All posts by fletcher@cijeurope.com.

MLP Group Credit Ratings Affirmed by Moody’s and Fitch

Moody’s Investors Service and Fitch Ratings have reaffirmed MLP Group’s credit ratings, keeping them at Ba2 and BB+ respectively, both with a stable outlook. The periodic reviews confirm the company’s standing at the same levels as in previous assessments.

The agencies’ decisions come against the backdrop of a challenging macroeconomic environment. Moody’s noted the quality of MLP Group’s logistics portfolio, which includes large distribution centers and urban parks in Poland and Germany. It also highlighted the concentration of assets near major transport routes and urban centers, as well as a tenant base made up of international firms with diversified operations. According to Moody’s, the company benefits from long lease terms averaging more than seven years, high occupancy, and steady rent growth, all of which contribute to predictable income.

Fitch emphasized the development of the company’s Polish portfolio of Class A properties, its internal management model, and its spread across attractive locations. The agency pointed to the value of diversification by both asset type and tenant industry, along with low vacancy rates and long lease agreements, as factors supporting resilience against market volatility.

MLP Group’s management described the confirmation of ratings as recognition of its long-term strategy. Radosław T. Krochta, President of the Management Board, said the reaffirmation reflects the company’s financial stability and supports expansion plans across Europe. CFO Maciej Müldner added that maintaining ratings provides access to capital markets on favorable terms.

The ratings place MLP Group just below investment grade, a position that reflects both the company’s strengths in logistics development and the inherent risks associated with its growth model. The stable outlooks from Moody’s and Fitch suggest that, barring a major shift in market conditions or company performance, the ratings are not expected to change in the near term.

Male Financial Habits in Poland: Balancing Stability and Debt

New survey and registry data from BIG InfoMonitor and BIK provide a nuanced picture of men’s financial behavior in Poland, showing that most manage day-to-day expenses without tapping into savings, even as a significant share of overdue household debt remains concentrated among men.

According to a survey commissioned by BIG InfoMonitor, 72 percent of male respondents said they do not need to use their financial reserves to meet regular expenses. Only 28 percent reported drawing on savings, suggesting that most men manage their household budgets from current income. When savings are used, they are typically spent on necessities: groceries (34 percent), utility bills (32 percent), medical services (31 percent), and medicines (26 percent). Less frequently, savings are directed to discretionary spending such as hobbies (14 percent), entertainment (13 percent), or pets (9 percent).

BIG InfoMonitor’s analysts note that men appear less likely than women to dip into savings for daily needs, though comparative figures for women were not disclosed in the current release. “Statistically, men in Poland still more often occupy higher-paid positions and earn more in the same roles, which may translate into greater liquidity and less frequent use of reserves,” said Dr. Waldemar Rogowski, chief analyst at BIG InfoMonitor, citing national pay gap data from Statistics Poland (GUS) and Eurostat.

The data also highlight debt pressures. As of the end of July, more than 1.5 million men in Poland had overdue liabilities totaling nearly PLN 60 billion, representing around 70 percent of the country’s total arrears held by individuals. While the number of male debtors has fallen by over 110,000 in the past three years, the value of outstanding debt has risen by nearly PLN 3 billion. On average, male debtors now carry around PLN 38,000 each, up over PLN 4,000 compared with July 2023.

Experts caution that this indicates a concentration of financial stress among a smaller group of men with higher arrears. “Gentlemen are balancing between common sense and risk,” said Paweł Szarkowski, president of BIG InfoMonitor. “The number of men with overdue payments has gone down, but the scale of obligations among those who remain in debt is increasing.”

BIG InfoMonitor’s survey also found that roughly one in five men report using savings to repay loans or other liabilities. Analysts suggest this may reflect a more cautious approach to debt management, with men turning to personal reserves rather than taking on new borrowing.

Taken together, the findings underline a mixed picture. Many men appear able to cover everyday costs from income and maintain liquidity, but a significant share continues to struggle with arrears, highlighting the ongoing tension between financial prudence and exposure to risk.

Source: BIG InfoMonitor and BIK

Union Investment Sells Texas Capital Center in Dallas Amid Mixed Office Market

Union Investment has sold the Texas Capital Center office tower in Dallas to a U.S. real estate investor, marking an exit from a property it had owned since 2016 through its UniImmo: Global fund.

The 21-story building, located on McKinney Avenue in Dallas’ Uptown district, offers more than 42,000 square meters of leasable space and parking for over 1,300 vehicles. Completed in 2008, the tower is primarily used for offices with a small share of retail. Its anchor tenant, Texas Capital Bank, occupies a significant portion of the building under a long-term lease extended in 2022 until 2040. At the time of sale, about 20 percent of the space was vacant.

Union Investment did not disclose the sale price. The company said the transaction reflects continued investor interest in Dallas, which remains one of the largest office markets in the United States. The sale also aligns with its strategy of reducing exposure to U.S. offices while broadening global portfolio diversification.

The deal comes at a time when Dallas’ office sector is facing pressure. According to Partners Real Estate, the metro’s office vacancy rate reached 25.3 percent in the second quarter of 2025, with negative net absorption of roughly 285,000 square feet. Leasing activity slowed, totaling about 3.7 million square feet for the quarter. By contrast, Class A properties performed somewhat better, with CBRE noting modest positive absorption and resilient rents, reflecting the ongoing “flight to quality” trend as tenants gravitate toward newer, amenity-rich buildings.

Union Investment was advised on the Texas Capital Center transaction by JLL, Metzler, and Mayer Brown.

Polish Non-Bank Loan Market Expands in August with Growth Across All Segments

Poland’s non-bank lending sector recorded strong gains in August, with both short-term and longer-term cash loans, as well as installment loans, rising in number and value compared with the same month last year.

According to data from the Credit Information Bureau (BIK), the largest increases were seen in short-term cash loans, which are typically repaid within two months. These reached a value of just over PLN 1.15 billion in August, nearly 21 percent higher than a year earlier. Around 464,000 such loans were issued during the month, up by more than 7 percent year-on-year. The average loan size also increased, climbing to about PLN 2,700.

Loans with maturities longer than two months also advanced, with more than 74,000 granted in August, worth roughly PLN 441 million. Both the number and value of these loans grew compared with last year, while the average size rose to just over PLN 6,000.

The installment loan segment also showed strong momentum, with almost 873,000 loans granted during the month. Their total value came to PLN 582 million, reflecting a rise of more than 15 percent. However, the average installment loan size dropped by nearly 10 percent, to about PLN 670, suggesting that many borrowers are opting for smaller amounts even as overall demand rises.

Cumulative figures for the first eight months of the year highlight the strength of the sector. More than 3.6 million short-term cash loans were issued between January and August, up nearly 15 percent on the year, with the value growing by close to 29 percent. Longer-term cash loans and installment loans also recorded double-digit growth in both number and value.

Analysts note that while the market is expanding, the fall in average installment loan amounts and reports of high rejection rates across the industry suggest lenders are exercising caution. For now, though, the data confirms that Poland’s non-bank loan sector continues to grow rapidly, driven by both household financing needs and wider consumer spending trends.

Polish Non-Bank Loan Market Expands in August with Growth Across All Segments

Poland’s non-bank lending sector recorded strong gains in August, with both short-term and longer-term cash loans, as well as installment loans, rising in number and value compared with the same month last year.

According to data from the Credit Information Bureau (BIK), the largest increases were seen in short-term cash loans, which are typically repaid within two months. These reached a value of just over PLN 1.15 billion in August, nearly 21 percent higher than a year earlier. Around 464,000 such loans were issued during the month, up by more than 7 percent year-on-year. The average loan size also increased, climbing to about PLN 2,700.

Loans with maturities longer than two months also advanced, with more than 74,000 granted in August, worth roughly PLN 441 million. Both the number and value of these loans grew compared with last year, while the average size rose to just over PLN 6,000.

The installment loan segment also showed strong momentum, with almost 873,000 loans granted during the month. Their total value came to PLN 582 million, reflecting a rise of more than 15 percent. However, the average installment loan size dropped by nearly 10 percent, to about PLN 670, suggesting that many borrowers are opting for smaller amounts even as overall demand rises.

Cumulative figures for the first eight months of the year highlight the strength of the sector. More than 3.6 million short-term cash loans were issued between January and August, up nearly 15 percent on the year, with the value growing by close to 29 percent. Longer-term cash loans and installment loans also recorded double-digit growth in both number and value.

Analysts note that while the market is expanding, the fall in average installment loan amounts and reports of high rejection rates across the industry suggest lenders are exercising caution. For now, though, the data confirms that Poland’s non-bank loan sector continues to grow rapidly, driven by both household financing needs and wider consumer spending trends.

WING Expands Sustainable Hospitality Portfolio with ibis & TRIBE Hotels in Budapest

Hungarian developer WING has strengthened its hotel portfolio with two new projects under Accor’s TRIBE brand: the ibis & TRIBE Budapest Stadium Hotel near Népliget and the TRIBE Budapest Airport Hotel. Both properties have been designed with sustainability and accessibility in mind, and are positioned as part of a new wave of lifestyle hotels in Central Europe.

The dual-branded ibis & TRIBE Budapest Stadium, offering 332 rooms across three- and four-star categories, combines the design focus of TRIBE with the wider reach of ibis. Located within the Liberty mixed-use complex, the project has been highlighted by WING as a showcase for environmentally responsible design. The developer has stated that the hotel is targeting high-level green certification under the BREEAM framework, though independent confirmation of certification status has not yet been published.

The TRIBE Budapest Airport Hotel, connected to Liszt Ferenc International Airport, brings 167 additional rooms to the capital’s hospitality market. WING has said the hotel incorporates accessibility standards and inclusive design principles, and industry press reports note that the property aims for BREEAM certification as well.

TRIBE, a relatively new brand within the Accor portfolio, positions itself at the intersection of lifestyle and sustainability, with emphasis on communal spaces, contemporary design and resource-efficient operations. Its arrival in Budapest is part of a broader trend among international operators to expand sustainable hospitality offerings in the region.

WING has been one of Hungary’s most active developers in the hotel sector over the past decade, delivering more than 1,000 rooms across multiple projects. The company says sustainability has become a guiding principle in all new developments, both in terms of energy performance and the reuse of existing structures.

While claims of top-tier BREEAM ratings for the Stadium hotel have circulated, neither BREEAM’s certification database nor independent industry sources have yet confirmed an “Outstanding” ranking. For now, the projects represent significant progress in aligning Budapest’s hospitality sector with European environmental standards, while underscoring WING’s role in introducing new international hotel concepts to Hungary.

Slovakia: Industry and Services Struggle, Households Improve

Slovakia’s overall economic confidence slipped in September, with factories and service firms turning more cautious, even as consumers, builders, and retailers expressed slightly greater optimism.

The composite measure of sentiment dropped compared with August and remained well below its long-term average, underscoring an uneven backdrop for growth. Year on year, the index is nearly five points lower.

The sharpest deterioration came from industry. Manufacturers reported lower expectations for output in the coming months and a build-up of unsold goods. Weakness was most visible in textiles, food production, and pharmaceuticals, while makers of refined fuels and transport equipment also forecast cutbacks. Some relief came from exporters in food and electrical equipment, who noted a small improvement in foreign orders, but this was not enough to offset the broader decline.

Service companies also scaled back their outlook. Real estate activities in particular weighed on the sector, while transport and storage firms said they expect to reduce staff in the coming quarter. Businesses in finance and insurance reported stronger demand, but this was not enough to keep the sector’s overall reading in positive territory.

By contrast, construction firms saw an improved flow of orders, especially in building works, and reported plans to take on staff. Labour shortages and higher costs remain obstacles, but more firms described their order books as sufficient. Retailers also voiced greater optimism, pointing to expectations of higher sales and employment, particularly in household goods and information technology equipment.

Household sentiment strengthened modestly after several months of declines. People were less worried about job prospects and financial pressures, and more confident about their ability to save. All four components of the household survey improved in September, although the overall mood remains far more negative than a year ago.

The downturn in Slovak business sentiment mirrors a broader cooling trend across Europe. The European Commission’s September survey showed the euro area’s overall sentiment index falling slightly, as manufacturing remained subdued and services confidence softened. Consumer mood in the EU improved somewhat, though it also stayed well below historical averages. Compared with neighbours, Slovakia’s index is weaker than that of Czechia, where confidence has been steadier, but broadly in line with Hungary and Poland, where industry has also been under strain. The divergence between still-cautious businesses and slowly recovering households appears to be a common pattern across Central Europe.

Taken together, the results highlight a split in the Slovak economy. Industry and services, which account for a large share of output, are showing signs of strain from weaker demand and rising inventories. On the other hand, households, retailers, and builders are cautiously more optimistic, hinting at pockets of resilience. The question for the months ahead is whether the gains in construction, trade, and household confidence can balance out the drag from factories and services. For now, Slovakia’s sentiment index suggests that growth momentum remains fragile heading into the final quarter of 2025.

Source: SOSR

Poland’s Jobless Rate Edges Higher as Fewer Vacancies Emerge

Unemployment in Poland has inched upward through the summer, with labour market data pointing to both a slowdown in hiring and changes in how jobseekers are registered.

Official figures show that the number of people listed as unemployed has been rising since the spring. The rate stood at about 5.4 percent in July and climbed to 5.5 percent in August. That translates into more than 800,000 people out of work, up by over 65,000 compared with a year earlier.

Part of the increase reflects a weaker flow of new job offers. Statistics from public employment offices show that the number of vacancies has been shrinking steadily, falling by around 15 percent in August from the previous year and dropping to about half the levels seen earlier. Separate surveys of online job ads also point to a decline, marking the lowest volume since the beginning of 2025.

Another factor is institutional. A law introduced in June broadened access to unemployment registers, allowing farmers to sign up, enabling people to register in their home district, and curbing automatic removals from the rolls. Officials have acknowledged that these changes are raising the headline figures, even if the number of people without work has not risen as sharply in practice.

At the same time, more workers are entering the register after being laid off by employers, with four consecutive months of increases. While the absolute number is still modest, the pace of growth — about five percent month on month in recent weeks — suggests that companies are trimming staff in response to softer demand.

Business surveys hint at a mixed picture. More managers are reporting stability in employment expectations, though job cuts still outweigh plans to expand headcount. Industrial firms remain relatively optimistic about their overall outlook, even as service providers show more caution.

Taken together, the data suggest that Poland’s labour market is under gentle but sustained pressure. Whether this reflects a temporary adjustment or the beginning of a more pronounced cooling will depend on how hiring intentions develop in the months ahead.

Source: BIEC

Poland’s Retail Parks Strengthen Position as Leasing Models Adjust

Retail parks have emerged as the most resilient segment of Poland’s retail property market in 2025, with new projects, steady investment activity and a changing approach to lease agreements reshaping the sector.

Industry data indicate that more than 170,000 square metres of new retail space was delivered in the first half of the year, with forecasts suggesting that total completions could reach close to 400,000 square metres by December. Developers are also pressing ahead with projects that will add another half a million square metres in 2026, signalling the strongest construction pipeline the sector has seen to date.

The surge in supply has not discouraged investors. Mid-year reviews by international brokerages highlight that retail parks continue to draw capital, with yields holding in the range of seven to seven and a half percent, and prime assets in established catchments trading slightly below that. Analysts point to consistently strong tenant demand and stable occupancy as reasons for this steady pricing.

Market commentators describe retail parks as one of the most active property formats in Poland, with many investors viewing them as defensive assets in uncertain economic conditions. Reports also highlight that landlords and tenants are increasingly negotiating around how service charges and maintenance costs are handled.

A study prepared jointly by Avison Young, CMS, BIG Poland and the Polish Council of Shopping Centres notes that while the principle of tenants covering property operating costs remains intact, agreements are more frequently being adapted to include safeguards such as cost ceilings, inflation-linked fees or fixed monthly contributions. Legal experts argue that these changes, once confined to large shopping centres or key tenants, are now becoming more common across the retail park sector.

Brokers confirm that retailers are seeking greater predictability in their occupancy costs and that landlords are responding with more flexible arrangements. This reflects a broader shift in bargaining power and the growing maturity of the market.

The overall picture shows a sector that continues to expand, both in scale and sophistication. Strong construction pipelines, a healthy investment market and evolving lease practices suggest that retail parks are set to remain a cornerstone of Poland’s retail landscape in the coming years.

Allegro to Relocate Prague Office to Karlín

Allegro, the European online marketplace, will relocate its Prague office from Holešovice to Danube House in Karlín, part of the Riverside Karlín complex currently under renovation. The move follows a search process carried out with real estate consultancy Colliers.

The company has leased 2,850 square metres of space across two floors at Karolinská 650/1. The building, which holds a LEED Platinum sustainability certification, was chosen for its location, design standards, and environmental performance. Allegro expects the new office to better align with its corporate values and environmental goals.

The fit-out, set to begin in early 2026, will incorporate employee feedback and consultations with team leaders. Plans include a kitchen with a terrace overlooking the Vltava River, a dedicated visitor zone with meeting space, and areas for corporate events. Smaller features such as telephone booths and relaxation zones are also planned.

Danube House is designed with measures to improve efficiency and comfort, including renewable energy use, smart heat pumps, shading systems, and automated ventilation in meeting rooms. Shared facilities will include a garden and landscaped areas intended for informal meetings.

Allegro intends to complete the relocation in the summer of 2026. The company has described the move as part of its long-term commitment to operations in the Czech market.

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