M1 Kraków welcomes new tenants and expands retail offering

M1 Kraków, a family shopping centre managed by EPP, is expanding its range of food, services, and sports retailers through several recent lease agreements covering over 6,000 sqm. Among the new tenants is Sports Direct, which has opened its first store in Kraków, along with Asia Mama, an Asian street food restaurant, and Maxi Zoo, a pet supply store. Cukiernia Sowa has also recently opened at the centre.

Existing tenants such as MediaMarkt, McDonald’s, HalfPrice, and 4F have extended their leases and undertaken refurbishments. 4F has introduced its updated BLACK store concept, which features minimalist design elements using steel, wood, and monochrome tones.

Asia Mama operates on a buffet model and offers dishes prepared on-site by Thai chefs, including traditional wok meals, sushi, pad thai, and pho. Cukiernia Sowa combines confectionery with café service, offering pastries, ice cream, pralines, coffee, and a family-friendly seating area with a children’s corner.

Maxi Zoo provides more than 8,000 products for pets, including food, accessories, and specialist supplies for small animals, birds, aquariums, and terrariums. The store also allows customers to shop with their pets.

Further changes are planned for M1 Kraków. This autumn, HalfPrice will move into a larger unit to increase its product range. In spring 2026, NEW YORKER is expected to open a new store at the centre, nearly tripling its existing retail space.

Oxygen Park in Warsaw attracts new tenants

Three companies have recently joined the tenant roster at the Oxygen Park office complex on Jutrzenki Street in Warsaw. Trane Poland Sp. z o.o., Hamelin Polska Sp. z o.o., and e-Xim IT S.A. have leased a combined 1,700 square metres of office space in the development owned by Golden Star Estate. All leases began in early May and are long-term agreements.

Trane Poland, which operates in the HVAC sector, has taken 727 square metres in the complex. The company specialises in heat management systems for industrial and commercial buildings and was advised in the lease transaction by Coldwell Banker Commercial Nuvalu.

Hamelin Polska, part of a global group supplying school and office products, has leased 573 square metres for its new headquarters. The company, known for brands such as Oxford and Elba, operates a manufacturing site in Włocławek. The Warsaw location was secured with the support of Coldwell Banker Commercial Nuvalu.

The third new tenant is e-Xim IT, a company active in digital transformation and a key Polish partner for ServiceNow. It has leased 395 square metres and was represented by Patron Brokers in the lease negotiation.

Oxygen Park consists of two six-storey office buildings offering a total of more than 18,000 square metres of leasable space. The development, completed in 2013 and designed by JEMS Architekci, features flexible floor layouts and BREEAM “Very Good” certification. Tenants also benefit from access to a landscaped courtyard, cafeteria, underground parking, bike storage, and shower facilities.

Located on Aleje Jerozolimskie, a major Warsaw thoroughfare, the complex is accessible by car and public transport, including the nearby WKD Raków station. It is situated approximately 7 kilometres from both Warsaw’s city centre and Okęcie Airport. Retail options in the area include Reduta and Blue City shopping centres as well as local supermarkets.

The tenant base at Oxygen Park includes companies from various sectors, such as Adara, Agfa, Certis Belchim, ECO3, and Toshiba Global Commerce Solutions.

Real estate financing in Germany shows signs of stabilisation amid challenging conditions

The German real estate financing market remains under pressure, but experts are beginning to note cautious signs of stabilisation. According to the latest BF.Quartalsbarometer, a sentiment analysis published by BF.direkt AG in collaboration with bulwiengesa AG, the mood among financiers has slightly improved in the second half of 2025. However, a sustained recovery is not yet in sight, as conditions remain shaped by ongoing caution, interest rate volatility, and geopolitical uncertainty.

At a recent online press conference hosted by RUECKERCONSULT, real estate and finance leaders including Francesco Fedele (CEO, BF.direkt AG), Torsten Hollstein (Managing Director, CR Investment Management), Peter Axmann (Head of Real Estate Clients, Hamburg Commercial Bank), and Alexander Eggert (Managing Director, HIH Invest Real Estate) provided insight into the state of the market. They agreed that while sentiment is improving slightly, forward deals remain rare and financing conditions are still tight, particularly for assets with uncertain income streams.

The residential real estate segment continues to be viewed as resilient, supported by demand that far outpaces new construction activity. In contrast, the commercial property sector is seeing a clear split. High-quality, ESG-compliant office assets in prime locations leased to strong tenants continue to attract financing on favourable terms. Lower-grade properties in less desirable areas, however, remain difficult to finance or trade. Many owners are opting to delay transactions, holding out for greater market stability, as investors’ pricing expectations remain low.

There is a growing reliance on active asset management and alternative financing strategies. For properties that struggle with follow-up financing, improving leasing performance and developing realistic repositioning or exit strategies are key. When traditional bank loans are not feasible, credit funds and whole loan structures are increasingly being considered. Financing restructurings are also being used to avoid forced sales and to reduce loss risk.

Peter Axmann from Hamburg Commercial Bank noted that while new financing activity is gradually increasing, it is rebounding from a low base. He observed a slight uptick in residential property prices, while interest in hotel and retail assets remains subdued, though shopping centres may now offer re-entry opportunities due to significant price corrections. Logistics rents remain stable, but lease-up periods are becoming longer.

Torsten Hollstein of CR Investment Management remarked that despite widespread negative headlines and increasing refinancing pressure, sentiment has improved. He attributed this to the return of some international capital, with Germany once again appearing near the top of many investors’ target lists, albeit with more cautious and selective strategies.

Francesco Fedele of BF.direkt AG stressed that deep real estate expertise is more important than ever. Properties facing refinancing difficulties can often be repositioned successfully—provided there is a sound concept. He pointed out that within the core segment, there is now a wider spread of financing terms, and noted that many newer investments carry more leverage than those made several years ago.

Alexander Eggert of HIH Invest Real Estate reported that his firm is not experiencing issues with loan extensions. HIH holds a loan portfolio of approximately €6 billion and regularly extends €400 to €600 million annually. In 2024, HIH reached a transaction volume of €1.3 billion, including significant financing activity. While the firm sees that interest rate adjustments are now largely reflected in valuations, it does not observe notable risk premiums in either financing or refinancing scenarios. Nevertheless, Eggert acknowledged that legacy issues from previous market cycles still require attention.

Overall, while the German real estate financing market continues to face headwinds, the gradual return of capital, growing investor selectivity, and the rise of alternative financing tools suggest a sector slowly finding its footing. The path to recovery may be uneven, but cautious optimism is beginning to take hold.

Photo: Peter Axmann, Leiter Immobilienkunden – Hamburg Commercial Bank, Torsten Hollstein, Geschäftsführer – CR Investment Management, Francesco Fedele, CEO – BF.direkt AG and Alexander Eggert, Geschäftsführer – HIH Invest Real Estate

Romania positioned as emerging data centre market with strategic advantages

Romania is emerging as a promising destination for data centre investments, supported by a mix of favourable economic, technological, and geographic conditions, according to a recent analysis by real estate consultancy Cushman & Wakefield Echinox. The country offers a compelling value proposition for developers and operators looking to expand capacity in Europe, particularly in secondary markets that offer fewer entry barriers and greater long-term growth potential.

One of Romania’s key advantages lies in its diversified energy mix. Over half of the country’s electricity comes from renewable sources, supported by a stable and reliable power grid. Additionally, the country’s investment in high-speed optical fibre infrastructure has enhanced internet quality and connectivity, both essential for data centre operations.

Workforce availability also strengthens Romania’s competitive position. The country boasts a skilled IT labour pool and competitive employment costs, alongside cybersecurity standards aligned with European regulations. These factors, combined with national digitalisation initiatives and EU-supported programmes, create a favourable environment for the expansion of data centre capacity.

Environmental conditions further enhance Romania’s appeal. The temperate climate allows for efficient cooling using natural technologies, reducing operational costs and environmental impact. While land typically accounts for a smaller share of total development costs, Romania’s availability of competitively priced plots in low-risk areas adds to its attractiveness for long-term investments.

Despite strong global growth in the data centre sector, Romania’s current installed capacity remains modest, at under 100 megawatts (MW). However, local market fundamentals indicate strong potential. According to Laura Bordianu, Data Analyst in the Research Department at Cushman & Wakefield Echinox, Romania presents a favourable entry point for international developers seeking to benefit from the conditions of an emerging market. She points to regions beyond Bucharest—such as Cluj-Napoca, Timișoara, and Iași—as having the infrastructure, talent, and digital connectivity needed to support future expansion.

At present, Romania’s data centre market is primarily served by domestic operators, with smaller-scale facilities. There are currently 59 data centres across the country, 27 of which are in Bucharest. Other notable clusters include Timișoara with nine centres, Cluj-Napoca with eight, and Brașov with four. A major development is underway in Mișchii, Dolj County, where Cluster Power is building the largest hyperscale data centre in Romania, planned to reach 200 MW of operational capacity.

Cloud services are a major global driver of data centre demand. In mature markets, platforms such as Amazon Web Services, Microsoft Azure, and Google Cloud account for significant shares of capacity—40% in the Americas and 25% in the EMEA region. However, Romania currently lacks the presence of such large-scale cloud operators, representing both a gap and a growth opportunity for future entrants.

Globally, the data centre industry continues to expand rapidly, driven by artificial intelligence (AI), cloud adoption, and digital transformation across sectors. Major tech companies including Amazon, Google, Meta, Microsoft, and Oracle are accelerating infrastructure development worldwide to meet increasing demand.

Established data centre markets in Western Europe, North America, and Asia are facing growing challenges, such as high land prices, strict sustainability regulations, rising energy costs, and limited power availability. These constraints are prompting operators and investors to shift attention towards secondary markets where expansion is more feasible.

The EMEA region has seen a surge in data centre activity, reaching approximately 9.4 gigawatts (GW) of live operational capacity. An additional 2.9 GW is currently under construction, with 8.7 GW in the planning stages—indicating a total pipeline growth of about 16% year-on-year. The main hubs—Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD)—continue to lead the region, with London alone accounting for 1.14 GW of capacity. Milan is also emerging as a key player with 990 MW of live and pipeline capacity.

Market growth is being driven by a combination of colocation providers such as Equinix, Digital Realty, NTT Global Data Centers, and Colt Data Centre Services, and hyperscale operators including Amazon, Microsoft, Google, and Meta. These firms are investing heavily in large-scale infrastructure to support the next generation of cloud and AI-driven services.

Romania’s combination of strategic location, renewable energy capacity, skilled labour, and underdeveloped market conditions positions it as a strong candidate for future data centre expansion in Central and Eastern Europe.

Photo: Laura Bordianu, Data Analyst – Research Department at Cushman & Wakefield Echinox

PORR completes accelerated private placement of treasury shares

PORR has successfully completed the sale of 1,703,674 of its own shares through an accelerated private placement to international institutional investors. The sale, representing approximately 4.3% of the company’s share capital, generated gross proceeds of €45.1 million at a price of €26.50 per share. Completion of the transaction is expected on 20 June 2025.

The proceeds will be used to support PORR’s strategic focus on expanding its infrastructure business across Europe, particularly in Germany, Poland, and the CEE region. With the additional capital, the company aims to position itself to benefit from the surge in demand anticipated from ongoing government infrastructure programmes in these markets.

The sale increases PORR’s free float (excluding management-held shares) from 42.9% to 47.3%. CEO Karl-Heinz Strauss noted that the broader international investor base and improved capital structure enhance the company’s growth prospects. He also highlighted that increased liquidity could strengthen PORR’s potential for inclusion in Austria’s leading stock index, the ATX.

“This step secures the capital needed for further infrastructure expansion in our core markets,” said Strauss. “It also supports the long-term attractiveness of our shares for institutional investors by increasing trading volume and visibility.”

Berenberg, Jefferies, and Raiffeisen Bank International acted as joint global coordinators and joint bookrunners for the placement. Lilja & Co. served as independent capital markets advisor to PORR.

Photo: Klemens Eiter, Karl-Heinz Strauss, Josef-Dieter Deix and Claude-Patrick Jeutter – PORR
Photo: © Astrid Knie

HIH Invest sells fully let office and production property in Munich

HIH Invest Real Estate has completed the sale of a fully leased office and production property located at Taunusstraße 41 in the Milbertshofen-Am Hart district of Munich. The buyers are Montano Real Estate GmbH and Beyond Real Estate Holding, with the transaction structured as an asset deal.

Originally constructed in 1972, the building underwent significant modernisation in 2012 when BMW took occupancy. The car manufacturer most recently extended its long-term lease in 2024. HIH Invest acquired the single-tenant asset in 2014 for the portfolio of a specialised investment fund.

The property offers approximately 23,000 square metres of gross floor area and includes 163 underground parking spaces and 93 outdoor parking spaces. It is situated in Munich’s north, near the Euro Industriepark and BMW’s Research and Innovation Centre (FIZ), positioned north of Frankfurter Ring and west of Ingolstädter Straße.

“In a challenging market environment, we successfully brought the asset to market, delivering a strong result for our investors over the ten-year holding period,” said Daniel Asmus, Head of Transaction Management Office Germany at HIH Invest.

Legal counsel for the transaction was provided by Hogan Lovells in Hamburg, with technical vendor due diligence carried out by CBRE. Colliers in Munich supported the sales process.

Radoslav Rachač appointed Director of Geosan Development

Geosan Development has announced the appointment of Radoslav Rachač as its new Director and Managing Director. Rachač, 49, has been with the company since 2005 and steps into this role from his previous position as Chief Financial Officer and Managing Director, a post he held since 2014.

Over his two decades at Geosan Development, Rachač has played a central role in managing the company’s financial operations, including project financing, accounting, acquisitions, and liaison with banks and government authorities. In his new role, he will assume broader responsibilities, including strategic planning and operational oversight.

Reflecting on his appointment, Rachač stated: “After twenty years with Geosan Development, I’ve had the opportunity to be part of the company’s evolution and key milestones. Geosan has a solid position in the Prague residential market, and I look forward to building on what we’ve accomplished—enhancing our operational efficiency and advancing both project development and our relationships with partners, particularly our clients.”

Rachač holds a university degree in economics and brings 25 years of experience in financial and corporate management. Before joining Geosan, he served as Financial Director at Charouz Holding and later at JRC, a leader in the gaming retail sector. He is fluent in English and enjoys spending time with his family, engaging in sports, gardening, travelling, and exploring local breweries.

Geosan Development has been active in the Czech residential real estate market since 1998, delivering 22 buildings with nearly 2,350 apartments. Current projects include Rezidence Radimova and Re.Start Petynka in Prague 6, and Benkova Rezidence in Prague’s Chodov district. The company also plans to develop over 1,500 apartments in central Prague, currently in various planning stages. Outside the capital, Geosan is progressing with residential plots in Choťánky near Poděbrady. In 2018, it expanded into office properties with the acquisition of Nagano Park in Prague 3, comprising 26,000 sqm of leasable space.

Cordia introduces residential project as part of Corvin Promenade development

Cordia has begun the conversion of an office building into a residential project adjacent to Corvin Promenade, adding more than 200 apartments to its Budapest portfolio. This initiative is part of the company’s broader response to growing demand in the city’s new-build housing market.

In 2025, sales of newly built homes in Budapest have significantly increased, with nearly 4,000 units sold in the first four months—double the number from the same period last year. This has been accompanied by a 6% rise in average prices compared to December 2024. The average price per square metre now stands at HUF 1.777 million (EUR 4,425), with values approaching HUF 2 million on the Buda side and HUF 1.7 million in Pest.

Cordia has already launched five new residential developments this year, offering over 1,000 units, and expects to release several hundred more apartments during the second half of 2025. The new Corvin Campus project is being developed within the existing structure of the Corvin Innovation Campus. Originally planned as an office building, it will now provide residential units, including a high proportion of studio and one-bedroom apartments designed to appeal to investors.

The development is located close to Semmelweis University, Metro Line 3, and the Corvin Promenade, areas known for high rental demand. The building will include eight storeys above ground, three levels of underground parking, 400 square metres of shared space, and a rooftop terrace. Cordia is offering buyers a 10/90 payment scheme, allowing a 10% reservation payment with the balance due at completion.

The architectural redesign is being managed by Radius B+S, the original designers of the building. Cordia notes that reusing the existing structure reduces environmental impact and shortens the construction timeline. Some units will have ceiling heights above three metres, reflecting the flexibility of the existing framework.

According to Cordia, this project is the first functional conversion of its kind in the central part of Budapest and is part of the Futureal Group’s broader strategy to adapt to shifting dynamics in both the office and residential markets.

Cordia expects demand to remain strong through the rest of 2025, supported by maturing government bonds and a stabilising economic outlook. The company projects total new home sales in Budapest to surpass the 7,400 units sold in 2024.

REICO LONG LEASE fund acquires logistics park Rokycany in Czech Republic

REICO LONG LEASE fund has acquired Logistics Park Rokycany in the Czech Republic, marking its second acquisition in a week and the seventh property in its portfolio. The open-ended fund, managed by REICO investiční společnost Erste Asset Management, continues to expand its presence across Central Europe with long-term leased assets.

The recently acquired logistics facility, located in the Pilsen region near the D5 motorway, offers close to 30,000 square metres of warehouse and office space. Completed in December 2023, the property includes extensive parking and handling areas. It is leased to Duvenbeck on a nearly 15-year lease term and serves as the company’s largest transhipment centre in Europe.

The project has achieved BREEAM Very Good certification, reflecting adherence to established ESG standards. Its location along the D5 motorway provides access to both domestic and international transport routes, placing it in one of the Czech Republic’s key logistics zones. The region is second only to Prague in terms of industrial market size and has a current vacancy rate of 2.4%.

Thomas Duvenbeck Immobilien, the tenant, has operated in the Czech market for over 25 years and has an 80-year global track record. The company provides freight transport services, logistics, and forwarding solutions across the EU.

The transaction follows recent acquisitions in Slovakia and Poland and aligns with the fund’s strategy of securing properties with long-term lease agreements and stable tenants. According to Dušan Sýkora, Chairman of the Board of Directors at REICO, this acquisition contributes to the fund’s long-term return objectives and places available capital under favourable conditions.

The property was acquired from ARETE, with legal, financial, and technical support provided by Wilsons, ASB, Savills, and iO Partners. With this acquisition, real estate assets now represent 81% of the fund’s portfolio, which has an estimated market value of approximately CZK 6.1 billion. By the end of May 2025, nearly 56,000 shareholders were invested in the fund.

REICO LONG LEASE fund was launched in May 2021 and is designed for conservative to moderately dynamic investors seeking stable returns from real estate-backed investments. Its current portfolio includes properties in the Czech Republic, Poland, and Slovakia, with a target annual return of 4 to 6%.

Trial assembly completed for main building of Henryk Arctowski Polish Antarctic Station

Dekpol Budownictwo and Andrewex Construction have completed the trial assembly of the new main building for the Henryk Arctowski Polish Antarctic Station. The project, commissioned by the Institute of Biochemistry and Biophysics of the Polish Academy of Sciences on behalf of the Ministry of Science and Higher Education, marks the final stage in the station’s redevelopment.

The trial assembly was carried out in May 2025 at Andrewex Construction’s production facility in Cierpice near Toruń. It involved the temporary erection of roughly one-third of the structure. This process allowed the construction team to verify the structural design, confirm compliance with technical specifications, and identify potential issues that could affect installation in the Antarctic environment. The structure will now be dismantled, packed, and prepared for shipment by sea.

According to Dekpol’s Technical Director Michał Jakubczyk, pre-assembly is essential for projects in remote and challenging locations. Given the 14,000-kilometre distance and limited infrastructure in Antarctica, preparation in Poland is critical to reduce risks and ensure continuity once work begins on-site.

Work began in March 2025 with the installation of prefabricated foundations and the steel base structure. In subsequent weeks, the wooden structural components, ceiling elements, and façade panels were added. Many components were produced using semi-automated prefabrication lines to ensure quality and efficiency. Dekpol handled the foundations and steel elements, while Andrewex was responsible for the timber structure, ceilings, and façade panels.

Andrewex’s Serafin Jerzy Szyszka emphasized that prefabrication was essential for meeting the construction timeline, noting that around 95% of housing elements will be preassembled. This will reduce the amount of on-site work required under harsh Antarctic conditions.

Equipment and staffing used in the trial closely mirrored what will be deployed in Antarctica, including cranes and telescopic handlers. Members of the team that will carry out the final assembly also participated in the trial to gain practical experience and ensure operational readiness. Approximately 50 personnel were involved in the pre-assembly process.

The structure and technical equipment will be shipped from the Port of Gdynia to Antarctica, with final construction work scheduled to begin at the end of 2025. Tasks will include sealing the building against energy loss and air leakage, followed by interior finishing in April 2026.

The main building will stand over 10 metres tall and rest on an 80-tonne steel support structure. It features more than 220 cubic metres of glued spruce timber, nearly 400 ceiling panels, and over 600 prefabricated façade panels covered with weather-resistant sheet metal. Installation will involve 76,000 screws, 130 high-resistance glass windows, 49 dome skylights, and over 1,300 metres of ventilation ductwork.

Dekpol Budownictwo has been involved in the redevelopment of the Arctowski Station since 2020, having already constructed the station’s foundation, a garage hall, and a floating equipment hall. Andrewex previously provided laminated timber for Polish Antarctic facilities as far back as the 1970s. In 2024, the consortium signed a contract for the final stage of the redevelopment, including the construction of the new main station building.

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