within walking distance. The A2 and A7 motorways are around seven kilometres away, providing wider accessibility.

Ukraine Faces Major Graft Probe in Energy Sector Amid Wartime Pressures

Ukraine’s anti-corruption authorities have uncovered a large-scale kickback scheme linked to state energy contracts, prompting ministerial dismissals, public criticism and renewed scrutiny of the country’s governance standards during wartime. While no charges have been brought against President Volodymyr Zelenskyy, the investigation has reached senior current and former officials as well as individuals close to his administration.

The National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO) allege that executives and officials connected to Energoatom, the state nuclear energy operator, solicited kickbacks worth an estimated USD 100 million from suppliers. The contracts under investigation relate to the protection, servicing and repair of critical energy infrastructure targeted by Russian strikes.

Raids carried out in October and November led to the seizure of significant amounts of cash found in properties belonging to several suspects. The searches also extended to associates of the political leadership, intensifying public pressure on the government to demonstrate that anti-corruption institutions can act independently, even at the highest levels.

The fallout has already resulted in personnel changes. Former energy minister Herman Galushchenko — now serving as justice minister — was dismissed following the opening of proceedings, and Energy Minister Svitlana Hrynchuk has also been removed from her post. Both deny wrongdoing and have pledged to cooperate.

The scandal has generated strong public reaction within Ukraine, where the wartime environment has heightened expectations of accountability. Civil-society groups, veterans’ organisations and opposition figures have called for full transparency as the investigation continues.

International partners are also watching closely. The European Commission and several EU member states have reiterated that robust anti-corruption enforcement remains a core condition for Ukraine’s EU accession progress and for maintaining long-term financial and military support.

Zelenskyy has publicly endorsed the work of the anti-corruption authorities, stressing that graft in wartime is “unacceptable” and that investigations must proceed “without exception.” The case remains ongoing, with further charges expected as prosecutors review evidence gathered during the raids.

Source: Reuters, The Times, The Guardian and CIJ EUROPE Analysis Team

Romania’s EU-Funded Infrastructure Drive Advances, but Execution Risks Continue to Shape Investment Decisions

Romania is entering a decisive phase in its infrastructure development cycle, backed by substantial European Union funding and growing private-sector interest. While the scale of available financing for roads, railways and energy-related projects is unprecedented, delivery on the ground continues to be shaped by administrative capacity, project management constraints and the alignment between public works and private investment patterns.

Between its Cohesion Policy allocation for 2021–2027 and funds available through the revised Recovery and Resilience Facility, Romania is relying heavily on European financing to modernise transport corridors and strengthen its position within regional supply chains. Progress has accelerated in 2025, yet absorption levels still lag behind headline allocation figures, reinforcing long-standing concerns about execution speed.

According to Costin Nistor, Managing Director of Fortim Trusted Advisors, a meaningful share of EU funding is now visible in active construction sites and awarded contracts, particularly in large-scale road and rail projects. However, a considerable portion of funding remains tied up in procedural stages, including technical approvals, tendering and permitting, which slows the translation of allocations into completed infrastructure.

Recent examples illustrate how completed infrastructure can act as a catalyst for private investment. The finalisation of the express road linking Bucharest and Craiova has contributed to the expansion of logistics and manufacturing activity in the region, supporting production growth at major automotive facilities and attracting suppliers to nearby industrial zones. Similar patterns have emerged in western Romania, where improved connectivity has coincided with a rise in industrial development and occupier demand.

At the same time, infrastructure expansion is not always perfectly aligned with where private capital is flowing. While national motorways and rail lines are designed to connect major economic centres, logistics and manufacturing investors often concentrate around airports, ports and established urban hubs. In several cases, economic activity has shifted faster than infrastructure planning, leaving new transport links needing to adapt to evolving investment geography rather than anticipating it.

Beyond funding availability, procedural hurdles remain a key barrier to faster delivery. Permitting timelines, land ownership clarification and access to utilities continue to delay both public projects and private-sector participation. Tendering processes are often complex and lengthy, and regulatory uncertainty can discourage investors from committing early capital. Industry participants increasingly stress that predictability of execution is as critical as financing itself.

Despite these challenges, institutional interest in Romanian logistics and industrial assets continues to grow. While improved connectivity supported by EU funds enhances the appeal of certain locations, real estate investment decisions are still driven primarily by occupier demand, workforce availability and proximity to customers. Infrastructure investment acts more as an accelerator than a sole determinant of market activity.

Looking ahead to 2026 and 2027, risks are less likely to stem from a lack of funding or abrupt political shifts, and more from Romania’s capacity to manage, supervise and deliver multiple large-scale projects simultaneously. The concentration of works across highways, rail corridors and urban nodes is intensifying competition for skilled labour, engineering expertise and construction oversight, increasing the risk of delays and cost overruns.

Nevertheless, Romania’s infrastructure pipeline remains one of the most ambitious in Central and Eastern Europe. Major motorway projects in the east, west and around Bucharest, combined with rail upgrades along key European corridors, are strengthening the country’s role in regional logistics and manufacturing networks. For investors, contractors and financiers willing to navigate administrative complexity, the next two years represent a critical window in which European funding can be converted into lasting economic and transport assets.

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Atradius Warns of Rising Insolvencies and Record Bad Debts in Germany

Corporate insolvencies in Germany are expected to continue rising amid ongoing structural and economic pressures, according to the latest outlook from international credit insurer Atradius. The organisation forecasts that the number of insolvencies could reach up to 30,000 cases in 2026, compared with an estimated 25,000 cases in 2025.

More significant than the increase in insolvency filings is the expected rise in the volume of bad debts. Atradius anticipates that losses from unpaid invoices could climb to €65 billion in 2025, up from approximately €56 billion in 2024, marking the highest level recorded in recent years.

Frank Liebold, Country Director Germany at Atradius, described the situation as a “U-shaped crisis” rather than a short-term downturn. According to him, many of the risks facing German companies will remain for an extended period. These include persistently high energy and raw material costs, weak domestic demand, elevated interest rates, supply chain constraints, competitive pressure from low-cost imports, and geopolitical uncertainty.

“These structural challenges are affecting nearly every sector,” Liebold said. “Automotive manufacturers and suppliers, the steel and metal industries, and construction are among those under the greatest strain.”

Improved restructuring processes

Despite the difficult environment, Atradius notes that insolvency proceedings in Germany have become more transparent and more professionally managed in recent years. The increasing use of digital tools, improved coordination between stakeholders, and new legal frameworks—such as the StaRUG restructuring procedure—have supported a greater focus on business recovery rather than liquidation.

“Our goal is not simply to manage the end of a company’s operations, but to help return viable businesses to a stable path wherever possible,” Liebold said.

Importance of early risk detection

Atradius highlights the value of early warning indicators for suppliers and creditors, including changes in payment behaviour, requests for extended terms or higher credit limits, management turnover, and declining staff morale. For medium-sized companies, the insurer recommends leveraging professional credit assessments, consolidated ratings, and risk analysis to better manage potential exposures.

Retention of title arrangements, robust general terms and conditions, and cooperation within supplier pools can also help reduce losses and support recovery efforts.

Long-term opportunities despite pressures

Claudia Kaiser, Director of Risk Services for Germany, Austria and Switzerland, emphasised that alongside the challenges, there remain positive prospects for German industry, particularly in high-technology fields.

“Germany still has many innovative and competitive companies, and the transformation under way in areas like artificial intelligence, robotics, chip design and quantum technologies offers long-term growth potential,” Kaiser said. “The connection between research, science and industry remains strong, and this foundation continues to support innovation.”

Master Management Group Opens Brama Jury Shopping and Entertainment Centre in Zawiercie

Master Management Group has opened Brama Jury, a 16,400 sqm shopping and entertainment centre in Zawiercie. The project combines elements of a retail park and traditional shopping mall and includes more than 40 tenants across fashion, services, health and beauty, home goods, and leisure. It is also the first development in the city to introduce a multiplex cinema and a modern fitness club.

The centre, located on Zagłębiowska Street near key local transport routes, aims to serve everyday retail needs while providing new leisure options for the region. Construction took just under two years and involved a broad range of local contractors. The scheme now supports employment across retail, food service and entertainment.

Brama Jury’s tenants include well-known Polish and international brands in fashion, sportswear, electronics, cosmetics, home furnishings and pet supplies. The food and beverage offer features a restaurant and cafés, alongside a selection of smaller dining concepts. Everyday shopping needs are supported by an Intermarché supermarket.

The development features a four-screen Planet Cinema multiplex and a One Gym fitness club. Parking for 525 cars is available on site. The project was designed by APA Via, with SPEC BAU Polska serving as general contractor.

Czech Mortgage Market Sees 3% Rise in October, Rates Edge Lower

Mortgage activity in the Czech Republic continued to grow in October, with banks and building societies providing loans totalling CZK 38.8 billion, according to the latest data from the Czech Banking Association’s Hypomonitor. The result represents a 3% increase compared with September, reflecting ongoing strong demand despite elevated market interest rates.

New mortgages excluding refinancing amounted to CZK 29.4 billion, a slight month-on-month decline. The average mortgage rate on new loans fell to 4.48%, down from 4.52% in September, continuing the modest downward trend recorded since mid-2024.

“The market remains robust even after the October correction,” said Jaromír Šindel, chief economist of the Czech Banking Association. “This year’s figures are likely to exceed last year’s totals by roughly a quarter. Higher property prices have also contributed to pushing up the total volume of new loans.”

The number of newly granted mortgages fell slightly to around 6,800, though this remains approximately 18% higher than a year earlier. After seasonal adjustment, the association estimates around 6,700 new loans in October, broadly in line with recent months.

Refinancing activity continued to increase. The volume of refinanced or internally adjusted loans reached CZK 9.4 billion, significantly higher than this time last year and well above the averages seen in 2023, when refinancing activity was subdued due to high interest rates. Refinancing accounted for 24.2% of all mortgage volume in October, compared with an average of around 17% over the previous three years.

Although rates have eased since 2024, market interest rates in the Czech Republic remain elevated and continue to limit the scope for a more pronounced decline in mortgage pricing. The October rate is approximately 0.42 percentage points below that of a year earlier. According to Hypomonitor, the reduction translates into a monthly payment that is roughly 1.1% lower relative to the average applicant’s net income.

The average size of a new mortgage declined slightly to CZK 4.34 million in October. Despite the monthly drop, this remains about 15% higher than a year ago, reflecting both rising property prices and increased borrowing capacity. The combination of larger loan sizes and slightly lower rates has resulted in an average monthly mortgage payment around CZK 2,300 higher than the 2024 average.

Source: CTK

Skanska Sells Second Phase of Centrum Południe in Wrocław for EUR 62 Million

Skanska has completed the sale of the second phase of the Centrum Południe office scheme in Wrocław, transferring the asset to INVESTIKA Real Estate Fund in joint venture with BUD HOLDINGS. The deal, valued at EUR 62 million (approximately SEK 680 million), will be recognised in Skanska Commercial Development Europe’s Q4 2025 results, with the ownership transfer taking effect immediately.

The 15-storey building provides around 21,500 sqm of office and retail space along with 215 parking spaces. Located near Wrocław’s main railway station, the project is served by a range of public-transport options and forms part of Skanska’s multi-phase development in the city.

Centrum Południe’s second phase includes tenant loggias on each floor and features a public basketball court. The scheme was developed in line with ESG standards and is powered by electricity from renewable sources. It holds LEED Platinum, WELL Gold and Object Without Barriers certifications. The entire office component is leased to BNY, while Luxmed occupies the retail space. BNY has additionally secured LEED Commercial Interiors Platinum for its fit-out.

Construction began in 2021 and concluded in 2023.

MLP Group Posts 28% Increase in FFO and Steady Growth After 3Q 2025

MLP Group has reported strong financial and operational performance for the first nine months of 2025, with results showing continued stability across its logistics and industrial real estate portfolio in Poland, Germany, Austria and Romania. The company recorded a 28% year-on-year increase in Funds from Operations (FFO), supported by higher revenue, rising EBITDA and sustained leasing activity.

Financial Performance

Consolidated revenue for the period reached EUR 72.5 million, up 12% compared with the same period in 2024. EBITDA excluding revaluation gains rose 14% to EUR 37.6 million. The fair value of investment properties increased 9% to EUR 1.41 billion versus December 2024, while Net Asset Value grew 3% to EUR 663.3 million, equivalent to EUR 27.6 per share.

Net profit amounted to EUR 21.2 million, down from EUR 61.6 million a year earlier due to lower revaluation effects.

Commenting on the results, Radosław T. Krochta, President of the Management Board, said: “Performance, stability and steady growth are the values that best define our business. The 28% increase in FFO confirms the Group’s strong foundations and the ability of our properties to generate stable, recurring cash flows. Our strategy is built on a high-quality portfolio, long-term tenant relationships and effective risk management. Our business is highly predictable, and we consistently focus on what remains constant – tenant satisfaction, growth in asset value and sustained cash-flow expansion, which form the foundation of MLP Group’s success. Following a very strong third quarter, we expect record leasing volumes in the fourth quarter – the market outlook is very positive.”

Portfolio and Leasing Activity

MLP Group signed lease agreements for approximately 189,000 sqm of space since the beginning of 2025. The company’s total leased area now stands at around 1.3 million sqm across 195 tenants. The occupancy rate reached 91%, broadly in line with last year, while 98% of rents were paid on time. The tenant retention rate remained exceptionally high at 99%.

At the end of September, the group had 326,800 sqm of space under construction or in preparation. Its landbank, including secured options, supports more than 2.4 million sqm of future development. To date, over 1.3 million sqm of modern logistics space has been delivered, with 90% of assets built in the past 10 years.

Outlook

MLP Group maintains that its prudent financing structure and stable cash-flow base continue to support its development pipeline. The company’s focus remains on the delivery of Class A logistics parks and urban last-mile facilities built to ESG standards.

Slovakia’s Inflation Slows to 3.7% in October, Matching the Year’s Lowest Level

Inflation in Slovakia eased to 3.7% in October, matching April’s level as the lowest recorded so far this year. Consumer prices rose only marginally month-on-month, increasing by 0.1%. Year-on-year inflation dropped below 4% for the first time in five months.

Month-on-Month Developments

Prices increased in nine out of twelve expenditure categories compared with September. The strongest monthly growth was recorded in recreation and culture (+0.7%), driven mainly by higher prices for package holidays. Personal care products and insurance contributed to a 0.4% rise in miscellaneous goods and services. Housing and energy costs, the largest component of household spending, increased by 0.1%, while clothing and footwear rose by 0.6%.

Transport prices fell by 1.5%, mainly due to cheaper air travel and lower fuel prices. Food and non-alcoholic beverages remained stable overall, as price declines in meat, fruit and selected delicacies balanced increases in vegetables, confectionery and fish. Non-alcoholic beverages became cheaper for the first time this year.

Year-on-Year Developments

All twelve expenditure categories recorded higher prices compared with October 2024. The strongest increases were in education and in restaurants and hotels, both up by 8.9%. Growth accelerated noticeably in miscellaneous goods and services (+6.7%), recreation and culture (+5.4%) and alcoholic beverages and tobacco (+6.1%).

A key factor easing overall inflation was the slowdown in food and non-alcoholic beverage prices, which rose by just 1.4% year-on-year—the lowest rate since June 2024. Several food categories recorded price declines, including vegetables (down more than 10%), meat, fruit, oils and fats, and sugar and confectionery. Prices increased in categories such as milk, cheese, eggs, bread and cereals. Non-alcoholic beverages continued to rise, although at a slower pace.

Housing and energy prices increased by 2.5%, the same rate as in September, driven mainly by higher rents. Transport inflation eased to 3.4%, reflecting slower fuel price growth and lower motor-vehicle prices.

For the first ten months of 2025, consumer prices were up 4% year-on-year.

Core and Net Inflation

Core inflation stood at 3% in October, while net inflation—excluding food prices—was 3.4%. Both indicators increased by 0.1% compared with September.

Source: Statistical Office of the SR 

Sustainability, Identity and Future-Proof Design: A Conversation with Szymon Wojciechowski of APA Wojciechowski Architects

APA Wojciechowski Architects has become one of the most influential architectural studios in Central and Eastern Europe, known for projects that combine sustainability, urban sensitivity and modern functionality. With developments such as Riverview in Gdańsk, Skyliner in Warsaw, Elektrownia Powiśle and UNIT.City in Kyiv, the practice has built a consistent record of delivering architecture that balances commercial efficiency with social and environmental responsibility.

In this interview, Szymon Wojciechowski – CEO, Co-Owner and Architect-Partner at APA Wojciechowski Architects – discusses how the studio is advancing its sustainability agenda, approaching historic revitalisation, building regional identity into design, anticipating future workplace trends, and scaling its capabilities for large mixed-use urban projects.

APA Wojciechowski’s projects regularly achieve leading environmental certifications, from LEED Gold at Riverview to BREEAM Excellent at The Park Warsaw. According to Wojciechowski, this focus is embedded in the firm’s ethos.

“Sustainable architecture has been deeply ingrained in our studio’s DNA for many years. We are fortunate to collaborate with conscious investors who share our environmentally friendly values, enabling us to grow and strive for excellence in this field.”

He notes that the broadening of certification—from the traditional office and retail sectors into the residential market—is an encouraging shift.

“This is quite optimistic and shows that end users of the apartments also care about living in a healthy environment. Of course, the flagship example of this is the Riverview project, but let’s not forget about mix-use projects such as Elektrownia Powiśle in Warsaw or UNIT.City in Kyiv, which are examples of environmentally friendly developments created in the spirit of the 15-minute city.”

The firm is now aiming even higher on upcoming office schemes.

“When it comes to office projects, together with our clients, we are constantly raising the bar: the Skyliner II and LightOn projects will hold BREEAM certificates at the Outstanding level.”

APA Wojciechowski has gained a reputation for breathing new life into historic industrial sites—from the ongoing transformation of Cukrownia Pruszcz Gdański to the award-winning Elektrownia Powiśle. Revitalisation, Wojciechowski emphasises, demands precision and adaptability.

“We approach each project individually, which is particularly important in the case of historic redevelopment projects. The architect’s vision must incorporate the requirements of the heritage conservator, the client’s expectations, as well as local regulations and commercial standards.”

Preserving authenticity requires strong cooperation between all stakeholders.

“The synergy of all people and companies involved in the project and good cooperation are extremely important, as working on historic properties is often like operating on a living organism. An architect should strive to incorporate the unpredictable into a design. For various reasons, this sometimes requires a specialized approach and ongoing modifications to our vision.”

He sees rising interest in revitalisation across Poland—and not only for century-old buildings.

“We see a growing interest among our clients in revitalization projects in Poland, which is probably due to the large number of success stories to which we have had the honor of contributing. Let’s remember that even relatively new buildings can be given a second life, as exemplified by the V Tower in Warsaw.”

The studio’s Kielecka 2 office building in Gdynia incorporates subtle references to the city’s modernist and maritime heritage, reflected in its façade and form. Wojciechowski explains that such regional accents result from careful research and internal exploration.

“We often try to ‘smuggle’ local accents into the buildings we design, each time preceded by thorough research. One way to confront diverse ideas is through internal architectural competitions within our studio, sometimes within the design team.”

The diversity of the studio shapes this process.

“Thanks to the fact that our team includes people with very different experiences, from different countries, very custom ideas often emerge, which are then confronted with market standards and client expectations.”

Timelessness remains a priority.

“Of course, we also strive to ensure that the design solutions we use are timeless, so that the buildings we design stand the test of time and remain vibrant for many, many years.”

For Kielecka 2, the connection to place emerged naturally.

“Kielecka 2 was designed by our Tricity team, whose office is located in Gdynia – there is nothing more enjoyable than the opportunity to co-create the space that surrounds us. Referencing local modernist and maritime architecture was a natural progression, emerging from the very beginning of our design process. Ultimately, a building was created that enjoys constant recognition among its tenants.

As workplace models shift toward hybrid structures and wellness-led environments, APA Wojciechowski has increasingly prioritized flexibility in its commercial buildings.

“A building’s form cannot be closed, but rather open to permanent changes, short-term forms, and radical spatial transformations. Therefore, the process of creating a design that is as future-proof as possible begins at the earliest design stage.”

Future resilience is considered even for headquarters designed for single tenants.

“Even if our goal is to design a client’s headquarters, we consider various possible scenarios that may arise in the future—for example, the decision to lease the space or part of it commercially.”

Skyliner illustrates this adaptability.

“Taking into account the latest trends that are changing is, of course, one of the next stages of our work. A prime example of flexible design is the Skyliner, whose top floors feature a vibrant event space. And its lobby hosts both business and private meetings.”

Large mixed-use schemes require coordination across many disciplines and stakeholders. Wojciechowski believes these developments represent the next phase of urban evolution.

“Undoubtedly, mixed-use projects that connect multiple industries and engage the community are the future of the real estate market. They require from us a personalized and holistic approach, as well as openness. Openness to people’s needs and the ability to change the initial design concept.”

He notes that architects must increasingly assume broader responsibilities.

“The role of architects extends beyond their usual duties: we must be skillful and responsible project managers.”

Looking ahead, technological advances will reshape the profession.

“While it is difficult to predict the future, we know that innovations, including those in the field of artificial intelligence, will play a significant role in it.”

APA Wojciechowski Architects continues to shape the evolution of Polish and regional architecture through sustainable design, adaptive reuse, contextual sensitivity and forward-thinking workplace concepts. As urban environments grow more complex, the studio’s ability to integrate technical, social and environmental priorities positions it at the forefront of contemporary architectural practice.

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