Arkadia shopping centre in Slovenia sold to SES Spar European Shopping Centers

Generali Adriatic Value Fund, managed by Generali Investments Slovenia and advised by Peakside Capital, has signed an agreement for the sale of the Arkadia shopping centre in Domžale, Slovenia. The buyer is SES Spar European Shopping Centers. The transaction, signed on 11 June 2025, is subject to approval by the Slovenian Competition Protection Agency. Financial details were not disclosed.

Arkadia, located northeast of Ljubljana, comprises 19 retail units with over 11,000 square metres of leasable space and 350 parking spaces. The centre is fully leased and includes a mix of international and local tenants. Its location near the Ljubljana–Maribor motorway offers strong connectivity for both customers and retailers.

Peakside Capital and Generali Investments Slovenia acquired the property in 2018 through the Generali Adriatic Value Fund, Slovenia’s first regulated alternative real estate investment fund. The fund focuses on generating income and long-term value from investments across the commercial real estate sectors in Southeast Europe.

Christopher Smith, Head of Portfolio Management CEE at Peakside Capital Advisors, stated that the transaction reflects the outcome of a strategy focused on active asset management. He added that the firm continues to seek investment opportunities in the region.

Russia’s exports grew sharply in 2024 despite western sanctions

Russia recorded nearly a 20% increase in exports in 2024, according to a study published by the German weekly Der Spiegel, based on research by the Cologne Institute for Economic Research (IW). The analysis indicates that Russia generated approximately USD 330 billion in export revenues last year, despite multiple Western sanctions imposed in response to its war in Ukraine.

The report highlights a major shift in Russian trade strategy, with a growing focus on countries in the Global South. Nations such as India and China have become key markets for Russian oil and gas, contributing substantial revenue to the Russian state budget.

Trade with Western countries, including Germany, Italy, and the United States, has declined sharply—by as much as 92%—following the sanctions. However, the study notes that Russia has increased exports to other countries, including Hungary (an EU member), Brazil, Turkey, and Israel. Russian authorities have publicly stated that the country has adapted to the sanctions regime by cultivating new trading partners.

While the Kremlin has acknowledged the economic strain resulting from sanctions, it has also ramped up its focus on supporting the war economy. President Vladimir Putin has repeatedly emphasized Russia’s commitment to maintaining its military export obligations despite the ongoing conflict in Ukraine.

To counter Russia’s export gains and reduce its wartime revenues, the IW recommends stricter measures. One suggestion is to lower the EU’s current price cap on Russian oil, which is set at USD 60 per barrel. EU member states are currently debating a reduction to USD 45 per barrel, while Ukrainian President Volodymyr Zelensky has called for a cap of just USD 30.

The IW also advises more aggressive action against the so-called Russian “shadow fleet”—tankers that operate without proper insurance or documentation and are used to transport Russian oil to countries like India, effectively bypassing sanctions.

Source: Der Spiegel, IW & CTK

Czech Republic organizes repatriation flight for citizens in Israel

The Czech Republic is dispatching a repatriation flight today to assist its citizens currently in Israel. The flight will accommodate those who have registered with the Czech embassy in Tel Aviv. The Ministry of Foreign Affairs has not disclosed additional details due to security concerns.

In parallel, several Czech nationals are expected to return via a Slovak-organized repatriation flight from Amman, Jordan, to Bratislava. The operations come amid escalating conflict between Israel and Iran, which has resulted in the closure of Israeli airspace and the suspension of commercial flights between Israel and Prague since Friday.

The Czech Foreign Ministry has issued a warning against travel to Israel and advised against visiting Lebanon and Jordan. It has also urged all Czech citizens to leave Iran.

As of the weekend, the Drozd travel registration system listed 144 Czech nationals in Israel, 50 in Jordan, 55 in Lebanon, and two in Iran. The Ministry also noted that several hundred Czech citizens reside in Israel long-term.

The conflict began late Friday night with Israeli airstrikes targeting Iranian military and nuclear facilities. Israel has stated the strikes were intended to halt Iran’s alleged nuclear weapons program, a claim Iran denies. Since then, Iran has launched multiple rocket and drone attacks on Israeli territory. Both countries have reported casualties, including among civilians.

Source: CTK

Residential property prices in Slovakia rise over 12% year-on-year in Q1 2025

Residential property prices in Slovakia increased by more than 12% year-on-year in the first quarter of 2025, according to revised data published by the Statistical Office of the Slovak Republic on 16 June 2025. The revision, based on official data from the Real Estate Cadastre, replaced earlier estimates derived from advertised prices on internet portals.

On a quarterly basis, residential property prices rose by 2.1% in Q1 2025. This growth was slightly lower than the preliminary figure published in late May and marked a slower pace than in the final quarter of 2024. The increase was driven primarily by new dwellings, which rose 2.8%, while prices of existing dwellings grew at a slower rate of 2.0%.

The updated data also revealed notable regional differences. Quarter-on-quarter price growth was recorded in seven of Slovakia’s eight regions, with only Košice Region showing no increase. The most significant growth was seen in Trnava Region, where prices rose by 4.9%. In most regions, existing dwellings experienced faster price increases than new ones. However, the reverse was observed in Bratislava and Banská Bystrica Regions. Despite the upward trend, no region recorded quarterly price growth above 6% for either type of dwelling.

Year-on-year, residential property prices increased by 12.2% across Slovakia, representing the most significant annual growth since the third quarter of 2022. Prices of existing dwellings saw a sharper rise of 12.4%, while new dwellings increased by 11.2%.

All eight Slovak regions experienced year-on-year price growth. The smallest increase was in Trnava Region (7.3%), while Nitriansky Region recorded the highest at 18.5%. Double-digit growth was also seen in Prešov, Bratislava, and Žilina Regions. In several regions, existing dwellings outpaced new dwellings in terms of price growth, with Bratislava, Žilina, and Nitra Regions all reporting increases above 15% for existing housing. Price increases for new dwellings exceeded 15% only in Bratislava and Trenčín Regions.

In a long-term context, average residential property prices in the first quarter of 2025 were more than double their levels from 2010. Over the 14-year period, prices for new dwellings rose by over 70%, while prices for existing dwellings climbed by 115%.

Producer prices in May 2025: Industrial decline continues, services and construction rise

Producer price data for May 2025 shows a mixed landscape across sectors in the Czech economy. Industrial producer prices continued their downward trend, falling for the fourth consecutive month, while prices in agriculture, construction, and services maintained year-on-year growth.

According to the Czech Statistical Office (CZSO), industrial producer prices dropped by 0.6% month-on-month and were 0.8% lower than in May 2024. “The decline in industrial prices continues, driven by reductions in key sectors such as energy and chemicals,” said Vladimír Klimeš, head of the Industrial and International Trade Prices Statistics Unit at CZSO.

Agricultural Producer Prices
Agricultural prices decreased by 1.5% compared to April. This decline was influenced by lower prices for cereals (-0.9%) and eggs (-6.1%), though increases were recorded for pigs for slaughter (+5.6%), potatoes (+3.5%), and cattle for slaughter (+1.5%). On a year-on-year basis, agricultural producer prices remained significantly higher—up 15.7%. Crop production rose by 16.1%, with notable increases in fruit (+36.3%) and oilseeds (+24.6%). Animal production rose 15.9%, driven by strong gains in prices for eggs (+43.6%), milk (+19.5%), and cattle (+27.1%), despite a 9.0% decline in pig prices.

Industrial Producer Prices
Industrial prices fell 0.6% month-on-month, led by declines in ‘electricity, gas, steam and air conditioning’ (-2.7%) and ‘chemicals and chemical products’ (-1.3%). Price increases were seen in ‘basic metals’ (+1.4%) and ‘food products’ (+0.4%), especially ‘preserved meat’ (+1.4%) and ‘animal feeds’ (+0.9%). Year-on-year, industrial prices declined by 0.8%, with continued drops in energy-related categories including ‘electricity, gas, steam and air conditioning’ (-3.5%), ‘chemicals’ (-6.2%), and ‘coal and lignite’ (-10.2%). Food products rose 3.2%, with a strong gain in dairy products (+12.3%).

Among main industrial groupings, energy prices declined 5.9% y-o-y, while prices for consumer goods and capital goods rose by just over 2%. Excluding energy, industrial producer prices were up 1.4% compared to 0.6% in April.

Construction Prices
Estimated construction work prices increased by 0.4% month-on-month and were up 3.9% year-on-year. Prices for construction materials and products rose by 0.1% m-o-m and 1.0% y-o-y.

Service Sector Prices
Service producer prices in the business sector rose by 0.2% from April, and were 4.4% higher than a year ago. The most significant monthly increases were in entertainment-related services such as ‘motion picture, video and music publishing’ (+7.7%) and ‘broadcasting services’ (+4.0%). Prices also rose for advertising (+1.8%) and engineering services (+1.1%). Declines were noted in ‘employment services’ (-1.3%) and ‘information services’ (-1.8%). Excluding advertising, service prices were flat m-o-m and up 3.4% y-o-y.

EU Comparison – April 2025
According to Eurostat’s preliminary data, industrial producer prices in the EU27 declined by 2.1% m-o-m in April. Notable decreases were recorded in Bulgaria (-4.9%), France (-4.3%), and Ireland (-4.0%). Prices also fell in Czechia (-0.8%), Germany (-0.7%), and Poland (-0.6%). On a year-on-year basis, EU-wide industrial prices rose by 0.6%, with the highest increases seen in Bulgaria (+17.0%), Ireland (+5.4%), and Greece (+5.3%). Czechia posted a y-o-y decline of 1.3%.

The data highlights continued deflationary pressures in industrial production across Europe, while domestic sectors such as construction and services remain more resilient.

Trammell Crow company begins construction of industrial development in Kerpen, Germany

Trammell Crow Company (TCC) has started construction on a new speculative industrial development in Kerpen, located in Germany’s Rhine-Ruhr region. The project is being developed in partnership with Cain International and is scheduled for completion in the first quarter of 2026.

The site, situated on Hüttenstraße approximately 23 kilometres west of Cologne, will feature two logistics buildings with a total area of 28,117 square metres. This includes 23,258 square metres of warehouse and production space, 3,129 square metres of mezzanine, and 1,730 square metres of office space. The facilities are being built on a 46,202 square metre brownfield plot and are being designed to meet modern operational and environmental standards, with both buildings aiming to achieve BREEAM Excellent certification.

The location offers direct access to the A4 motorway and is also near the A1 and A3, providing strong transport connectivity across Germany and to international destinations. The development is within reach of major transport hubs, including Cologne Bonn Airport, the Port of Cologne-Niehl, and the European seaports of Rotterdam and Antwerp. It also benefits from accessibility to cargo airports in Liège and Frankfurt.

The project is part of the Hüttenstraße industrial zone, an established business area that includes both multinational companies and smaller enterprises. Public transport connections are available nearby, with a bus stop adjacent to the site and a train station 2.3 kilometres away.

Construction began in March 2025, and early access to the premises can be arranged by agreement. CBRE is serving as the lead leasing agent.

Sanitary installation design sector faces crisis as low margins drive out skilled engineers

The sanitary installation design sector in Poland is undergoing a severe crisis, with industry insiders warning of systemic challenges far beyond the usual issues of delayed payments. Design offices are being forced to accept projects that fail to cover their operating costs, leading to business closures and an alarming exodus of qualified engineers from the profession.

“Offices take on work that’s financially unsustainable just to stay in business—or they shut down. Engineers, meanwhile, are leaving the field altogether,” says Przemysław Tkaczuk, a sanitary installation engineer and co-owner of PM Projekt.

The root cause is consistently low profit margins, which have destabilized the sector and discouraged new talent from entering the profession. Young graduates see little incentive to pursue careers in a field where financial rewards are minimal. “Many engineers earn less than supermarket cashiers,” Tkaczuk notes. “It’s hard to justify staying in a profession, no matter how interesting, if it doesn’t provide basic financial security.”

This outflow of professionals is creating significant skills gaps. A shortage of qualified HVAC and sanitary designers is already leading to errors in planning, project delays, and even poor selection of key technologies such as heat pumps—issues that ripple through the wider construction sector.

“The consequences extend well beyond our industry,” warns Marcin Kosieniak, an MEP specialist, forensic expert in sanitary design errors, and co-owner of PM Projekt. “Design is an early, critical link in the construction chain. Mistakes or delays at this stage cascade into major problems during execution.”

Both Tkaczuk and Kosieniak stress that the situation requires immediate intervention. One potential remedy, they suggest, would be to implement minimum fee standards for design services—similar to regulated professions such as architects or property valuers. This could help prevent destructive price competition and ensure that basic project quality and viability are maintained.

They also call for systemic investment in education and professional development. “We need to support future engineers,” Kosieniak explains. “That means offering scholarships and grants for students in sanitary engineering, building mentoring networks with experienced professionals, and promoting awareness of the value and impact of this career path.”

As Kosieniak puts it, “Once students are introduced to the field, they often find the work deeply engaging—but too many never get the chance. If we don’t act now, the situation could become irreversible. This is a shared responsibility across designers, investors, authorities, and educational institutions.”

Brno Jedna: Revitalizing Brno’s industrial past into a functional urban future

In a recent Q&A with Petr Pospíšil, Director of the Brno Branch at PSN, he discussed the upcoming transformation of Brno’s eastern district through the Brno Jedna project. The residential development, situated along Plynárenská Street, is set to revitalise a former industrial site by introducing a modern urban neighborhood that thoughtfully incorporates the area’s historical identity.

The first stage of the project consists of two residential buildings—Neon and Xenon—designed by architecture studio A8000. These buildings will offer a total of 188 apartments, including a variety of layouts: 109 one-room units, 66 two-room units, 11 three-room units, and two larger four-room apartments on the upper floors. Many apartments come with balconies or private gardens to enhance liveability for a range of residents, including young professionals, small families, and retirees.

According to Petr Pospíšil, Director of the Brno Branch at PSN, the developer behind the project, the construction of Neon and Xenon is scheduled for completion in the fourth quarter of 2027. “Once these are completed, the next phases will follow, adding more residential buildings and public spaces. We’re steadily converting this former industrial area into a vibrant and integrated urban neighborhood,” he said.

The market has responded positively since the project launch, Pospíšil confirmed, although specific sales figures have not yet been released. “Interest is high, particularly among young families and professionals working in Brno. We’re also seeing interest from long-term investors. The stabilising property market is encouraging more buyers who are purchasing for personal use rather than investment alone,” he noted.

Brno Jedna’s architecture is designed to reflect the industrial history of the site, incorporating raw materials, exposed metalwork, and large-scale windows. The buildings aim to balance aesthetic reference with practical living, featuring compact, functional layouts and shared amenities such as rooftop terraces, an inner courtyard, an outdoor workout area, and spaces for urban gardening.

Additional facilities include a gym, laundry room, bike storage, and an on-site café. Security elements such as street lighting and surveillance systems are integrated to ensure a safe environment for all residents. Underground parking and private storage spaces are also part of the offering.

Sustainability plays a central role in the project. “We’re incorporating solar panels, rainwater retention systems, and electric vehicle charging stations. Residents will also have access to shared bicycles and extensive bike storage,” said Pospíšil. The development promotes compact living with minimal environmental impact, aligning with broader efforts to reduce urban sprawl and dependence on cars.

Proximity to the city center—just five minutes away—offers strong connectivity. Future city plans to develop a riverside promenade along the nearby Svitava River and expand cycling infrastructure are expected to further improve the district’s accessibility and appeal.

In terms of investment potential, Pospíšil sees Brno Jedna as competitive both within the city and when compared to similar mid-sized European markets. “The location, thoughtful design, and preserved industrial character distinguish it from more standard developments. It offers lasting value for both residents and investors.”

The development also fits neatly into Brno’s long-term urban planning strategy, which encourages the creation of dense, multi-functional city districts. “Brno Jedna respects the industrial past of the location while introducing high-quality public spaces that support a more active city life. It will also connect with the revitalised riverside area, helping link this part of the city with other regenerated zones such as Radlas and Špitálka,” Pospíšil added.
Regarding pricing, the project is positioned in line with its central location and quality of design. However, a diverse mix of apartment sizes is intended to keep the development accessible. “We are cooperating with financial institutions to support first-time buyers and make ownership more attainable for younger and local residents,” Pospíšil explained.

With construction of its initial phase underway and broader plans already in motion, Brno Jedna represents one of the city’s most ambitious residential regeneration efforts—aiming to create a new urban district that connects Brno’s past with its evolving future.

DIW Berlin raises German growth forecast amid signs of recovery, but warns of structural challenges

The German economy is showing early signs of recovery, prompting the German Institute for Economic Research (DIW Berlin) to significantly revise its growth forecast upwards. According to its latest summer outlook, Germany’s GDP is expected to grow by 0.3 percent in 2025 and by a stronger 1.7 percent in 2026. These projections are 0.2 and 0.6 percentage points higher than the institute’s spring forecast. The upward revision is attributed to a stronger-than-expected start to the year, driven by rising private consumption and a surge in exports—partly due to anticipatory purchases ahead of anticipated US tariffs.

The momentum from early 2025 is expected to continue into the second quarter, although a slowdown is anticipated later in the year as the positive effects of early export activity wane and trade barriers begin to take their toll. The outlook remains mixed, with persistent uncertainty from US trade policy and structural weaknesses in the German economy—such as declining competitiveness and labour shortages—still weighing on growth prospects. However, DIW Berlin sees signs of a stronger recovery starting at the end of 2025 and continuing into 2026, supported by expansive fiscal policy and improving financing conditions.

A key driver behind the improved forecast is Germany’s recently adopted investment package, which includes a €500 billion infrastructure fund over twelve years and the temporary suspension of the debt brake for defence spending. While these measures are not expected to have a substantial impact in 2025 due to planning delays and the late budget adoption, fiscal stimulus worth around €25 billion is projected for 2026, potentially boosting GDP by an additional 0.8 percentage points. This could lead to a slight increase in inflation, with DIW projecting a rise from 2.1 percent in 2025 to 2.2 percent in 2026.

DIW Chief Economist Geraldine Dany-Knedlik acknowledged the short-term boost but cautioned that the underlying structural issues remain unresolved. She noted that the investment package could provide a welcome impulse, especially for infrastructure, but warned that Germany’s foreign trade performance is likely to remain subdued. Ongoing trade tensions, particularly with the United States, continue to hinder external demand, while the competitiveness of German companies—especially in comparison to Chinese firms—is under pressure.

Despite these challenges, private consumption is providing some positive momentum. Consumer confidence improved in the first quarter, evidenced by a drop in the savings rate. However, lingering fears over job security could dampen this trend, as the unemployment rate is forecast to rise slightly over the coming months. Meanwhile, low interest rates and government support are helping to gradually improve the investment climate.

Internationally, Germany’s recovery could have a positive spillover effect on other EU member states and the broader eurozone. However, the global outlook remains clouded by US trade policy, which is expected to slow growth not only in export-oriented economies like Germany, but also in the US itself. DIW forecasts US economic growth of just 1.4 percent in 2025 and 1.6 percent in 2026, down from 2.8 percent last year. Global GDP is projected to rise by 3.3 percent this year and 3.4 percent next year.

DIW President Marcel Fratzscher warned that the biggest risks to Germany’s recovery may lie within its own political system. He cited the potential for renewed domestic and EU-level political gridlock, as well as uncertainties around fiscal planning, taxation, and social spending. He urged the federal government to quickly adopt budgets for 2025 and 2026, resolve internal divisions, and articulate a clear, forward-looking policy agenda.

Fratzscher remained cautiously optimistic. If the government can fully implement its investment strategy and foster a renewed sense of public confidence, Germany could be poised for a more robust economic recovery in 2026 and 2027. However, he noted that many of the country’s longer-term structural challenges—such as energy transition, demographic pressures, and productivity concerns—will continue to require attention well beyond the current forecast horizon.

Source: DIW Berlin

BARTEK Real Estate launches to deliver sustainable rental housing in Poland

BARTEK Real Estate, a newly established Irish-led property platform, has entered the Polish market with the aim of developing sustainable, professionally managed rental housing in cities with high population growth and rental demand. The company will focus on Poland’s emerging Private Rental Sector (PRS), where institutional investment remains limited, despite rising demand.

The firm was co-founded by Conor Gleeson, an Irish finance and private equity professional, and Michal Stys, CEO of OPG Property Professionals. Together, they bring more than three decades of combined experience in real estate, finance, and urban development across Ireland and Poland. BARTEK plans to deploy capital into ESG-compliant multifamily rental projects in cities such as Łódź, Wrocław, Katowice, and the Tricity region. The platform is targeting project values in the range of €20–40 million and expects to generate internal rates of return above 20 percent over a typical five-year investment horizon.

BARTEK’s strategy is based on a project-by-project investment model and includes both forward purchase agreements and joint ventures with local developers. Their developments will aim to meet the growing demand for high-quality, professionally managed rental housing—an area that remains underdeveloped in Poland. According to PwC, the Polish PRS market remains small but is expanding quickly, with institutional rental stock growing by 32 percent in the past year alone and projected to exceed 80,000 units by 2028. This growth is largely driven by a nationwide housing shortage, high affordability barriers to homeownership, and a shift in residential preferences toward flexible rental living.

The company’s first project, called “Project ART,” is located in Łódź and is currently underway. It serves as a starting point for a wider pipeline of over 50 evaluated projects across the country. The selection criteria for these projects include ESG performance, demand fundamentals, development scalability, and track record of the development partner.

A partnership with OPG Property Professionals provides local market expertise and development support. OPG is known for urban redevelopment projects such as OFF Piotrkowska and the Art Modern residential scheme in Łódź. BARTEK’s leadership emphasizes the intention to develop housing that integrates sustainability and community-oriented design, rather than focusing solely on yield.

The company is guided by a board comprising senior figures from Irish legal, investment, and property sectors, including William Gleeson (Founder of OPG), David Dillon (Co-Founder of Dillon Eustace), and Niall Molloy (Founder of Echelon Data Centres). The board provides governance and strategic direction as BARTEK prepares to scale its operations.

With demand for rental housing rising and institutional PRS still in early stages, BARTEK positions itself as an early mover in a market that is expected to attract more structured capital over the coming years.

Photo: William Gleeson (Founder of OPG) and Niall Molloy (Founder of Echelon Data Centres)

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