IREMIS Advises on Acquisition of Steigenberger Hotel am Kanzleramt in Berlin

fletcher@cijeurope.com
19 September 2025
Office

Luxembourg-based real estate investment manager IREMIS has advised a leading U.S. asset manager on the acquisition of the Steigenberger Hotel am Kanzleramt in Berlin, one of the German capital’s flagship hospitality properties.

Situated next to Berlin’s main railway station and in close proximity to the federal government district, the hotel features 339 rooms, large-scale conference facilities, and a wellness area overlooking the Chancellery. Since opening, it has established itself as a prime destination for both international business travellers and tourists.

The acquisition marks a further expansion of IREMIS’s hotel and leisure platform, which focuses on securing and managing high-quality hospitality assets in major European cities. Beyond arranging the financing and facilitating the transaction, the firm will continue to work alongside the operator, Steigenberger Hotels & Resorts, part of Deutsche Hospitality, to strengthen the property’s positioning and support long-term value creation.

Peter Lenhardt, Head of the Hotel and Leisure Division at IREMIS, said:
“We are proud to have been involved in the acquisition of such a prestigious hotel in the heart of Berlin on behalf of a leading U.S. asset manager. This investment reflects our shared conviction in the resilience of the hospitality sector and in Berlin’s strong appeal as a leading European travel and business destination.”

The deal underscores renewed investor confidence in Europe’s hotel market, particularly in core cities such as Berlin, which continues to benefit from robust tourism demand and its role as a major business hub.

Poland’s Real Estate Investment Market in H1 2025: Industrial Leads, Retail Parks Rise

Poland’s commercial real estate (CRE) market recorded investment turnover exceeding €1.5 billion in the first half of 2025, down 11% compared with the same period last year, but supported by the highest number of transactions since 2021. A total of 61 deals were signed, reflecting a particularly active market despite lingering macroeconomic headwinds.

The industrial sector was the standout performer, generating €694 million in investment—nearly 140% more than in H1 2024. Much of this growth was driven by sale-and-leaseback transactions, which have become a key source of liquidity for corporates and an attractive long-term income product for investors. The largest deal was Realty Income’s €253.5 million purchase of two Eko-Okna factories, marking the biggest sale-and-leaseback agreement in Central and Eastern Europe. Other notable deals included the sale of LPP’s distribution centre in Bydgoszcz to Reico Long Lease Fund and Adventum International’s acquisition of four industrial assets in Silesia.

The office market remained more subdued, with total investment reaching €414 million—about half of H1 2024 levels. However, transaction activity was high, with 23 deals recorded. Warsaw accounted for 53% of the volume, led by UNIQA Real Estate’s €69 million acquisition of Wronia 31 in the Wola district. Regional cities also saw strong activity, particularly Kraków and Wrocław, where Scandinavian investors such as NIAM and Stena RE remained active. Yields for prime Warsaw offices held steady at 6.0%.

Retail saw 23 transactions worth €314 million, dominated by retail parks and smaller shopping centres. Czech newcomer MyPark acquired the A-Centrum Portfolio of 10 retail parks for €54 million, while BIG Poland expanded with the acquisition of Power Park Olsztyn. Wrocław also saw renewed investor interest, with Vastint purchasing the Arkady Wrocławskie complex from Develia for €43 million. Prime yields for shopping centres remained stable at 6.5%, while prime retail park yields compressed to 7.2%, reflecting strong investor demand.

In the living sector, activity is gathering momentum after two weak years. Xior Student Housing completed acquisitions in Warsaw and Wrocław worth nearly €70 million, while financing conditions improved following two rate cuts by the National Bank of Poland, which lowered its reference rate to 5.0% by July 2025.

Poland’s broader economy provides a supportive backdrop. GDP growth is forecast at 3.3% for 2025, inflation is expected to ease to 3.6%, and unemployment remains among the lowest in the EU at 2.8%. With financing costs declining and demand for resilient asset classes—particularly industrial and retail parks—continuing, analysts at JLL, Cushman & Wakefield, and Savills all note that Poland retains its yield premium compared with Western Europe, offering attractive entry opportunities for both regional and international investors.

Looking ahead, domestic private investors and regional capital from Central Europe are expected to remain dominant players, though a gradual return of Western institutional capital is anticipated as borrowing costs stabilise and prime assets come to market.

Trump’s UK Visit in review: Investment Pledges, Energy Tensions and Protests Shape a Divisive Week

Donald Trump’s state visit to the UK delivered headline investment pledges but also exposed deep political divisions at home and abroad.

The UK government announced a £150 billion package of U.S. investment, with projects in data centres, life sciences and advanced manufacturing that could support more than 7,000 jobs. Prime Minister Keir Starmer welcomed the figure as proof of Britain’s global appeal, though analysts noted that such packages often include previously planned capital, raising questions over how much is genuinely new.

Energy policy dominated much of the political debate. At Chequers, Trump urged Starmer to abandon Labour’s ban on new North Sea oil and gas licences, calling wind power “a very expensive joke” and urging Britain to “drill.” Starmer pushed back, insisting his government would honour its pledge of no new exploration while pressing ahead with renewables and nuclear power. The clash echoed across Westminster: Conservatives endorsed Trump’s line while the SNP and Greens condemned it, warning of backsliding on climate commitments. Think tanks including the Grantham Institute stressed that more drilling would have little effect on bills but would undermine net-zero targets.

The visit was also marked by Trump’s striking comments on Russia. He told reporters that Vladimir Putin had “really let me down” over Ukraine, admitting he once thought the war would be “one of the easiest to solve.” European diplomats welcomed the tougher tone but warned that Trump’s suggestion of using oil prices as leverage risks oversimplifying Russia’s strategy. NATO analysts said any peace framework must safeguard Ukrainian sovereignty, a point Kyiv has consistently reinforced.

Public reaction reflected the tensions. Thousands protested across London and other cities, criticising Trump’s record and Starmer’s decision to grant him state honours. Polling shows Trump remains deeply unpopular in Britain, adding domestic pressure to Starmer’s balancing act between securing inward investment and maintaining political credibility.

The visit reinforced the symbolism of the “special relationship” but also highlighted its risks. The investment pledges offer economic promise, yet trade gaps remain without a full UK–U.S. deal. Trump’s energy intervention piles pressure on Starmer’s climate stance, and his rebuke of Putin injects uncertainty into Europe’s most pressing security crisis. Whether the trip is remembered for billions delivered or political costs incurred will depend on what survives beyond the pageantry.

In the short term, the government will use the £150 billion pledge to bolster confidence in the UK economy, particularly in technology and infrastructure sectors. Yet scrutiny will intensify over how much of that sum materialises as new capital and jobs. Energy markets are unlikely to shift on Trump’s rhetoric, but the political debate on North Sea oil could sharpen, with industry lobby groups pushing harder against Labour’s licensing ban. Diplomatically, Trump’s comments on Putin will be parsed in Brussels, Kyiv and Washington, with NATO allies watching for any signs of U.S. repositioning. For Starmer, the challenge will be to convert the symbolism into concrete gains while resisting pressure that could weaken his climate credentials or alienate European partners.

Source: comp.

UK property prices slip as higher borrowing costs and rising supply cool the market

UK property prices are showing fresh signs of softening, with new-seller asking prices in September 2025 posting their first annual decline since January 2024, according to Rightmove. Average asking prices rose 0.4% on the month to £370,257 but were 0.1% lower than a year earlier, with London and southern regions dragging the national figure into negative territory. Rightmove also reported sales agreed running 4% above last year, suggesting demand remains active where homes are priced keenly.

Lender indices point to the same loss of momentum. Nationwide said prices slipped 0.1% month-on-month in August, trimming annual growth to 2.1%, while Halifax recorded a 0.3% monthly rise and 2.2% annual growth, emphasizing a largely flat market in real terms.

The official UK House Price Index showed that, on a seasonally adjusted basis, average prices fell 0.7% between June and July. On a non-seasonally adjusted basis, prices edged up 0.3% over the month and 2.8% over the year, underlining how the direction of travel depends on the measure and adjustment used. Regional variation remains pronounced, with stronger growth in Northern Ireland and parts of the North, and weaker readings in the South.

Survey evidence suggests pricing power continues to ebb. The latest RICS Residential Market Survey shows softer demand and new instructions alongside subdued near-term price expectations, a configuration that typically precedes further modest price falls where sellers resist discounting.

Economists point to three factors behind the dip: affordability still stretched after the 2022–23 mortgage shock; a higher volume of listings giving buyers more choice; and policy uncertainty ahead of the November Budget, particularly around possible property-tax changes that could weigh on higher-value southern markets. Rightmove highlighted the South and London as the main drivers of September’s year-on-year decline, while Reuters flagged the combination of softer house prices and easing rent growth as signs of a broader cooling.

The interest-rate backdrop is also pivotal. The Bank of England held Bank Rate at 4.0% on 18 September, signaling caution amid still-elevated inflation. That pause leaves many borrowers rolling off cheaper fixes facing higher repayments, reinforcing buyer sensitivity to price and pushing vendors toward realistic pricing.

Taken together, the latest data describe a market that is not in freefall but is drifting lower in nominal terms in parts of the country—and falling in real terms once inflation is considered. With stock levels up, rate cuts uncertain, and affordability constrained, agents say the homes that sell are those priced to today’s conditions, not last year’s. Expect continued regional divergence and a gentle grind rather than a sharp correction unless financing costs fall materially.

Source: comp.

Germany Confronts Fiscal Reckoning After Years of Overspending, Merz Warns

Germany is heading into a period of painful fiscal adjustment after Chancellor Friedrich Merz acknowledged the country has been “living beyond our means for years.” His comments, delivered at a party conference in North Rhine-Westphalia, signal a shift in tone from Europe’s largest economy as it confronts swelling welfare obligations, municipal debts and a widening national budget gap.

Merz pledged to launch a programme of municipal debt relief starting in January 2026, a move aimed at easing the pressure on cities and towns weighed down by legacy borrowing. North Rhine-Westphalia alone carries more than €55 billion in municipal liabilities. “We cannot continue as we have,” Merz told delegates, stressing that Germany’s welfare state in its current form is no longer financially sustainable.

The Chancellor’s stark language was widely reported, though some coverage has pushed further than his words. While British media ran headlines declaring that Germany “faces ruin,” there is no verified record of Merz using such terminology. Wire services including Reuters quoted him directly on overspending and the need for reform, but not on impending collapse. Economists also caution that while Germany faces serious fiscal strain, its credit standing remains solid and it retains ample room to legislate budgets and borrow responsibly.

The fiscal outlook is nevertheless daunting. According to the Financial Times, Germany faces a budget gap of around €170 billion by 2029, even after making use of special borrowing vehicles for defence and infrastructure. Finance ministry documents released in July confirm the scale of the challenge, warning that pensions and social security costs will keep rising sharply unless structural reforms are implemented.

Berlin has already passed its 2025 budget, which departs from fiscal orthodoxy by expanding public investment through special funds, partly to bolster economic growth and meet NATO defence spending commitments. The move demonstrates capacity to act, but it also highlights the tension between investing in future competitiveness and consolidating public finances.

Merz’s intervention reflects both political and economic pressures. His CDU-led government must steer between voters anxious about welfare security and business leaders demanding stability and competitiveness. Economists are split: some argue Germany must ease its constitutional “debt brake” to enable more investment, while others warn that loosening fiscal rules risks undermining the discipline that has long anchored the country’s economic credibility.

The Chancellor’s warning that Germany has lived beyond its means is an unusually blunt admission from a leader of Europe’s economic powerhouse. But the suggestion that the country is on the brink of ruin is overstated. Germany’s challenge is not imminent collapse but the longer-term sustainability of its social and fiscal model. Demographics, welfare costs and global competition will force difficult choices in the years ahead.

For now, Berlin is signalling that it will tighten the belt where necessary while trying to preserve its ability to invest in the economy of tomorrow. Whether that balance can be struck without undermining growth—or shaking Germany’s political consensus—will be the defining question of Merz’s chancellorship.

CISAF: Europe’s new state-aid rulebook for a cleaner, more competitive industry

The European Commission has adopted a permanent state-aid framework to underpin its Clean Industrial Deal (CID), replacing the crisis-era regime that carried the EU through the energy shock and early cleantech race. The Clean Industrial Deal State Aid Framework, or CISAF, applies from 25 June 2025 to 31 December 2030 and succeeds the Temporary Crisis and Transition Framework (TCTF). Brussels says the change offers a longer planning horizon and clearer pathways for supporting renewables, industrial decarbonisation and net-zero manufacturing while aligning with existing guidelines such as the CEEAG and the General Block Exemption Regulation.

CISAF’s centre of gravity is faster deployment of clean energy and flexibility. It streamlines approval for aid that rolls out renewables and storage—including hydrogen and other low-carbon fuels—and introduces a “target-model” approach to capacity mechanisms so member states can integrate more variable wind and solar without jeopardising security of supply. Designs that meet the model can obtain quicker clearance, while other formats fall back to assessment under the CEEAG.

On the demand side, the framework allows temporary electricity-cost relief for energy-intensive users exposed to global competition, provided beneficiaries invest in decarbonisation. It also opens multiple routes to support emissions cuts at existing plants—electrification, hydrogen, sustainable fuels and carbon capture—through tenders or direct aid with funding caps for very large projects, or via competitive bidding to set maximum aid levels. To anchor supply chains in Europe, CISAF lets governments back new manufacturing capacity for technologies covered by the Net-Zero Industry Act and the production and processing of critical raw materials. In defined cases, “matching aid” can be granted to counter subsidies offered in third countries, and tax measures can accelerate the amortisation of clean-tech investments.

The Commission has already begun applying the framework. In August it cleared an €11 billion French scheme to support three floating offshore wind farms using contracts for difference—one of the first large approvals aligned with the CID’s objectives and an early test of CISAF’s streamlined approach. More national schemes are expected as member states shift TCTF programmes into the new regime.

CISAF is not a blank cheque. Most measures still require prior notification and must run through aid schemes rather than one-off permissions, a constraint that some industry groups say could slow momentum. The Commission argues that predictability—and convergence on capacity-market designs—should cut approval times and reduce fragmentation across the single market. The framework also coexists with the CEEAG and the GBER, which remains available for certain green-aid categories without notification and is being revised to expand simplified options.

Whether CISAF proves to be an efficient catalyst will depend on speed and scale. If member states mobilise competitive tenders for industrial decarbonisation, use matching aid judiciously to keep strategic factories in Europe, and pair renewable build-out with robust flexibility and capacity mechanisms, the framework could give the CID real bite. Early approvals like France’s offshore wind package suggest the pipeline is forming; the next six to twelve months will show whether national budgets and Brussels’ processes can translate the rulebook into projects on the ground.

Source: CMS

Romania drafts emergency ordinance to fast-track biomethane into the gas grid

fletcher@cijeurope.com
18 September 2025
Energy

Romania is preparing a government emergency ordinance (GEO) to create a full legal pathway for producing, trading and injecting biomethane into the national gas system, a step long sought by developers as the country looks to decarbonise heating and cut landfill emissions. A draft published for consultation amends the Electricity and Natural Gas Law No. 123/2012—tightening definitions such as “biogas,” “biomethane,” “injection installation” and “guarantee of origin”—and sets out producer rights and duties broadly aligned with those for natural-gas producers. The proposal clarifies licensing, quality and odourisation requirements, metering and pressure-regulation obligations at the point of entry, and assigns connection and injection-facility costs to producers, while granting access rights to the distribution system subject to ANRE approval of technical and commercial rules.

Industry interest is high because Romania’s gas grid can move “green molecules” with relatively modest adaptations. While transmission lines total roughly 13,400 km and one major distributor alone operates about 26,000 km, recent analyses put the country’s combined gas distribution network at more than 50,000 km—ample reach to absorb early biomethane projects if interconnection standards are finalised.

The GEO lands alongside national targets that elevate biomethane from concept to policy. Romania’s Energy Strategy 2025–2035 sets a 5% biomethane share in gas flows by 2030 and 10% by 2050, with technical potential estimated at about 501 kilotons of oil equivalent from agricultural residues and waste by mid-century. The European Biogas Association and CEE market studies likewise rank Romania among the EU’s top growth candidates—around 2 bcm a year by 2030, rising toward 8 bcm by 2050—if permitting, grid access and offtake rules are streamlined.

Momentum is building at project level. In 2024, Black Sea Oil & Gas and DN Agrar announced plans for what they described as Romania’s first large biomethane plant, designed to inject into existing pipelines—an example of the “waste-to-grid” model the new ordinance aims to replicate at scale. The Ministry of Energy has also flagged the GEO as part of measures to cushion households and industry from the EU’s incoming ETS-2 costs by substituting fossil gas with renewable gas where feasible.

If adopted as drafted, the ordinance would give producers predictable interconnection rules, clarify responsibilities between plant operators and downstream system operators, and codify tariffing and easement procedures—key bottlenecks to date. The policy’s success will hinge on swift secondary regulations from ANRE and workable grid-quality standards, but Romania’s combination of feedstock, storage assets and a far-reaching gas network gives it a credible shot at becoming a regional biomethane leader.

Source CMS

Structural Reform, Trade Risks and India’s Search for Resilient Growth

India enters FY 2025/26 with solid momentum but a more challenging backdrop. Official estimates put real GDP growth for FY 2024/25 at 6.5%, with the March quarter expanding 7.4% year-on-year. That sets a high base for the current year, but also highlights the difficulty of sustaining growth consistently above 7%.

Price pressures have largely eased. Headline consumer price inflation was reported at 2.07% year-on-year in August 2025, up slightly from July, driven by food and staple costs. This remains within the Reserve Bank of India’s target band, offering policymakers some breathing space.

The government has sought to strengthen domestic demand through structural reforms. A major Goods and Services Tax overhaul will reduce the number of slabs to two—5% and 18%—with a separate 40% rate for products such as tobacco and sugary drinks. The move, expected to be phased in this autumn, is aimed at simplifying compliance and stimulating consumption. At the same time, the Union Budget 2025 raised the effective zero-tax threshold in the new income tax regime to ₹12 lakh, boosting disposable incomes for salaried households.

External risks, however, have intensified. The United States raised tariffs on Indian goods to 50% in late August, casting uncertainty over export prospects and weakening the rupee. Analysts suggest this could trim GDP growth by up to 0.3 percentage points this fiscal year, even as domestic tax cuts provide some offset. Indian exporters are already pivoting toward markets in the European Union, the UK, and Africa to reduce reliance on the US, though trade diversification will take time.

Urban consumption, a key driver of recent growth, has slowed in recent months, while rural incomes have been hit by severe floods in states such as Punjab and Himachal Pradesh. A weaker rupee has provided some relief to exporters but also raised costs for industries dependent on imported inputs. Combined with geopolitical tensions and a volatile global economy, these factors could weigh on India’s near-term resilience.

The government’s reforms may cushion the blow, but they come with limitations. Reducing indirect taxes and raising disposable incomes can support spending in the short term, yet they also strain government finances, widening the revenue deficit. Sustained gains in consumption will depend on job creation, rural recovery, and broader credit access, not just tax relief.

For India to meet its ambition of becoming the world’s third-largest economy by 2029, reforms must be paired with greater export diversification, trade deals with Europe and South America, and continued investment in logistics and infrastructure. Domestic reforms are a welcome step, but on their own they cannot insulate the economy from global headwinds.

India’s IPO Pipeline Swells as SEBI Smooths the Path for Listings

India’s primary market is heating up again, helped by a steady stream of regulator-led reforms and a queue of consumer and energy names preparing to list. Markets watchdog SEBI has recently cleared offerings from companies including services marketplace Urban Company, wearables brand boAt’s parent Imagine Marketing, and renewables developer Juniper Green Energy. These approvals arrive alongside broader changes meant to keep India among the world’s busiest IPO venues.

Urban Company is aiming to raise about ₹1,900 crore, combining a fresh issue with a large offer for sale by existing investors, according to its prospectus and subsequent approval updates. The home-services platform filed its draft red herring prospectus earlier this year before receiving the green light in September.

Imagine Marketing, which sells wearables and audio devices under the boAt brand, also secured regulatory clearance. While final sizing will depend on market conditions, reports suggest the company is seeking a valuation near $1.5 billion for its maiden float.

Juniper Green Energy is preparing a fully fresh issue of up to ₹3,000 crore to reduce debt and fund growth across its renewables portfolio, adding a large energy transition name to the IPO calendar.

The wave of approvals is broader than a handful of marquee names. In total, more than a dozen companies have received SEBI’s nod in recent weeks, with potential proceeds estimated at roughly ₹16,000 crore—an indication that issuers and bankers see sufficient depth in India’s equity market despite global volatility.

SEBI has also been working to reduce friction for issuers and investors. In September, the regulator lowered the minimum share-sale requirement for very large IPOs, extended the deadline for meeting the 25% public float, and unveiled a single-window entry for many foreign portfolio investors. These steps are designed to improve absorption and keep the pipeline moving even as global flows remain uneven.

The renewed listing activity, however, comes with familiar caveats. Over-ambitious pricing can hurt post-listing performance, as seen in 2021 with Paytm and other high-profile tech floats that struggled after debuting at lofty valuations. Bankers argue that current dealmaking is more disciplined, with greater attention to profitability and cash-flow visibility, though retail enthusiasm can still run ahead of fundamentals when consumer tech names go public.

Still, the direction is positive for India’s capital-formation story. If Urban Company and Juniper Green Energy deliver successful listings—and if boAt follows with a well-received float—the momentum could encourage a second wave of mid-market issuers later this year. Combined with SEBI’s recent reforms, such outcomes would highlight the growing maturity of India’s equity culture while widening access to domestic growth for public investors.

Editor’s note: Additional companies said to have received approvals in this window include consumer and healthcare names beyond the three profiled above; precise sizes and timelines may change with market conditions and updated red herring prospectuses.

Uttar Pradesh Bets on Electronics Manufacturing to Broaden Its Industrial Base

Uttar Pradesh is moving to anchor a bigger share of India’s electronics value chain, finalising a new policy to draw component makers, deepen supply links and cut import dependence. The Uttar Pradesh Electronics Component Manufacturing Policy-2025 (UP ECMP-2025), cleared by the state cabinet in early September, takes effect retrospectively from April 1, 2025, for six years and is aligned with the Union government’s Electronics Component Manufacturing Scheme. The policy targets ₹5,000 crore in fresh investment, envisages “lakhs” of direct and indirect jobs, and singles out 11 high-value components—such as displays, camera modules and multilayer PCBs—as priorities for local production.

Officials say the programme is meant to complement national incentives while streamlining state-level clearances. Under UP ECMP-2025, entrepreneurs receive state incentives on top of central benefits, with implementation routed through a nodal agency and an empowered committee to speed decisions. The design is meant to dovetail with India’s broader manufacturing push, including production-linked incentives for electronics and mobiles announced in the Union Budget 2025–26.

The policy arrives as the state seeks to scale beyond assembly into component ecosystems. Chief Minister Yogi Adityanath has directed officials to fast-track roll-out, framing the goals as US$50 billion in electronics output over five years and roughly one million jobs—targets repeatedly cited by senior state officials and reported in national media. Uttar Pradesh’s electronics hardware exports were about ₹37,000 crore in FY 2023–24, underlining a base that the government argues can expand with better logistics and supplier depth.

Infrastructure is a central plank. The upcoming Noida International Airport at Jewar—now slated for inauguration at the end of October with flight operations to follow—has become the logistics showpiece for investors weighing time-to-market. YEIDA is simultaneously planning cargo and logistics parks to plug factories directly into air freight and surface corridors around the Yamuna Expressway industrial belt.

Early moves suggest clustering is gathering pace. The Centre recently approved an electronics manufacturing cluster near Noida under the EMC 2.0 scheme, and YEIDA has green-lit a technology hub where anchor investments, including by Havells, are expected to generate thousands of jobs over the next two to three years. State investment promotion materials also flag multiple electronics hubs under development along the expressway.

The opportunity is sizable, but so are the execution risks. Environmental and land clearances can slow greenfield projects; investors frequently cite the need for predictable timelines and service-level accountability on approvals. Building reliable component ecosystems also requires sustained skilling and vendor development, not just headline subsidies. Industry groups say clarity on the fine print—such as the exact structure of state incentives and how they stack with central schemes—will be critical to tipping location decisions toward Uttar Pradesh rather than rival states with established electronics corridors.

Still, the timing aligns with national tailwinds. New Delhi’s budget lines and policy messaging continue to prioritise electronics as a growth driver, and Uttar Pradesh officials are positioning UP ECMP-2025 as a way to translate that momentum into on-ground manufacturing depth. If the state can pair incentives with credible last-mile execution—land, logistics, skilled labour and quick, transparent approvals—it stands to move from a fast-growing exporter to a genuine hub for core components within India’s electronics supply chain.

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