CONTERA introduces CITYSITE: A new urban concept for flexible business spaces

The Czech development and investment company CONTERA has launched CITYSITE, a new urban concept designed to offer flexible, high-quality spaces for a range of business needs. Combining modern architecture with an emphasis on advanced technologies, accessibility, and sustainability, CITYSITE is being developed in four locations: Říčany, Liberec, Ostrava, and Bratislava.

CITYSITE is based on the principle of Small Business Units, designed to adapt to diverse uses such as office space, showrooms, medical practices, research facilities, laboratories, sports and entertainment centers, restaurants, or cafés. The units are easily modifiable, allowing for customization according to specific tenant requirements, according to Martin Budina, Development Director and Partner at CONTERA.

The project aims to offer a business environment that is both functional and flexible, supporting a wide range of commercial activities. Emphasis has been placed on achieving high energy standards, which helps to lower carbon emissions and contributes to the long-term sustainability of the buildings. High-quality architectural design is also an integral part of the project, ensuring that each site provides a pleasant and efficient working environment.

The CITYSITE developments are located on revitalized brownfield sites, reflecting CONTERA’s commitment to redevelop underused areas and unlock their potential. The concept is designed to maintain a consistent standard of quality and a unified design across all locations, while also allowing for minor adjustments to fit the local environment and conditions.

Environmental sustainability is a key aspect of CITYSITE. Considerable attention is given to landscaping and the design of public spaces within the developments. Some buildings will incorporate green roofs, which help to moderate building temperatures and reduce overall energy consumption. Sustainable transport is also encouraged through the inclusion of electric car charging stations, bicycle facilities, pedestrian pathways, and proximity to public transportation links, ensuring easy access both by car and public transit.

CITYSITE developments integrate intelligent technologies to support environmentally responsible operations. Each site features photovoltaic systems for on-site renewable energy generation, along with infrastructure to support electric mobility and energy-efficient heating and cooling systems using heat pumps. Water management practices include rainwater collection and on-site absorption, further contributing to the projects’ sustainability goals.

CONTERA’s CITYSITE concept reflects a broader vision of creating flexible, energy-efficient business spaces that are adaptable to future needs, while also promoting environmentally responsible urban development.

Housing affordability in Prague continues to deteriorate amid supply challenges

Nearly 150,000 new apartments are under preparation in Prague, according to the latest analysis by Central Group. However, delays in the permitting process are limiting their entry to the market, contributing to an ongoing shortage of available housing. This shortage has resulted in a further decline in housing affordability. The latest CG Index shows that it now requires 15.5 years of average gross salary to purchase a new 70-square-metre apartment in the capital, maintaining Prague’s position as the least affordable city for housing in Central Europe.

In the first quarter of 2025, approximately 2,550 new apartments were sold, representing a nearly two-thirds increase compared to the same period last year. This marks the strongest first-quarter sales performance in more than 15 years. However, the supply of new apartments has declined by 6% since the beginning of the year. The imbalance between supply and demand has led to a 10% year-on-year increase in new apartment prices, the highest rate among comparable cities in the region.

High Number of Apartments in Planning, Slow Progress to Market

Despite the high volume of projects—around 150,000 apartments at various stages of development—the permitting process remains slow. Historically, Prague has approved around 6,000 new apartments per year, while estimates from the Institute of Planning and Development (IPR) suggest that at least 10,000 units are needed annually to meet demand. Over the past two decades, the housing shortfall in Prague has grown by nearly 100,000 units.

Dušan Kunovský, founder and CEO of Central Group, noted that addressing the delays in permitting is essential but not sufficient. He highlighted the need to improve spatial planning and reduce regulatory complexity, pointing to the recent approval of a zoning plan change in Žižkov, which took over 16 years to complete. Kunovský also emphasized that excessive regulation increases construction costs and slows development.

Economic Impact of Delays

The report suggests that expediting the permitting process could unlock significant economic benefits. Housing projects currently planned in Prague could accommodate approximately 300,000 people and generate considerable economic activity. Construction has a large multiplier effect, and the state could gain nearly CZK 190 billion in VAT revenues from these projects, with additional contributions to municipal budgets.

Kunovský argues that prolonged delays increase apartment prices by at least 15%, impacting public finances, businesses, and homebuyers.

Prague’s Housing Affordability Remains the Lowest in the Region

The CG Index indicates that it now takes 15.5 years of gross salary to purchase a 70-square-metre apartment in Prague, an increase from six months ago and a substantial rise compared to 2015. This makes Prague the least affordable capital for housing in Central Europe.

The Index is based on the average gross monthly salary in Prague (CZK 63,106) and the average price of a new 70-square-metre apartment (CZK 11,756,291). It draws from data provided by the Ministry of Labour and Social Affairs and a joint market analysis by Central Group, Trigema, and Skanska.

Proposals to Improve Housing Availability

Central Group has outlined four key recommendations to improve housing availability, aligning with suggestions from the National Economic Council of the Government (NERV):
1. Accelerate and Simplify Permitting: Streamlining the permitting process is critical to increasing the supply of both private and public housing.
2. Reduce Construction Industry Overregulation: Simplifying construction standards could lower costs and encourage development while balancing environmental and affordability considerations.
3. Improve Spatial Planning: Reforming outdated zoning plans is necessary to ensure sufficient land availability for new developments and to better utilize brownfield sites.
4. Expand Affordable Housing Initiatives: Cities and municipalities should increase their role in affordable housing construction, potentially involving private sector developers and banks to leverage expertise and financing. The new DESIGN BUILD system proposed by the Initiative for Affordable Housing (IDB) could facilitate standardized, cost-effective municipal housing projects.

Central Group acquires land for new residential projects in Prague

Central Group, a residential developer in the Czech Republic, has expanded its land portfolio with acquisitions valued at CZK 6 billion. Over the past year, the company secured approximately 240,000 square metres of land across seven locations in Prague. The acquisitions will support the development of around 3,500 new apartments. In total, Central Group now holds land suitable for the construction of nearly 40,000 apartments intended to accommodate approximately 80,000 residents.

The most significant transaction involved the purchase of a five-hectare site near the Invalidovna metro station in Prague 8’s Karlín district, adjacent to the Olympic Hotel. This acquisition, described as one of the largest residential market transactions to date, will see the development of a new neighbourhood offering over a thousand apartments along with commercial spaces for services, shops, restaurants, and cafés. The planned development also includes contributions to the city and district exceeding CZK 325 million, covering, among other things, the construction and transfer of medical practices and office space to the Prague 8 district.

Central Group has initiated an urban planning workshop for the site, working in cooperation with the Prague City Council, the Prague 8 municipal district, and the Czech Chamber of Architects. The workshop will establish the development’s framework before moving on to an architectural phase. At least 20 architectural firms, both domestic and international, are expected to participate.

This structured approach to urban planning mirrors Central Group’s previous developments such as Park Quarter in Prague 3 and European Quarter in Prague 6, where workshops involving multiple architectural studios shaped the final design outcomes.

In addition to the Karlín project, the company acquired two plots in Prague 9, where it is already developing the Tesla Hloubětín project. Further acquisitions include two plots in Prague 5 for about 500 apartments and additional sites in Prague 4 and Prague 10, targeting approximately 1,000 new units combined. Central Group’s land bank now exceeds 1.5 million square metres across Prague.

Central Group has indicated that these acquisitions were financed internally without bank loans. The company, which has been active for 30 years, reinvests its earnings into development projects.

In project design, Central Group operates an in-house team of 120 architects and designers. It regularly holds architectural competitions and workshops, enabling collaboration with leading Czech and international firms. Past initiatives include a major international competition for the Centrum Nového Žižkova project, which attracted 98 studios from 30 countries. The winning design came from architect Eva Jiřičná’s AI DESIGN studio, supported by the London-based firm ARUP. Another example is the Kavčí Hory Residence in Prague 4, developed in cooperation with the Institute of Planning and Development (IPR) and the Czech Chamber of Architects (ČKA), where architect Josef Pleskot’s AP studio was selected.

Revetas Capital renews 10,190 sqm lease at B4B in Krakow

Revetas Capital has secured a lease renewal with a key tenant at the Bonarka for Business (B4B) office complex in Krakow. The tenant, occupying 10,190 square metres in Building G, has been based at B4B since 2012.

Antonio Pomes, Director and Country Head of Portfolio Management at Revetas Capital, commented that the lease extension reflects the tenant’s continued commitment to the location and the technical standards offered at B4B. He noted that the facility supports sustainability initiatives and provides an environment aligned with the company’s operational needs. Revetas Capital continues to implement environmental, social, and governance (ESG) principles across its portfolio.

Property management services at B4B are provided by CERES, which supports tenant operations and facility management. The tenant was represented by Cushman & Wakefield during the lease renewal process.

Vlněna in Brno expands with new technology tenants

The Vlněna complex in central Brno is expanding its tenant base with four technology companies—Sanezoo, Avenga, Lifeliqe, and Futured Apps—leasing a combined total of more than 2,500 square metres of office and laboratory space. The move strengthens Brno’s position as a hub for international technology businesses.

Sanezoo, specialising in robotics and visual quality control, has relocated from Bochner Palace to a 451-square-metre space in Building D. The new premises will accommodate expanded research and testing facilities. The company has also installed robotic arms at the new location to enhance product development.

Avenga, a technology and consulting firm with operations across Europe and globally, has leased 987 square metres in Building B. The space is intended to support the company’s expansion in the Czech market and provide a base for its local employees.

Lifeliqe, which develops virtual reality applications for education and training, has taken 478 square metres in Building B. The company plans to use the new premises to further product development and engage with other businesses in the area.

Futured Apps, a developer of mobile applications for clients such as Škoda Auto and Decathlon, has leased 590 square metres across two floors in Building I. The new headquarters will support the company’s operations and growth plans.

The Vlněna complex includes several buildings certified under environmental and technology standards, including BREEAM Excellent for Buildings A, B, C, and D, and targets BREEAM Outstanding, WELL Platinum, and WiredScore Platinum certifications for Building I. The site also offers coworking spaces through Clubco, which provides facilities for events, training sessions, and networking among tenants.

“We are pleased that additional technology companies have chosen Vlněna for their operations. It reflects the demand for modern office space and a collaborative working environment,” said Tomáš Strýček, Senior Business Developer at CTP Czech Republic.

The recent leases contribute to Brno’s ongoing development as a centre for technology companies within the Czech Republic and the broader Central and Eastern European region.

Consumers’ green preferences drive innovation in clean technologies, study finds

Environmentally conscious consumers are driving companies toward greener innovation, particularly in industries like automotive manufacturing. A study by the German Institute for Economic Research (DIW Berlin) reveals that when households develop stronger environmental and climate protection attitudes, companies respond by increasing investment in clean technologies such as electric, hybrid, and hydrogen-powered vehicles. The study highlights that these consumer-driven changes have a more sustained impact on innovation than external factors like rising petrol prices.

The research, which examined data from U.S. households between 2006 and 2019, utilized a “green attitude index” derived from Google search trends along with patent application data from the U.S. Patent and Trademark Office. This approach allowed researchers to link shifts in consumer interest in environmental issues to the number of patents filed for clean automotive technologies.

Findings indicate that when consumers show greater willingness to purchase environmentally friendly products, car manufacturers adjust their research and development strategies accordingly. Over time, knowledge and innovation in clean technologies increase significantly. In contrast, although rising petrol prices also encourage the development of cleaner technologies, their influence tends to be short-lived and less consistent.

Sonja Dobkowitz, a research associate in the Macroeconomics Department at DIW Berlin, emphasized the importance of consumer behavior in driving sustainable innovation. “Green consumer preferences are a hitherto underestimated lever for greater climate and environmental protection,” she explained. According to Dobkowitz, companies are keenly aware of shifts in consumer sentiment and incorporate these preferences into their strategic planning and innovation investments.

The study suggests that policymakers should leverage this connection by ensuring greater transparency about the environmental impact of products. Providing clearer information not only on production processes but also on the environmental footprint during the entire lifecycle of a product could further strengthen consumers’ ability to make informed choices. “Companies take consumer attitudes into account in their innovation decisions. This can have a big impact – policymakers should make greater use of this insight in environmental and climate protection measures,” Dobkowitz added.

As global efforts to combat climate change intensify, the findings underline the powerful role that consumer behavior can play alongside regulatory measures. Encouraging environmentally responsible consumption through better information and transparency could thus be a critical element in promoting sustainable technological development.

Survey shows persistent payment delays and rising financial risks for German companies

German companies continue to face challenges in managing financial risks in the current economic climate, according to the latest Payment Barometer survey conducted by international credit insurer Atradius. The survey highlights ongoing difficulties with late payments, an increase in bad debt, and pressure on liquidity in the business-to-business (B2B) sector.

According to the survey, 60 percent of German companies report a decline in their customers’ payment behaviour. On average, 57 percent of B2B transactions are impacted by overdue invoices. The proportion of uncollectible receivables remains at an average of eight percent, with the mechanical engineering sector particularly affected by liquidity pressures due to increased bad debt losses.

Despite these conditions, more than half of the companies surveyed have largely maintained their existing payment terms to customers in an effort to sustain business relationships. In the mechanical engineering sector, 80 percent of companies have either maintained or extended payment terms. Overall, 47 percent of B2B sales are made on credit, with average payment terms of 60 days.

Many companies are adjusting their financing strategies to address liquidity pressures. Approximately 43 percent are turning to invoice financing to support cash flow by using outstanding receivables as collateral. Some companies are also delaying payments to their own suppliers, although this carries the risk of creating liquidity bottlenecks across supply chains.

Atradius notes a trend toward combined strategies for managing payment risks. About 46 percent of companies, particularly in the automotive industry, are combining credit insurance with internal risk management measures. Firms in the construction and mechanical engineering sectors are placing greater reliance on external credit protection.

The survey also points to industry-specific challenges. The construction sector maintains a stable 49 percent share of B2B sales on credit, but around two-thirds of invoices are paid late. Bad debt losses in this sector have declined to five percent, indicating improvements in debt collection processes. Nevertheless, working capital remains tied up in inventories, increasing operational costs.

In the mechanical engineering sector, 52 percent of sales are made on credit, with more than half of invoices overdue. The proportion of uncollectible receivables is about 10 percent, and inventories continue to bind significant capital. Atradius observes that payment delays are creating additional liquidity challenges and raising concerns about the sustainability of supplier credit policies.

The automotive sector has seen a decline in the proportion of B2B credit sales, falling by 20 percent compared to 2024, while late payments have increased by 12 percent. However, bad debt losses have decreased, suggesting improved receivables management and tighter control over working capital.

Looking ahead, 62 percent of companies surveyed expect a rise in customer insolvencies over the next twelve months, with the figure reaching 66 percent among construction firms. At the same time, 30 percent anticipate further extensions in payment terms, while an equal proportion expect some suppliers to shorten terms, which could add further strain on liquidity.

Atradius concludes that companies are operating in a volatile environment where financial risks are becoming harder to manage without comprehensive strategies. Combining internal risk controls with external protection, such as credit insurance, is becoming increasingly important. Risk management approaches vary by industry, with construction companies showing greater reliance on external solutions, and mechanical engineering firms preferring a combination of internal and external measures.

MLP Group starts construction of new warehouse for Sarantis Polska

MLP Group has begun construction of a new warehouse facility for Sarantis Polska at the MLP Pruszków II logistics park. The groundbreaking ceremony was attended by representatives of MLP Group, Sarantis Polska, and general contractor BREMER. The project will add over 24,000 square metres of built-to-suit space, with completion scheduled for next year.

The warehouse is being developed specifically for Sarantis Polska within the MLP Pruszków II complex. Preliminary access to the facility is expected in November 2025, with full completion to follow. The design includes approximately 22,700 square metres of warehouse space, including a Very Narrow Aisle (VNA) zone of about 5,200 square metres intended to maximize storage efficiency. An additional 2,000 square metres will be designated for packaging operations, while the office area will cover 1,400 square metres. The warehouse will have a clear internal height of 12 metres. The building will undergo BREEAM certification, aiming for a rating of “Excellent”.

According to MLP Group, the investment responds to continuing demand for modern warehouse space, particularly given the growth in e-commerce and logistics sectors. The company emphasized its focus on expanding logistics parks with facilities designed for flexibility and sustainability.

Sarantis Polska noted that the new warehouse is intended to improve operational efficiency and accommodate future growth. The facility will also incorporate environmentally friendly technologies to align with the company’s sustainability objectives.

BREMER, the general contractor, indicated that the development will meet high standards for quality and energy efficiency. The company highlighted its experience in delivering build-to-suit projects and its collaboration with both the developer and tenant to ensure the facility is tailored to specific operational needs.

Graphene Partners has been involved in the project, assisting Sarantis Polska with the selection of the developer, facility design, technology choices, and logistics planning. The consultancy continues to coordinate the construction process to ensure that the project remains on schedule and meets required specifications.

Sarantis Polska has been working with MLP Group since 2001. Initially leasing 5,000 square metres, the company has expanded its space fivefold over the years. Upon completion of the new warehouse, Sarantis Polska plans to consolidate its operations and vacate two smaller units currently in use.

Sarantis Polska is part of the Sarantis Group, a manufacturer and distributor of cosmetics, household cleaning products, and consumer goods. Founded in 1964 in Athens, the group operates in 13 European countries and exports to more than 50 markets. In Poland, its brands include Jan Niezbędny, Stella, Anna Zaradna, Kolastyna, Luksja, and STR8. The group also produces private label products for retail chains in Poland and Europe.

MLP Pruszków II is a logistics centre located near Warsaw in the Brwinów municipality, 5 kilometres from Pruszków. It is the largest logistics park in the region, with a planned total leasable area of 427,000 square metres. Several buildings within the park have obtained BREEAM certification. Photovoltaic installations are being added to rooftops in line with the company’s ESG strategy.

The site has access to major transport links, situated between local road No. 760 and the A2 motorway, with a connection to the Pruszków-Żbików junction. Proximity to international railway lines enhances the park’s logistical advantages for both domestic and international distribution. Additional transport infrastructure includes a bus stop and a Nextbike bicycle rental station.

Senior living market in Europe: Demographic shifts and investment opportunities

A new whitepaper by Periskop Living highlights the senior living sector’s emergence as a significant asset class in Europe, driven by demographic changes and evolving investor strategies in an uncertain economic environment.

With an aging population across Europe, the demand for senior housing is poised for robust growth. The whitepaper shows that by 2055, people aged 65 and over will represent nearly 30% of the European Union’s population, up from 21.6% in 2024. Countries like Italy, Germany, France, and Spain are at the forefront of this shift. In Italy, the share of those over 65 is expected to reach around 34%, while Germany’s proportion will rise to 28%, buoyed by continued net immigration.

At the same time, the number of healthy life years—an important metric for assessing the potential need for medical and care support—remains relatively low. In Germany, for example, the average male can expect about 60.7 healthy years, followed by a prolonged period where support services are likely necessary.

From an economic perspective, Germany stands out for its stability. With a GDP per capita of €39,190 and a low unemployment rate of 3.5%, it maintains a strong fiscal position compared to its European peers. Although Germany’s debt-to-GDP ratio is expected to rise to around 85% following the approval of a €500 billion infrastructure fund, it remains below the debt levels of countries like Italy and France.

Germany’s senior living market benefits from this economic stability and a well-regulated care system. The country’s social care insurance covers almost the entire population, supported by a comprehensive funding structure that reduces investment risk. Unlike countries such as France and Italy, where care financing is more fragmented, Germany provides consistent and predictable funding for long-term care.

Real estate investment trends reflect growing interest in senior living. While traditional sectors like offices face uncertainty, alternative assets are gaining traction. In Germany, healthcare real estate transaction volumes rose to €1.3 billion in 2024, benefiting from improving financing conditions following interest rate cuts by the European Central Bank. Senior living properties are increasingly seen as resilient investments offering stable cash flows and lower volatility compared to equities.

The operator landscape for senior living facilities in Germany remains highly fragmented. The ten largest operators account for only about 14% of the market, suggesting significant room for consolidation. Sale-and-lease-back transactions and PropCo/OpCo structures are becoming popular strategies, enabling operators to unlock capital while providing stable rental income to investors.

Another key consideration is the comparison between investing in existing properties versus new developments. Existing senior living properties currently offer more attractive returns and lower risk compared to new builds, which face high construction costs and uncertainties. The cost of materials such as cement and bitumen remains elevated, and the construction industry continues to grapple with a high insolvency rate.

The whitepaper projects a need for an additional 372,000 senior living units in Germany by 2040, alongside the renovation of approximately 100,000 existing units. However, current development plans only cover about 304,000 new units, leaving a supply gap of nearly 168,000. This shortfall highlights a significant investment opportunity.

Regulatory developments are also influencing market dynamics. Some German states are easing building requirements, such as reducing the mandatory single-room quotas, creating a more favorable environment for investors and developers alike.

The German government’s €500 billion infrastructure fund, of which €100 billion is earmarked for social infrastructure, including healthcare, could further bolster the sector. Investments aimed at improving transport, energy, and digital infrastructure are expected to create locational advantages for senior living facilities, particularly in less densely populated regions.

Looking ahead, the senior living sector in Germany and across Europe is positioned to become a critical component of real estate portfolios. It combines demographic resilience with stable economic fundamentals and evolving regulatory support. For investors seeking long-term, secure returns, senior living offers a compelling proposition amid broader market uncertainties.

HIH Invest acquires Cecilienpalais office building in Düsseldorf

HIH Invest Real Estate (HIH Invest) has completed the acquisition of the Cecilienpalais, located at Cecilienallee 10 in Düsseldorf. The office building, constructed in 2010, offers 3,245 square metres of rental space across four storeys and features a natural stone façade. It is nearly fully occupied and includes 60 parking spaces in an underground car park. The property was acquired on behalf of the open-ended special fund ‘Deutschland Selektiv Immobilien Invest II’, though the purchase price has not been disclosed.

Situated along the Rhine in the Rheinboulevard submarket, the Cecilienpalais benefits from a stable and diversified tenant mix, providing consistent cash flow and value preservation. The building’s flexible floor plans and high-quality interior fittings are designed to support strong re-letting potential and broad usability for future tenants.

Daniel Asmus, Head of Transaction Management Office Germany at HIH Invest, noted that the property’s location was a decisive factor in the acquisition. Positioned near the Kennedydamm underground station, the building offers convenient access to local transport networks, with Düsseldorf’s main railway station and city centre reachable within minutes. Cecilienallee also borders Rheinpark Golzheim, a well-known recreational area.

The fund acquiring the property follows a strategy aligned with Article 8 of the EU Disclosure Regulation, focusing on energy-efficient office buildings in prime locations across Germany’s top seven cities and other growth centres. It currently delivers a distribution yield exceeding five percent annually.

Legal and tax due diligence for the acquisition was handled by Hogan Lovells, while Drees & Sommer conducted technical and ESG due diligence. On the seller’s side, CBRE acted as broker, with Clifford Chance managing legal due diligence and Brand Berger responsible for technical due diligence. The IC Immobilien Group served as the local management partner for the seller.

Photo: CBRE, photographer: Holger Peters.

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