Leroy Merlin joins the Góraszka Project

Nhood Services Poland, acting on behalf of Ceetrus Polska, has completed the sale of land in Góraszka to Leroy Merlin. The transaction will enable the development of a large-format DIY store that will form part of the multifunctional Góraszka Project and expand the commercial and service offering of the area.

The land purchase agreement was signed on 29 December 2025 between Leroy Merlin Inwestycje and Ceetrus Polska, with Nhood Services Poland acting as broker. Under the agreement, Leroy Merlin will develop a modern, single-storey DIY store providing home, flat and garden solutions. The store will have a built-up area of approximately 12,000 sq m and will be located in the northern part of the Góraszka Project, on a site covering more than 55,000 sq m.

Anna Będkowska, Project Manager at Nhood Services Poland responsible for the Góraszka Project, said that finalising the transaction represents an important step in the development of the scheme and reflects the potential of the location as a multifunctional destination serving local communities.

Marcin Witos, Development Director at Leroy Merlin, said that Góraszka is a strategic location for the company and aligns with its aim to remain close to customers. He noted that the new store will provide access to a wide product range as well as professional advice, workshops and tailored solutions for customers’ home and garden projects.

Leroy Merlin plans to start construction works in the third quarter of 2026. The investment will include a modern retail facility with a sales area, exhibition space and outdoor zones dedicated to garden inspiration. The development will also include unloading areas for suppliers, customer collection zones, full technical infrastructure, internal roads and a car park, integrated with the wider Góraszka Project.

Dominik Krupa, Project Manager at Leroy Merlin, said that the preparation and completion of the transaction required close cooperation with Nhood Services Poland and careful coordination of due diligence, contractual and planning processes. He added that the project is now ready to move into the construction phase.

According to Nhood Services Poland, public consultations carried out for the Góraszka Project highlighted demand from local residents for an expanded retail and service offer, including a DIY and home improvement store. The presence of Leroy Merlin is intended to address this need.

The Góraszka Project is being developed on the site of the former airport in Góraszka, near Warsaw, close to the junction connecting the S17 expressway with the Warsaw Southern Bypass (S2). The main retail and service complex within the project will offer nearly 40,000 sq m of retail space. Together with neighbouring developments, including the Leroy Merlin store and the existing Majaland Warsaw amusement park, the project is intended to create a combined shopping and leisure destination.

The total usable area of the investment, including facilities developed by partners, is expected to reach approximately 65,000 sq m GLA. In addition to retail and service space, the wider complex will include a water park, drive-through restaurants and a petrol station. Construction will be carried out in stages, beginning in 2026 with the development of technical infrastructure, followed by retail, service and partner facilities.

Ceetrus Polska is the main investor in the commercial component of the project. The development is being implemented in line with sustainable development principles. The Góraszka Project received a BREEAM Communities certificate in 2024, and the investor plans to seek BREEAM New Construction certification. The project is also participating in the MUQI certification process, which assesses the quality of mixed-use developments.

Peakside Capital Advisors appoints Steven Davis as Managing Director for CEE

Peakside Capital Advisors announces a change in its senior management structure. Steven Davis has been appointed Managing Director, Central and Eastern Europe (CEE), assuming responsibility for the company’s activities across the region.

In his new role, Steven Davis will oversee Peakside’s investment and development platforms across CEE, including Poland and other key regional markets, while working closely with local management teams to drive further growth and operational excellence.

Steven Davis is an experienced property developer with broad market expertise spanning acquisitions, financing, planning, construction, sales, marketing and leasing. Over the course of his career, he has delivered more than 20,000 residential units, developed in excess of 400,000 sqm of commercial office space and 100,000 sqm of retail space, as well as projects within the logistics and industrial real estate sector.

His professional experience covers all major sectors of commercial real estate, including residential, office, retail, hotel and industrial assets. Steven Davis has delivered projects both through ground-up development and via the acquisition of portfolios or individual assets.

He previously served as Chief Operating Officer of a publicly listed company with approximately EUR 2.5 billion of assets under management, and also worked alongside leading institutional partners including Goldman Sachs, GE, Pirelli Real Estate and Grove Investment Fund. Throughout his career in Central and Eastern Europe, he has built and expanded development platforms across multiple markets, including Poland, the Czech Republic, Slovakia, Hungary, Germany, Croatia and Serbia.

Steven Davis is recognised as an experienced leader with a strong ability to build effective teams, foster collaboration and support long-term value creation through clear direction and operational discipline.

“Steven brings a unique combination of international development experience and deep operational expertise across all commercial real estate sectors, including logistics and industrial assets. His leadership approach and regional perspective will strongly support Peakside as we continue to grow our platforms across Central and Eastern Europe in line with our long-term strategy” – said Stefan Aumann, Founding Partner at Peakside Capital.

Steven Davis succeeds Roman Skowronski, who has led Peakside Poland’s operations since 2019.

Stuttgart logistics real estate market stabilises as signs of recovery emerge

The logistics and industrial property market in the Stuttgart region recorded total take-up of 113,700 sq m in 2025. According to REALOGIS Immobilien Deutschland GmbH, the decline seen in recent years continued but at a slower pace. Compared with 125,200 sq m in 2024, take-up fell by 11,500 sq m, or 9%.

While 2022 marked the strongest year on record since 2011 with 316,000 sq m, 2025 was the weakest overall. The five-year average was undercut by 47%. The three largest transactions, concluded by LIDL, Klauss GmbH and a logistics service provider, accounted for a combined 21,000 sq m, representing 18% of total take-up.

Joel Adam, Managing Director of Realogis Immobilien Stuttgart GmbH, said: “Against the backdrop of the overall economic environment and structural challenges, particularly in the automotive industry, demand for space remains selective. At the same time, the Stuttgart region benefits from strong industrial expertise, advanced technological know-how, and well-established innovation structures. These factors provide a stabilising effect and lay the foundation for a moderate recovery in take-up over the course of 2026.”

Rents stabilise after years of growth

Prime rent remained unchanged at €8.50 per sq m, ending an upward trend that had continued since 2020. Average rent was also stable at €7.00 per sq m. Both figures remain above their respective five-year averages by 6% and 7%. The gap between prime and average rents has held steady at €1.50 per sq m for the past five reporting periods. Despite ongoing shortages of modern space in sought-after locations and rising construction and financing costs, weaker demand limited further rental growth.

Existing stock dominates activity

Existing properties accounted for 98,200 sq m, or 87% of total take-up. New-build lettings amounted to 15,500 sq m, representing 13% of the market. Of this volume, 12,900 sq m, or 83%, was delivered on brownfield sites. A transaction by LIDL in the Esslingen district represented around 9,000 sq m, or approximately 70% of total brownfield take-up. Greenfield developments remained marginal, contributing just 2,600 sq m, or 17%, of new-build lettings.

Esslingen leads submarket rankings

With 44,300 sq m, equivalent to 39% of total take-up, Esslingen emerged as the strongest submarket, overtaking Ludwigsburg. Böblingen ranked second with 23,500 sq m, recording the largest year-on-year increase, up by 17,100 sq m. Take-up there more than tripled. Ludwigsburg fell to third place with 20,600 sq m, as activity declined again due to the absence of large transactions. Göppingen followed with 13,000 sq m, or 11%, while the city of Stuttgart itself accounted for 8,700 sq m, or 8% of total take-up.

Sector performance mixed

Manufacturing remained the largest occupier group with 39,500 sq m, representing 35% of total take-up, although this was 26% lower year-on-year due to the lack of major deals. Retail and wholesale followed with 27,900 sq m, or 24%. Within this segment, traditional retailers dominated, accounting for 82% of retail take-up, compared with 18% for e-commerce. This contrasts with 2023, when e-commerce accounted for 75% of retail take-up, and 2024, when the split was 61% to 39%.

Logistics and distribution ranked third with 23,900 sq m, or 21% of total take-up. It was the only sector to record a significant increase, rising by 546% year-on-year and partially offsetting declines elsewhere.

Smaller units dominate

No transactions were recorded above 10,001 sq m in 2025, marking the second consecutive year without activity in this size category. Units between 1,000 sq m and 3,000 sq m led the market with 45,100 sq m, or 40% of total take-up, up 47% year-on-year. The 3,001 sq m to 5,000 sq m segment followed with 34,000 sq m, or 30%. Overall, units of up to 5,000 sq m accounted for 86% of total take-up, compared with 56% a year earlier.

Key figures

Total take-up reached 113,700 sq m. Prime rent stood at €8.50 per sq m and average rent at €7.00 per sq m. Existing space accounted for 98,200 sq m, while new-builds totalled 15,500 sq m. Tenants represented 104,700 sq m of take-up, with owner-occupiers accounting for the remaining 9,000 sq m.

Théa Polska becomes a new tenant of LIXA C

Laboratoires Théa has leased new office space at the LIXA C office building in Warsaw. The company’s Polish subsidiary, Théa Polska, has taken nearly 1,000 sq m on the first floor of the building, which is owned by Yareal Polska. With this transaction, LIXA C has reached full occupancy.

Théa is an independent, family-owned pharmaceutical company specialising in the research, development and commercialisation of ophthalmic products. Founded in 1994 by Henri Chibret, a member of the fourth generation of the Chibret ophthalmology family, the group has developed a portfolio of preservative-free products across multiple therapeutic areas. Théa operates through subsidiaries and distributors in more than 70 countries. In Poland, its products have been present on the market for around 20 years and are widely used by ophthalmologists, pharmacists and patients.

“This year, Théa Polska is celebrating its 20th anniversary,” said Wojciech Tracz, Country Manager at Théa Polska. “It is a unique and important moment in the history of our Polish operations – closing one chapter while opening up space for new challenges and further growth. Our new office symbolizes the journey we have taken and how much we have achieved. Through all these years, Théa has remained true to its mission ‘to be a partner to every ophthalmologist and pharmacist in their daily practice,’ while serving patients every day. We do so by maintaining a consistent organizational culture and operating in the spirit of corporate social responsibility. We are therefore particularly pleased that our new headquarters are located in a building owned by Yareal Polska, a company guided by the principles of CSR and sustainable development, and that the office itself meets high standards in this respect. I am very pleased that Yareal will accompany Théa Polska in the next stages of its development and in strengthening its market position.”

The new headquarters of Théa Polska at LIXA C comprises close to 1,000 sq m of office space. During the negotiation and conclusion of the long-term lease agreement, the tenant was advised by Brochocki Law Firm, represented by Paweł Pamięta and Rafał Buda.

Paulina Petynka, Leasing Director at Yareal Polska, commented: “We are very pleased that another company whose innovative solutions contribute to the development of such a vital area of life as medicine, and thus tangibly improve the lives of many people worldwide, has joined the group of LIXA tenants. When developing our office campus, our goal was to create a functional and friendly working environment that fosters creativity and growth, while offering numerous amenities essential for running a modern business. We are satisfied that we have achieved these objectives, as evidenced by the trust shown by our tenants and the full commercialization of office space at LIXA C.”

LIXA C is part of the LIXA office campus located near Rondo Daszyńskiego in Warsaw. The building was completed in early 2022 and delivers approximately 19,400 sq m of modern office space. It is located on the eastern side of the publicly accessible LIXA City Gardens passage, which connects the entire campus.

The LIXA campus was developed in stages and consists of five office buildings with a total area of 77,000 sq m, designed by HRA Architekci. The project includes more than 5,500 sq m of green areas, including courtyards and terraces, and is designed as an open campus accessible to office users and the wider public. The buildings incorporate a range of technological and environmental solutions and hold several international certifications, including BREEAM Excellent, WiredScore Platinum, WELL Health-Safety, ActiveScore and AirRated.

Hahn Group and Sonae Sierra launch Southern European food retail fund

Sonae Sierra and the Hahn Group have launched the Hahn Sierra Food Retail Fund as part of a cooperation agreement. The open-ended special AIF, established in accordance with the German Investment Code (KAGB), has a target investment volume of around €600 million and focuses on food retail assets in Southern Europe, specifically in Portugal, Spain and Italy. At the first closing, six institutional investors subscribed equity of approximately €150 million. The target equity volume is around €300 million.

The fund focuses on supermarkets, consumer markets and hypermarkets with long-term leases to leading food retailers. It provides German professional investors with access to high-quality, strategically located assets outside Germany. The partnership between the Hahn Group and Sonae Sierra combines the expertise of both companies. Sonae Sierra contributes decades of experience in Southern European markets and a proven track record in value creation within the real estate sector. The company currently manages 24 investment vehicles in partnership with blue-chip investors. The Hahn Group brings extensive experience in the investment and management of food-anchored assets, supported by long-standing relationships with institutional investors. This joint framework enhances the ability to identify suitable investment opportunities and to build a resilient and sustainable portfolio.

€130 million initial portfolio in preparation

Approximately 20 food retail assets in Spain and Portugal, with a total investment volume of around €130 million, are currently at an advanced stage of due diligence. The first acquisitions are planned for the first quarter of 2026. The objective is to reach a total investment volume of €300 million by the end of 2026.

“With the launch of the fund in partnership with the Hahn Group, we are consistently pursuing our expansion strategy in investment management. We bring 35 years of international experience in cooperation with institutional investors, as well as in-depth market knowledge of Southern Europe. The high resilience of the food retail sector—characterised by long-term leases, stable cash flows and high purchase frequency—forms the basis for a sustainable income portfolio. Together with our partner Hahn, we are pleased to offer investors such an attractive and distinctive investment opportunity,” said Dr Christoph Billwiller, Head of Investment Management at Sonae Sierra in Germany and member of the Executive Board.

7 per cent target return for professional investors

The open-ended special real estate fund is aimed at German professional investors. Classified in the Core/Core-Plus risk category, the fund targets an annual return of more than 7 per cent (IRR). Following the first closing, the Hahn Sierra Food Retail Fund remains open for further subscriptions. With a minimum investment of €30 million, the special AIF is aimed primarily at insurance companies, pension funds, pension schemes and church institutions.

Thomas Kuhlmann, CEO of the Hahn Group, said: “Our investors have been successfully investing in the German food retail sector for over 40 years. These investments traditionally offer high resilience and an excellent risk-return profile. We are pleased to now offer investments in the European food retail sector for the first time, enabling our institutional investors to achieve broader geographical diversification. Spain, Portugal and Italy are highly attractive markets with above-average growth rates in Europe. In Sonae Sierra, we have selected a cooperation partner with extensive industry expertise and in-depth regional market knowledge. Combined with our capital markets expertise, this provides a strong foundation for the fund’s success.”

Photo: Thomas Kuhlmann, CEO of the Hahn Group

Deka Immobilien sells five-star hotel in Mallorca

Deka Immobilien has completed the sale of the Jumeirah Port Sóller Hotel & Spa on the Spanish island of Mallorca. The buyer is Dubai Holding LLC, which acquired the property from the portfolio of the WestInvest InterSelect. The parties did not disclose the purchase price.

Located on the island’s northwest coast, the asset comprises a hotel with 121 rooms, including 15 suites, as well as 58 parking spaces. The transaction also includes an adjacent undeveloped plot that may be designated for local recreation and nature conservation, or used to a limited extent for agricultural purposes. Deka Immobilien acquired the property in 2007. It is fully leased on a long-term basis to Jumeirah Port Soller Mallorca, S.L.. The hotel holds Leadership in Energy and Environmental Design (LEED) Platinum certification.

According to Deka Immobilien, the disposal reflects active portfolio management and takes advantage of continued investor demand for hotel assets in Mallorca. The transaction is expected to contribute positively to the performance of the WestInvest InterSelect fund.

Czech producer prices fall for industrial output in December 2025

Producer price data released by the Czech Statistical Office show mixed trends in December 2025 across different sectors of the Czech economy.

Industrial producer prices, which reflect changes in the prices of goods sold by manufacturers, decreased both compared with a year earlier and month on month in December. The index for industrial output was down on the year, continuing a period of price declines in this segment. Agricultural producer prices also fell in December, showing lower average levels compared with both the preceding month and the same period in 2024.

In contrast, prices in other parts of the economy rose on an annual basis. Market services provided to businesses recorded higher producer price levels than a year earlier, as did construction work. These sectors saw moderate increases in producer prices in comparison with December 2024.

Over the full year 2025, the patterns in producer price changes diverged across sectors. Industrial producer prices declined on average compared with 2024, while prices for agricultural producers, construction work and business services were higher over the same period.

The data suggest that while cost pressures in manufacturing eased towards the end of 2025, price developments in services and construction continued to reflect upward trends. Changes in producer prices can influence inflationary dynamics and business cost structures, and this mixed performance across sectors points to varying cost pressures in the Czech economy heading into 2026.

PAMERA Real Estate Group increases assets under management to over €2 billion

The real estate family and investment office PAMERA Real Estate Group reported positive results for the 2025 financial year. Despite a still-challenging market environment, the company continued to pursue a countercyclical investment strategy, acquiring properties in Germany and the United States with a total transaction volume of more than €300 million.

Growth was supported not only by acquisitions but also by new asset management mandates. Over the course of the year, assets under management increased to nearly 100 properties, comprising around 440,000 sq m of rental space, with a total value exceeding €2 billion.

Expansion in the US remained a key contributor. Since the establishment of PAMERA North America LLC in 2024, the group has acquired properties with a combined value of more than USD 440 million in the metropolitan areas of New York, Raleigh and Denver. All assets are managed locally by PAMERA’s team based in New York City.

Looking ahead to 2026, PAMERA plans to continue using the current market conditions for selective, countercyclical investments, with a continued focus on North America alongside opportunities in Germany. Managing partners Christoph Zapp and Karl Groß von Trockau said that recent market volatility continues to present entry opportunities for well-capitalised investors with strong local expertise, supporting further acquisitions and organic growth.

The company also plans to open an additional German office in Leipzig in March 2026. This will become PAMERA’s fourth location in Germany, alongside Frankfurt and Berlin, complementing its existing presence in Munich and New York City.

PAMERA stated that its combination of investment and asset management capabilities, together with its local operating structure, positions the group to continue managing and developing its portfolio in line with long-term investor objectives.

Poland at a Security Crossroads: The Greenland Dispute

Amid the growing dispute over the future of Greenland, Polish authorities are calling for caution and calm. Poland has officially stated that it has no plans to deploy troops to Greenland, despite several NATO countries deciding to send small contingents as part of the Arctic Endurance exercise. The eight participating countries issued a joint statement emphasizing their support for Denmark’s sovereignty and Greenland’s territorial integrity, as well as their opposition to the threat of tariffs that could harm transatlantic relations.

Prime Minister Donald Tusk assured that Poland has no intention of committing troops to the Arctic, arguing that this is neither the time nor the place to analyse the consequences of a potential American military intervention. He stated that the dispute between Denmark and the United States should remain diplomatic and not escalate into military action that could challenge NATO principles. Tusk also stressed the importance of European solidarity, while adding that Poland sees no need for any “emotional reaction” to the situation surrounding Greenland. He reaffirmed the role of NATO and cooperation with the United States as the foundations of Poland’s security.

At the request of the Ministry of Foreign Affairs, the Polish ambassador to Denmark travelled to Greenland to assess the situation and better understand tensions on the ground. Foreign Minister Sikorski emphasised that Poland should advocate for a world governed by clear international norms and the right of smaller states to determine their own futures, a stance shaped by Poland’s own historical experience.

President Karol Nawrocki also addressed the growing crisis in Greenland, highlighting both the region’s geopolitical importance and the need to resolve the dispute through diplomacy and partnership. In media statements and during his visit to London, he underlined that Greenland’s status should be resolved through dialogue between the United States and Denmark, in order to avoid escalation that could threaten NATO cohesion and international security. He also pointed to the island’s strategic value in the context of great-power rivalry, particularly competition with Russia and China, and emphasised that responsibility for the security of the free world rests primarily with NATO, with the United States as a key ally.

Reactions from experts and commentators were mixed, and often more decisive and heated than those of politicians. Some criticised the government’s decision not to engage militarily in Greenland, arguing that Poland’s absence from European initiatives could weaken its position within the alliance and in Europe more broadly. Others countered that any Polish involvement in operations around Greenland could provoke a negative reaction from the United States, which is widely regarded as the primary guarantor of Poland’s security, particularly in relation to Russia.

The dispute over Greenland signals changing global security realities. The Arctic is becoming a zone of intensified strategic competition, and recent developments highlight a fundamental reality: the United States remains the only Western power capable of effective global power projection. Whether one agrees or not, American military strength continues to underpin Western security. At the same time, the United States is gradually losing its greatest asset—the alliance system. For decades, networks of political, military, and economic partnerships have been the primary instruments of American influence worldwide. While the United States cannot fight on behalf of everyone, it also cannot afford to confront everyone at once.

The situation surrounding Greenland also exposes Europe’s weakness. For years, European countries have neglected their own defence capabilities, replacing them with declarations and symbolic politics. The lack of real military capacity across much of Europe is no longer merely a political issue; it has become a security problem.

For Poland, this represents a crucial lesson. In the new strategic environment, alliances are necessary but insufficient. Security must be grounded in national capabilities: a strong defence industry, resilient logistics, operational readiness, and credible deterrence. The era of strategic comfort that Europe has grown accustomed to over recent decades is coming to an end.

Source: Warsaw Enterprise Institute (WEI)

Variable flats offer greater flexibility for future home changes

Rising renovation costs are causing many households in Poland to delay planned upgrades. According to recent estimates, nearly 85% of Poles postpone renovation works, with kitchens proving particularly difficult and expensive to modify due to fixed installations and technical constraints. As a result, attention is increasingly turning to housing concepts that allow greater flexibility over time, including so-called variable flats, which are designed to accommodate future layout changes.

Home renovations are typically considered every decade, most often focusing on kitchens and bathrooms, which are more exposed to wear and moisture. While homeowners often begin with ready-made design ideas, these plans frequently prove costly or technically unfeasible once existing installations are taken into account. Kitchens are especially restrictive. Research conducted by Chalmers University of Technology in 2022 found that in nearly 70% of the analysed apartments, relocating the cooking area was not realistically possible, largely due to limited access to installation risers and difficulties in modifying connections.

At the same time, the way apartments are used tends to evolve. Spaces originally intended primarily for leisure increasingly need to accommodate home offices, study areas or small business activities. This shift often creates demand for clearer separation between working and living zones. The ability to relocate a kitchen or adjust whether it is open to or separated from the living room can make such reorganisation significantly easier.

One response to these challenges is the introduction of variable flats, developed by Develia, which are designed with additional installation solutions from the outset. The concept is intended to reduce future technical barriers and allow apartments to be adapted more easily as residents’ needs change.

“Variant flats were created in response to the needs of customers who want to more easily adapt their flats to changing expectations for modern and functional space. Anticipating the most common solutions, we have supplemented the apartment layouts with the necessary installations and adapted the existing ones so that changes are easier to implement – both at the construction stage and many years later, when the need arises,” said Wojciech Sosnowski, Design Manager at Develia.

One of the most common layout decisions concerns whether the kitchen should be open or closed. In standard apartments, this choice is often irreversible or requires costly reconstruction. In variable flats, alternative layouts can be implemented already at the stage of tenant modifications, including relocating the kitchen or changing its relationship with the living area. Importantly, these changes can also be made years later without extensive interference in the building’s infrastructure.

This flexibility is made possible by incorporating additional risers at the design stage, removing the key obstacle that prevents kitchen relocation in most conventional apartments. It also eliminates the need to create new installation routes, which can be expensive and often requires approval from the building community.

Variable flats are also intended to adapt to changing market trends and life circumstances, such as the need to create a home office or an additional bedroom for a growing family. From the outset, residents have clarity on which elements of the layout can be altered and how, providing greater certainty about how the apartment can evolve over time.

The concept offers multiple layout options within a single apartment footprint, rather than requiring buyers to choose between different floor plans. Design considerations extend beyond installations to features such as window placement, which must support both natural lighting and potential future reconfigurations.

From an investment perspective, variable flats allow for a balance between standardised solutions and the ability to tailor units to different tenant or buyer needs. More broadly, the model reflects a shift toward designing residential space with long-term adaptability in mind, offering an alternative approach at a time when renovation costs and functional requirements are both increasing.

Source: Develia

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