Romania attracts over 40 international retail brands between 2020 and 2025

Romania has emerged as an important destination for international retailers, with more than 40 new brands entering the market between 2020 and 2025, according to a report by Cushman & Wakefield Echinox. The combined annual turnover of these new entrants exceeds €80 billion globally, surpassing the estimated total revenue of Romania’s retail market, which stands at approximately €60 billion.

Bucharest’s major shopping centers served as the primary entry points for most of these brands. Fashion retailers accounted for the largest share of new market entries at 26%, followed by food and beverage operators (17%) and cosmetics and beauty stores (12%). Other sectors, including sports, toys, jewelry, pet shops, and pharmacies, also contributed to the diversification of new entries.

Notable fashion brands establishing a presence in Romania during this period include Primark, Lefties, HalfPrice, Calvin Klein Jeans & Underwear, Funky Buddha, and Bogner. In sports retail, JD Sports, Foot Locker, and Sports Direct entered the market. The beauty segment saw the addition of Kiko Milano, Rituals, and Bath & Body Works. Wittchen, a Polish brand specializing in leather goods and travel accessories, also joined the local market.

International food service operators such as Hesburger, Wendy’s, Popeyes, and Happy Restaurants expanded into Romania, along with Polish convenience store chain Zabka. Other brands currently evaluating market entry include the Dutch discount retailer Action and Malaysian chain MR.DIY.

The arrival of new retailers coincides with significant investment in Romania’s retail infrastructure. New developments between 2020 and 2025 have provided modern spaces for international retailers, with over 70% of new entrants choosing to open in shopping centers. These locations offer high foot traffic, strategic positioning, and a mix of retail and lifestyle services.

Most brands opted to open directly operated stores rather than using franchise models, reflecting a high degree of confidence in the local market and a longer-term strategic outlook. This approach allows companies to adapt their offerings more closely to Romanian consumer preferences.

Retailers from the US, Poland, Germany, Spain, and France have identified Romania as a strategic market, drawn by a combination of economic stability, rising consumer purchasing power, and a well-developed real estate sector. The growing demand for international brands and new retail formats continues to support expansion across fashion, food service, and beauty segments.

Investments in retail real estate remain strong, with both local and international developers supporting geographic and format diversification. This includes large malls in major cities and retail parks in secondary urban areas, creating opportunities for both new market entries and the expansion of existing operations.

Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, noted:
“Romania continues to establish itself as a stable and attractive market for international retailers. The combination of expanding modern retail infrastructure, increasing consumer demand, and consistent investor interest positions Romania among the most promising regional destinations for retail growth.”

According to the report, Romania now offers over 4.7 million square meters of modern retail space, providing a solid foundation for continued development in the sector.

Union Investment sells Munich hotel to Blue Coast Capital for €74.9 million

Union Investment has sold the Courtyard by Marriott Munich City Center to Blue Coast Capital for approximately €74.9 million. The transaction value slightly exceeded the property’s most recent valuation. Located at Schwanthalerstrasse 35-37, the hotel had been held in the UniImmo: Europa open-ended real estate fund since 2006.

The sale was driven by strategic portfolio considerations, particularly due to the asset’s age, and is expected to support the fund’s current liquidity position. Andreas Löcher, Head of Investment Management Operational at Union Investment, noted that the strong performance of Munich’s hotel market in 2024, along with sustained investor interest in key German cities such as Berlin and Hamburg, provided favorable conditions for the disposal.

“The Courtyard by Marriott was held for 19 years, and this transaction reflects investor appetite for hotel assets with value potential, in addition to traditional core properties,” added Madeleine Groß, Head of Investment Management Hotel at Union Investment.

The Courtyard by Marriott Munich City Center, completed in 2006, features 248 rooms and is located near Munich Central Station. Its proximity to popular destinations like Karlsplatz and Theresienwiese has made it a preferred choice for international visitors.

Union Investment was advised on the sale by JLL and legal counsel Hogan Lovells. Following the transaction, the company retains a portfolio of seven hotel properties in Munich, collectively valued at around €500 million.

CPI Europe AG announces executive board changes

CPI Europe AG has announced changes to its Executive Board, effective 31 July 2025. Radka Doehring will step down from her role as a member of the Executive Board following a mutual agreement with the company’s Supervisory Board. The decision was made due to personal reasons.

Although stepping down from her board responsibilities, Radka Doehring will remain with CPI Europe AG in a new capacity. She will continue to contribute to the company as an authorised signatory, allowing the organization to retain her expertise and institutional knowledge.

In the interim, Executive Board member Pavel Měchura will assume Radka Doehring’s duties on the board. He will take over her responsibilities to ensure continuity in strategic leadership and operational oversight during the transition period.

The Supervisory Board has initiated the process of identifying suitable candidates to strengthen the Executive Board and is currently evaluating internal and external options.

CPI Europe AG expressed its appreciation for Radka Doehring’s contributions during her time on the Executive Board and looks forward to her continued involvement in a new role.

Oil discovery off Polish coast raises environmental and policy concerns

A significant oil and gas deposit has been identified off the coast of Poland in the Baltic Sea, with current estimates suggesting reserves of around 200 million barrels. Despite the scale of the find, experts are urging caution regarding its potential extraction.

Claudia Kemfert, Head of the Department of Energy, Transport and Environment at the German Institute for Economic Research (DIW Berlin), notes that the overall impact on Germany’s energy security would likely be minimal. While the Schwedt refinery in eastern Germany has operated below capacity since the Russian oil embargo and continues to seek alternative sources, the newly discovered Polish reserves are expected to meet only 4–5 percent of Poland’s own oil demand in the short term.

Kemfert points out that Poland may use the find to strengthen its energy position, particularly in ongoing negotiations related to oil deliveries via the port of Gdansk. Tensions remain between Germany and Poland, with the latter reportedly tying cooperation to the expropriation of Rosneft’s shares in the Schwedt refinery.

Beyond energy considerations, the potential environmental and social impacts are significant. The presence of drilling infrastructure would be visible from the German island of Usedom, a popular tourist destination that attracts around one million visitors annually. Additionally, the risk of environmental damage, including possible oil spills, poses a threat to marine ecosystems and could lead to cross-border pollution.

Given these factors and the inconsistency of fossil fuel extraction with climate policy goals, DIW Berlin does not recommend moving forward with the project. The institute argues that the environmental risks and potential economic disruption outweigh the limited energy benefits.

Source: DIW Berlin

Upper Silesia’s warehouse market shows steady growth amid strong fundamentals

Upper Silesia continues to be one of Poland’s key warehouse and industrial markets, according to Savills’ latest report. By the end of the first quarter of 2025, the region’s total warehouse stock reached 5.86 million sqm, reflecting a 6% year-on-year increase. New supply during the quarter amounted to 118,100 sqm, nearly twice the volume recorded in the same period of 2024.

Despite the strong quarterly result, Savills notes that this level of new development is not expected to continue throughout the year. Future quarters are likely to see more moderate growth in new supply, which could contribute to a decline in the elevated vacancy rate. The ongoing development of build-to-suit (BTS) projects and high pre-let volumes suggest a stable and mature market.

More than half of the region’s warehouse stock has been built in the past five years, providing a high technical standard. The location’s strategic advantage at the intersection of the A1 and A4 motorways supports its role as a major logistics hub for both domestic and cross-border transport. Additionally, the Sławków Euroterminal strengthens the region’s connectivity within the European-Asian supply chain.

Leasing activity in the first quarter totaled 228,300 sqm, slightly higher than the same period in 2024. The structure of leasing transactions reflected a notable share of renewals, aligning with national trends. In a tight labour market, tenants are cautious about relocating, favouring stability over expansion in new developments.

As of the end of Q1 2025, approximately 270,000 sqm of warehouse space was under construction, with 52% pre-leased. Key ongoing developments include Booster Zabrze LemonTree (108,600 sqm) and Panattoni Park Sosnowiec Expo (62,100 sqm). Recently completed facilities include Prologis Park Ruda Śląska and Fortress Logistic Park Zabrze.

Savills notes that average annual demand over the past three years has approached 1 million sqm, underscoring the region’s long-term appeal. Upper Silesia benefits from its industrial heritage, skilled workforce, and established infrastructure, which continue to attract companies looking to expand their logistics and manufacturing operations.

As of early 2025, base rents for standard warehouse space range from EUR 4.20 to EUR 5.30 per sqm per month, with effective rents typically between EUR 2.90 and EUR 4.75 depending on incentive packages. Prices for investment land range from PLN 200 to PLN 400 per sqm, based on location and infrastructure.

While availability of development-ready land is decreasing, Upper Silesia remains a key region in Poland’s logistics sector, supported by high-quality stock, ongoing investment, and strong transport links.

Panattoni secures €10 million loan for expansion of Warsaw logistics park

Panattoni has obtained €10 million in financing from Santander Bank Polska to support the development of the second phase of its City Logistics Warsaw Airport IV project. The logistics facility is situated near Warsaw’s Southern Bypass, approximately 5 kilometers from Chopin Airport.

The expansion will add approximately 11,500 sqm of space, including 1,600 sqm designated for offices. The new phase has already secured its first tenant, a company specializing in internal logistics solutions, which plans to relocate to the site to benefit from increased space and more modern facilities.

Located near key expressways (S2, S7, S79, and S8), the site offers access to the broader Warsaw region and other parts of Poland. The design accommodates a variety of tenants, offering smaller modular units suitable for e-commerce, courier services, light production, and packaging operations. The building layout also allows for the integration of office or showroom space.

As with other Panattoni developments, the project follows sustainable building standards and will seek BREEAM certification at the Excellent level. The first phase of the project, already completed, includes a 10,000 sqm warehouse that is fully leased to a logistics operator.

When should accountants and CFOs alert management? Recognizing signs of financial strain

In any company, regardless of its size, the finance department is often the first to detect early signs of trouble. Issues typically appear first in financial data, statements, or cash flow. The roles of the accountant and Chief Financial Officer (CFO) should go beyond monthly reporting and tax compliance. Their responsibilities include identifying risks early and alerting management before problems escalate.

Proactive financial oversight is critical. Finance teams should not wait until problems are severe. Instead, they should act when the first indicators emerge. Recognizing and responding to measurable and repeatable warning signs can prevent further deterioration and give management time to implement corrective measures.

Accountants and CFOs should analyze trends, assess the impact of decisions, and flag risks before they materialize. This requires more than technical tools like liquidity ratios and cash flow projections. It also requires clear and timely communication with management—communication that leads to decisions and action.

Key Indicators of Financial Risk

One of the clearest signs of financial distress is deteriorating liquidity. This refers to whether a company has enough cash and expected incoming payments to meet upcoming obligations. A declining current ratio or quick ratio—indicators of liquidity—signals that the company may not have sufficient short-term assets to cover liabilities. If this trend continues, finance staff must raise the issue with management promptly.

Another warning sign is declining profitability. A company may maintain or even grow revenue while its profit margins shrink. Rising costs, ineffective pricing strategies, or operational inefficiencies can erode profitability over time. If margins continue to fall despite efforts to stabilize them, this indicates a structural issue that management should address.

Cash flow concerns are also critical. A company may report profits while struggling to pay its bills. Delayed supplier payments, deferred investments, or reliance on short-term borrowing to cover expenses are symptoms of cash flow problems. If a business cannot fund basic operations without outside financing, it is at risk of insolvency.

Problems servicing debt also point to financial instability. Rising debt levels combined with reduced ability to meet payment obligations signal growing financial strain. In such cases, financing current operations with new debt becomes unsustainable. Management should be informed if debt service becomes a burden on profits or if refinancing options are narrowing.

Operational issues can also foreshadow financial difficulties. Higher employee turnover, an increase in customer complaints, outdated systems, and falling service quality often lead to rising costs and shrinking revenue. These issues may appear non-financial at first but usually show up later in the company’s financial performance.

Communicating with Management

When raising concerns, the finance department must be clear and direct. Timely communication is key, especially when conditions can deteriorate quickly. Management should receive reports or presentations that explain what is happening, why it is happening, what the risks are if nothing is done, and what steps can be taken.

The goal is not to alarm, but to provide a factual assessment. Effective CFOs communicate honestly, even if the message is difficult. Their role is to guide management with accurate insights that help protect the company’s future.

Early intervention is a sign of a well-managed organization. When finance professionals are involved in strategic planning—not just reporting—they can help prevent crises or reduce their impact. However, this is only possible if they speak up when early warning signs appear.

Author: Mateusz Haśkiewicz – qualified restructuring advisor, legal advisor, president of the management board of Haśkiewicz Dyła Restrukturyzacje Upadłości sp. z o.o.

Dentons appoints Dirk-Jan Gondrie as Europe Head of Real Estate

Dentons has appointed Dirk-Jan Gondrie, a partner based in Amsterdam, as Head of Real Estate for Europe. His term will run through December 2027. In this role, he will oversee the strategic direction of the firm’s real estate practice across Europe, with a focus on talent development and performance.

Gondrie also continues to lead the Real Estate practice in the Netherlands. He has 18 years of experience advising institutional investors and developers on transactions involving logistics, data centers, residential, office, retail, and hotel assets. His work spans domestic and cross-border deals, property development, leasing, asset management, and restructuring. He also teaches at the Amsterdam School of Real Estate (ASRE).

Commenting on his appointment, Gondrie noted his intention to continue building the firm’s real estate services for clients such as institutional investors, private equity firms, and developers.

Wendela Raas, CEO of Dentons Europe, said Gondrie’s commercial perspective and leadership qualities are expected to support the continued development of the real estate practice.

Dentons’ global real estate team includes over 1,000 lawyers, with around 250 based in Europe. The team holds Band 1 rankings from Chambers Europe 2025 in six European jurisdictions.

More Czechs building financial reserves, one-third now save over CZK 5,000 monthly

A growing number of Czech households are prioritizing financial security, with one-third now saving over CZK 5,000 per month, according to a June survey conducted by Ipsos for Home Credit. This marks a five-percentage-point increase compared to last year. The data also shows a decline in the number of households without any savings—from 14% in 2024 to 10% this year.

The survey, which involved over 1,000 respondents, indicates that 11% of households continue to save less than CZK 1,000 monthly, and another 11% are unable to save at all. Nevertheless, the overall trend suggests an improvement in saving habits.

Home Credit ombudsman Miroslav Zborovský emphasized the importance of maintaining a financial buffer, recommending that households aim to cover at least three to six months of regular expenses. He noted that consistent saving, even in small amounts, contributes to long-term financial stability.

According to the findings, 25% of Czechs have a reserve equal to or less than one month’s income, while 26% have accumulated savings exceeding five times their monthly income. The number of people reporting an increase in their financial reserves rose to 28% from 19% last year. Meanwhile, 38% experienced a decrease in savings, though this is down from 48% in 2024.

The most significant improvements were observed among individuals aged 18–26, those with higher education, and households with monthly incomes above CZK 60,000. By contrast, households earning up to CZK 25,000 continue to face challenges in saving, with 20% unable to save at all and 30% saving only minimal amounts.

Savings accounts remain the most common method of storing funds, used by 72% of respondents. Use of current accounts for saving dropped to 32%, a seven-point decrease from last year. According to analyst Jaroslav Ondrušek of Home Credit, lower-educated individuals and residents of small municipalities (under 1,000 inhabitants) are more likely to store cash at home.

Investment is becoming increasingly popular, especially among younger and more educated Czechs. Nearly half of respondents now use investment products. Exchange-traded funds (ETFs) are the most favored, with 19% of respondents investing in them—rising to 40% among those with monthly incomes over CZK 50,000. Direct stock investments are preferred by 18%, especially among university students and young adults. Real estate is a favored option for high-income groups, while interest in cryptocurrencies is more pronounced among young people and Prague residents.

Prague sees decline in new apartment sales, but prices continue to rise

Developers sold 1,848 new apartments in Prague during the second quarter of 2025, marking a 13% decline compared to the previous quarter. Despite the decrease, this remains the second-highest sales figure since the third quarter of 2021, according to an analysis by the BuiltMind platform, which monitors more than 380 residential projects in the capital.

The average price per square meter for new apartments rose to CZK 168,029, representing a 2.7% increase quarter-on-quarter and a 9% rise year-on-year.

The number of units available on the market increased by 9% compared to the first quarter, reaching approximately 6,400 apartments. Several large residential projects were introduced during this period, contributing to the expanded offer. According to BuiltMind director Martin Dececký, these developments included conversions of former brownfield sites as well as new constructions in the outskirts of the city. Renovations of older buildings in central Prague also contributed to the supply.

Smaller apartments, particularly 1+kk units, were the most expensive on a per-square-meter basis, averaging around CZK 180,000. Larger units, such as 2+kk to 4+kk apartments, were priced between CZK 161,400 and CZK 169,000 per square meter. Dececký noted that compact apartments continue to attract investor interest due to their relatively lower cost and rental potential.

In terms of developers, Central Group led the market with 284 publicly recorded sales, followed by Finep with 212 units, Skanska Residential with 110, CPI Property Group with 103, and Penta Real Estate with 95 apartments.

Looking ahead, analysts expect demand for new apartments to remain strong, especially in the context of falling interest rates. The Czech National Bank recently reduced its key rate to 3.5%. BuiltMind anticipates that further rate cuts—particularly if rates fall below 3%—could trigger a notable uptick in residential sales, potentially exceeding 2,000 units per quarter.

According to the Czech Banking Association’s latest Hypomonitor data, banks and building societies issued CZK 37.5 billion in mortgage loans in June, a 9% increase from May. New mortgages excluding refinancing rose 7% to CZK 29.4 billion. Average interest rates on new loans declined slightly to 4.56%.

Source: CTK

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