Minister Kulhánek visits Hradec Králové region, discusses affordable housing and EU-funded projects

Minister for Regional Development Petr Kulhánek has kicked off his regional visits for 2025, with his first stop in the Hradec Králové Region. During the visit, he met with Governor Petr Kole and other regional representatives to discuss affordable housing, spatial planning, and EU-funded projects that are driving local development.

Kulhánek emphasized the importance of these regional visits in addressing local challenges and ensuring efficient allocation of European and national funds. “These trips allow us to see first-hand how our programs are impacting communities. The Hradec Králové Region is a great example of how EU and state subsidies can support key areas such as education, healthcare, and housing,” he said.

At the Regional Authority in Hradec Králové, discussions focused on building regulations, digitization, and spatial planning, with particular attention on the need for reforming zoning laws. “We need to strike a balance between efficient planning and streamlined construction processes. Today, planning regulations can slow down much-needed development, and we are working on solutions to improve this system,” Kulhánek stated. He also highlighted the urgent need to stabilize staffing at municipal building offices to ensure smoother permit processing.

As part of his itinerary, Kulhánek visited the municipality of Bolehošť, where a modular kindergarten expansion project was successfully completed with funding from the Integrated Regional Operational Programme (IROP). “Bolehošť experienced a baby boom and needed to quickly expand its kindergarten. Thanks to a 90% EU subsidy, amounting to nearly CZK 15 million, the new facility has been serving local children since last autumn,” the minister noted.

The visit also highlighted ongoing efforts to increase the availability of rental housing, particularly in Kostelec nad Orlicí, where 33 new rental apartments will be created by converting a former youth home. Kulhánek praised the proactive approach of local governments in addressing the housing crisis. “Municipalities have not invested in public housing for decades, and projects like the one in Kostelec set a strong example of how to reverse this trend. These apartments will also serve key professions like police officers, where shortages are affecting local services,” he explained.

The reconstruction in Kostelec nad Orlicí is expected to be completed by 2026, supported by the Affordable Rental Housing Program under the State Investment Support Fund (SFPI). In the Hradec Králové Region alone, SFPI has received 11 applications worth CZK 363 million, which will contribute to the construction of 96 rental apartments.

The minister concluded his visit in Lázně Bělohrad, where a major healthcare modernization project has been completed at the Centre for Comprehensive Rehabilitation. With CZK 35 million in EU funding from IROP, the center has been upgraded to provide advanced care for patients with severe cognitive and motor disabilities.

Kulhánek reaffirmed his ministry’s commitment to supporting infrastructure improvements through targeted EU and state funding, ensuring that local governments have the resources needed to enhance public services and address critical housing needs.

Source: CTK

Eurorent finalizes acquisition of SIXT Slovakia, expanding SIXT Polska’s operations

Eurorent, the owner of SIXT Polska, has finalized the acquisition of SIXT Slovakia, expanding its footprint in Central and Eastern Europe. With this acquisition, SIXT Polska is now responsible for operations in both Poland and Slovakia, marking a significant step in the company’s regional growth strategy.

The transaction, completed in September 2024, is a strategic expansion for Eurorent, allowing SIXT to enhance its mobility services to meet the evolving demands of international customers. The acquisition strengthens SIXT’s market leadership in mobility solutions across Central and Eastern Europe, reinforcing its ability to provide innovative and flexible rental services across borders.

“The acquisition of SIXT Slovakia is a key milestone in our expansion strategy for Central and Eastern Europe,” said Łukasz Żurek, President of SIXT Polska. “By combining our expertise in both markets, we can better leverage synergies and introduce new solutions that meet customer expectations. After analyzing the first quarter of our operations in Slovakia, we already see positive results in both operational efficiency and our service offering. We are closely monitoring customer preferences in Slovakia and Poland to tailor our services to the unique characteristics of each market.”

SIXT Polska highlighted that this strategic expansion creates new opportunities for fleet management and customer service in the region. By analyzing consumer behavior in both countries, the company aims to adjust its offerings to match local demand more effectively.

Market data reveals notable differences in rental behavior between the two countries. In Poland, nearly 89% of customers return their rental cars within the country, whereas in Slovakia, cross-border rentals dominate. In fact, 61% of Slovakian customers return their vehicles abroad, with Vienna being the most popular destination, accounting for 33% of all cross-border bookings.

The integration of operations in Poland and Slovakia also allows SIXT to better manage seasonal fluctuations in demand, optimize costs, and improve operational efficiency across both markets.

As part of the global SIXT network, which operates in over 4,000 locations across 105 countries, SIXT Polska provides a wide range of car rental services, including short-term and long-term rentals as well as premium limousine services with chauffeurs. The company has been present in Poland since 2002, building a strong reputation in the car rental sector.

With the integration of SIXT Slovakia, SIXT Polska is set to expand its influence in the region, offering greater flexibility and enhanced services to its customers across Central and Eastern Europe.

Source: ISBnews

New Wełnowiec earns BREEAM Communities Interim Certification

The Nowy Wełnowiec mixed-use ecological district, developed by Capital Park Group on a 30-hectare site in Katowice, has been awarded the BREEAM Communities Interim certification. It is the first large-scale mixed-use project in Poland to achieve this pre-certification, marking a milestone in sustainable urban development in the country.

The BREEAM Communities certification is among the most prestigious and rigorous global standards for sustainable urban projects. The Interim certificate is granted during the design phase, with a Final certification to follow upon project completion. Nowy Wełnowiec is aiming for a BREEAM Excellent rating, signifying its commitment to environmental, social, and economic sustainability.

“This is not just an investment project—it is a forward-thinking urban concept that aligns with the future of Polish cities,” said Sylwia Filewicz, Head of Development at Capital Park Group. “We are proud that our approach to sustainable, community-focused urban planning has been recognized with the BREEAM Communities Interim certification. This motivates us to continue creating spaces that are both environmentally friendly and beneficial to local residents.”

Nowy Wełnowiec is being developed on the revitalized site of the former Silesia Metallurgical Plant, located between Wojciech Korfanty Avenue and Konduktorska Street. The district is designed as a car-free public space, with all traffic relocated underground to level -1, allowing for extensive greenery, parks, and pedestrian-friendly areas.

The masterplan envisions 300,000 sq. m of above-ground development, with a majority allocated for residential use. The district will also feature restaurants, retail spaces, entertainment venues, services, education, and cultural institutions. Approximately 10 hectares will be dedicated to green spaces, including a four-hectare central park, plazas, flower meadows, woodlands, and ponds. Underground parking and electric vehicle charging stations will also be incorporated, along with extensive infrastructure for cyclists.

Nowy Wełnowiec has been designed to address contemporary social and environmental challenges, with advanced technologies to reduce the ecological impact of buildings. The project will feature Poland’s first centralized waste management and rainwater retention system, renewable energy sources, green roofs and terraces to mitigate the urban heat island effect, and biodiverse landscaping adapted to local climate conditions.

One of the key aspects of Nowy Wełnowiec’s development is community involvement. The project has been shaped through consultation meetings with residents, ensuring that urban planning solutions align with local expectations and everyday needs. The developer plans to continue engaging with residents through regular initiatives, fostering long-term community participation in shaping the district.

The first phase of construction, covering 7 hectares, is currently in the planning stage. This phase will include residential buildings, commercial spaces, restaurants, retail outlets, entertainment zones, and a portion of the central park. Construction is expected to begin in 2026. Additionally, the renovation of the historic compressor house, a landmark structure within the district, will commence in 2025 and is scheduled for completion in 2026.

The Nowy Wełnowiec concept was designed by JEMS Architects, while Sweco Poland oversaw the BREEAM certification process. With BREEAM Communities Interim certification now secured, the project sets a new benchmark for sustainable urban development in Poland, aiming to deliver a modern, eco-conscious, and community-driven neighborhood in Katowice.

Union Investment sells Hamburg hotel and office property to Plaza Hotelgroup

Union Investment has successfully sold a hotel and office property in Hamburg to Plaza Hotelgroup GmbH, a family-run hospitality company based in Heilbronn. The property, located at Holstenkamp 1-3 and Kieler Strasse 143-147, was part of the immofonds 1 portfolio, an open-ended real estate fund marketed exclusively in Austria. The sale was completed at a profit, though the financial details of the transaction have not been disclosed.

Built in 1998, the mixed-use building has been a stable income-generating asset for Union Investment over its ten-year holding period. It offers a total lettable area of 10,315 square meters, including 3,500 square meters of office space and a 180-room hotel.

The new owner, Plaza Hotelgroup, is a leading European hospitality company operating 60 hotels with over 8,000 rooms across Germany, Austria, and the Netherlands. The acquisition aligns with the group’s expansion strategy in key locations.

The transaction was brokered by Lütgen Breiholdt Immobilien, further reinforcing Plaza Hotelgroup’s growth in the Hamburg market.

Logivest brokers 18,000 sqm warehouse lease for rameder in Eastern Thuringia

Logivest has successfully brokered a long-term lease for approximately 18,000 square meters of warehouse, office, and social space in eastern Thuringia for Rameder Anhängerkupplungen und Autoteile GmbH, the European market leader in towbars and transport solutions. The lease agreement was completed on behalf of the property owner, Dream Industrial REIT.

The new logistics facility, located in the Saale-Orla district, will enable Rameder to expand its operations and consolidate several smaller external warehouses near its headquarters in Leutenberg, Thuringia. The company, which operates in 27 European countries through both online and offline channels, sought a modern, well-connected logistics site to support its growing business.

Logivest identified a state-of-the-art warehouse that met Rameder’s operational needs. The facility is equipped with LED lighting, a burglar alarm system, 15 loading ramps, and three ground-level gates. Additionally, its strategic location—just five kilometers from the A9 motorway—ensures efficient distribution, while good public transport connections enhance accessibility for employees.

“An existing logistics property of this size and quality in such a prime location is rare. We are pleased to have secured the ideal site for Rameder Anhängerkupplungen und Autoteile GmbH,” said Kathrin Ziegler, Consultant for Industrial & Logistics Letting at Logivest.

Dream Industrial REIT also welcomed the successful lease agreement. Anne Reunitz, Senior Asset Manager, commented, “We are delighted to have finalized the long-term lease and ensured seamless re-letting of the property. We appreciate the excellent cooperation with Logivest.”

Rameder Anhängerkupplungen und Autoteile GmbH has already relocated to the facility, reinforcing its logistics capabilities and strengthening its market position in Europe.

Investing in AI: High risks, market volatility, and a shift toward business value

The rapid growth of artificial intelligence (AI) development companies has attracted investors worldwide, but the sector remains volatile, with high implementation costs and regulatory risks posing significant challenges. Assessing the measurable value of AI investments remains difficult, creating uncertainty about potential returns on investment, according to investment expert Radosław Jodko.

The instability of AI-related stocks was recently highlighted when USD 580 billion in market value was wiped off Nvidia’s stock in a single day, following a 17% drop in share price. The market reaction came after the emergence of DeepSeek, a Chinese AI model that is reported to be as efficient as American alternatives but significantly cheaper.

“The DeepSeek case demonstrates the dynamic and unpredictable nature of the AI market,” said Jodko. “We are still in the growth phase of AI, and both companies and investors are learning from these fluctuations. While some argue that AI is an overvalued investment, it is too early to make such claims. AI remains a transformative force, influencing business models and even social structures. However, what this situation proves is that no tech giant is invulnerable—not even Nvidia. It also highlights a new phase in the U.S.-China tech rivalry, with China proving that it can develop advanced AI without access to American chips.”

DeepSeek, a Chinese AI startup, has shaken Wall Street, impacting not only Nvidia but also other Big Tech firms. The reason? The model is reported to be comparable to OpenAI’s GPT-4 but at a fraction of the cost. While GPT-4’s training costs exceeded USD 100 million, DeepSeek reportedly required less than USD 6 million—a massive difference that has forced investors to reassess AI development costs and competitive advantages.

According to Jodko, the AI sector is entering a phase of “real accountability”, where investors and companies are shifting from experimentation to implementation. Businesses are now focusing on scaling AI solutions to drive profits, rather than simply testing AI’s capabilities.

A recent IBM Institute Business Value report, conducted with Oxford Economics in late 2024, found that 63% of executives expect AI to have a significant financial impact on their organizations within one to two years. Additionally, 46% of executives plan to scale AI solutions, focusing on optimizing existing processes and systems, while only 6% intend to continue experimental AI projects.

“The biggest challenge today is assessing AI’s measurable business value,” said Jodko. “Many investors and companies struggle to determine clear financial benefits from AI investments, leading to uncertainty about return on investment (ROI). For companies, the real difficulty lies not just in optimizing existing systems but in fundamentally transforming business models to integrate AI-driven services and innovation.”

Jodko believes that 2025 will be a decisive year in proving the real connection between AI investments and business profitability. A major shift is expected as lower AI computing costs—as demonstrated by DeepSeek—make AI more accessible and easier to implement across industries.

“The lower cost of AI computing power is a game changer. It will accelerate AI adoption, widen its range of applications, and make implementation easier for businesses. The effects of this shift will become evident very soon,” Jodko concluded.

While AI remains a high-risk investment, the industry’s growing focus on profitability, lower operational costs, and global competition is reshaping its trajectory. Investors will be closely watching whether AI development translates into sustainable long-term business value.

Author: Radosław Jodko

NRF joins MLP Bucharest West as new tenant in major lease agreement

MLP Group has secured a long-term lease agreement with NRF, a leading supplier of automotive replacement parts and industrial cooling solutions, for 20,100 square meters of warehouse and office space at the MLP Bucharest West logistics center. The facility is scheduled for completion and handover in November 2025. The transaction was facilitated by Newmark Polska, a real estate consultancy firm.

The lease agreement includes 18,600 square meters of warehouse space and 1,500 square meters for a modern office. NRF’s new facility is part of the third phase of the MLP Bucharest West expansion, following the first two phases, which delivered 38,000 square meters of modern space, now fully leased. Upon completion of NRF’s facility, the total leased area at MLP Bucharest West will exceed 58,000 square meters, with 41,000 square meters still available for lease.

“We are extremely proud to welcome NRF as one of our tenants at MLP Bucharest West. This long-term lease agreement not only highlights the appeal of our logistics park but also underscores its strategic importance for the logistics and distribution industry,” said Olga Melihov, Chief Country Officer Romania at MLP Group S.A. She emphasized that the state-of-the-art facilities at MLP Bucharest West adhere to modern solutions and the highest ecological standards, making them an ideal choice for companies seeking efficient logistics operations.

NRF’s leadership team also recognized the significance of this expansion, with Zbigniew Ruba, Commercial and Operational Director Aftermarket at NRF, stating, “Establishing our presence at MLP Bucharest West is pivotal. Romania’s Chitila district offers exceptional logistics infrastructure and skilled talent, aligning with our growth ambitions both internationally and locally.”

George Prodan, Sales & Operational Director for South-Eastern Europe at NRF, reinforced this sentiment, saying, “This 20,100-square-meter warehouse will strengthen our footprint in Romania, ensuring efficient service across South-Eastern Europe.”

Additionally, Tomasz Kutyła, Director of Operations Aftermarket at NRF, highlighted the technological advancements that will be incorporated into the new facility. “This warehouse will feature cutting-edge operational technologies, and will also include a dedicated space for technical training, validation, and warranty applications,” he added.

MLP Bucharest West is situated in Romania’s most sought-after warehouse region, in Chitila, northwest of Bucharest, near the city’s ring road. The logistics park, classified as a Class A industrial and logistics project, is being developed on an 18.3-hectare plot and will ultimately provide 99,000 square meters of warehouse space.

The entire facility adheres to the highest ecological standards and undergoes BREEAM certification. With optimal road infrastructure, built-to-suit solutions, and dedicated tenant support, MLP Group retains completed logistics parks in its portfolio under a build & hold strategy, ensuring ongoing management and maintenance of its developments.

“This deal confirms NRF’s position as a market leader in automotive aftermarket parts and cooling solutions and marks an important step in its expansion within the EU,” said Michał Rafałowicz, Regional Director at Newmark Polska, who praised the collaboration and professionalism of the NRF team during the transaction process.

With its strategic location, advanced infrastructure, and strong market demand, MLP Bucharest West continues to solidify its reputation as a leading logistics hub in Eastern Europe, offering tenants an ideal base for distribution and expansion.

Catella acquires French logistics portfolio for CLD+

Catella Real Estate AG (CREAG), now operating under Catella’s new fund investment platform alongside Catella Investment Management GmbH (CIM), has acquired three newly developed logistics properties in St. Etienne and Avignon, France, for the special alternative investment fund (AIF) “Catella Logistik Deutschland Plus” (CLD+). The transaction was facilitated by local operating partner Aquila Asset Management SAS (Aquila), with the fully leased properties purchased from French developer Vectura Immobilier. The long-term tenants include a logistics company and a parcel service provider.

CIM acts as the advisor to the “Catella Logistik Deutschland Plus” fund, with Catella Real Estate AG providing the German KVG platform.

Wolfgang Oelke, Business Unit Manager Commercial at CIM, commented: “We are proud to secure our first logistics investment for the ‘Catella Logistik Deutschland Plus’ fund in France. This acquisition includes three modern cross-dock logistics assets leased to strong tenants in strategic locations, reinforcing our European logistics footprint. With this deal, the fund now holds 23 properties across four European countries and continues to expand while improving ESG standards.”

Olivier Levesque, Managing Director and Partner at Aquila Asset Management SAS, added: “We are excited to support CREAG in its first logistics acquisition in France. Logistics is a key asset class for Aquila, and we will continue to identify opportunities with both Core and Value-added strategies.”

In St. Etienne, Catella acquired two adjacent cross-dock logistics properties in Rue de la Talaudière, spanning approximately 50,000 m² in total plot area. The first property, completed in February 2024, offers 8,600 m² of rental space (92% warehouse, 8% office) and is leased to a logistics company. The second property, delivered in December 2024, provides 5,950 m² of rental space (92% warehouse, 8% office) and is fully let to a parcel service provider.

In Avignon, the acquired cross-dock logistics facility at 370 Avenue Thomas Edison in Sorgues features a total leasable area of approximately 4,200 m² (93% warehouse, 7% office). Following extensive renovations completed in October 2024, the modernized property is fully leased to a parcel service provider under a 10-year lease agreement. The site also includes the potential for solar panel installations.

Both properties in St. Etienne and Avignon are designed to achieve BREEAM “Very Good” certification, incorporating advanced technical specifications such as a floor load-bearing capacity of 5t per m² and a clear height of 9.2m. Additionally, the roof areas are intended for photovoltaic (PV) system installations.

St. Etienne is located in southeastern France, approximately 60 km southwest of Lyon, a major economic hub. This positioning provides direct access to France’s logistics network and central regions.

Sorgues, in the Vaucluse department of Provence-Alpes-Côte d’Azur, is situated about 10 km east of Avignon, 90 km southwest of Marseille, and 110 km south of Montpellier. Its location in the Rhône Valley enhances its connectivity within the French logistics corridor.

Vectura Immobilier, founded in 1975 as a family-owned logistics firm, has evolved into a prominent developer of industrial and logistics facilities across France. The company oversees the entire value chain, from land acquisition and project development to construction, financing, leasing, and asset management.

Catella Real Estate AG received legal counsel from White & Case, tax advisory services from EY, technical due diligence from Delpha Conseil, and notarial support from Allez & Associés Notaires.

Catella appoints Otto Rompelman as Managing Director of Investment Management Benelux

Catella Investment Management Benelux (CIMB) has appointed Otto Rompelman as its new Managing Director, effective 1 April 2025. The appointment marks a significant leadership shift as the firm looks to expand its investment strategies and client base across the Benelux region.

With over 25 years of experience in real estate investment, finance, and fund management, Rompelman brings a wealth of industry expertise to CIMB. For the past eleven years, he successfully led Immo Finance B.V., the company he co-founded in 2013, providing strategic advisory services to European and American investors in the Benelux real estate sector. Throughout his career, he has worked closely with leading international real estate firms, specializing in strategy formation, investment structuring, asset management, and transaction advisory services.

Expressing his enthusiasm for the new role, Rompelman emphasized CIMB’s strong foundation and future growth potential. “I am excited to join Catella Investment Management Benelux and build on the team’s impressive achievements. Despite a challenging transaction market, CIMB has effectively managed its asset base, successfully completing developments, disposals, and acquisitions. I look forward to expanding our client portfolio beyond Catella’s internal funds to include international and local investors, while also introducing more value-add investment strategies.”

CIMB, a key investment platform within Catella Group, currently manages a €2 billion portfolio, overseeing 78 residential, commercial, and parking assets across the Netherlands, Belgium, and Luxembourg. The firm serves approximately 6,800 tenant clients and has developed extensive expertise in cashflow-generating acquisitions, property development, and transformation projects, such as office-to-residential conversions.

In his new role, Rompelman will form the CIMB Management Team alongside Michiel Assendelft, Head of Asset Management, and Julia Strijp-Mulder, Head of Operations & HR. Timo Nurminen, Head of Investment Management at Catella Group, expressed confidence in Rompelman’s leadership, stating:

“Otto Rompelman brings the perfect mix of entrepreneurial mindset and industry expertise. His leadership will be instrumental in executing our growth strategy, expanding our external client base, and strengthening our position in the Benelux market.”

With this strategic appointment, Catella reaffirms its commitment to enhancing its investment management capabilities in the region, positioning CIMB for continued growth and innovation in the dynamic real estate sector.

Serbia’s hydropower revitalization: Vlasinske System Set for Major Overhaul

After decades of discussion, Serbia is finally moving forward with the long-awaited reconstruction of the Vlasinske hydropower system, a project that will significantly enhance the country’s renewable energy capacity. Backed by €67 million in financing from the European Bank for Reconstruction and Development (EBRD) and a €15.4 million grant from the European Union (EU), the modernization project is set to begin in spring 2025, marking a major milestone in Serbia’s energy transition.

The Vlasinske system, which consists of four cascade hydropower plants, has been in operation for more than 70 years without significant upgrades. Built between 1946 and 1949, the system is a remarkable engineering feat, featuring two artificial lakes, Vlasina and Lisina, connected by nearly 60 kilometers of canals and tunnels that supply the plants with water. Despite its historical importance and the ability to power approximately 60,000 households, its aging infrastructure has made maintenance increasingly difficult and costly.

“This project has been a long time coming,” says Marko Filipović, an engineer at Serbia’s electric power company (EPS), who has been closely involved in the discussions surrounding Vlasinske’s redevelopment. “Over the years, EPS prioritized other projects, but the growing challenges of maintaining the system made it clear that full reconstruction was the best solution.”

A Major Investment in Serbia’s Renewable Energy Future

The modernization effort will replace essential equipment, including all turbines, generators, and hydromechanical systems, ensuring the plants can operate at full capacity with fewer repairs. The upgrades will also lead to a more balanced and stable electricity network while slightly increasing generation capacity.

Beyond these immediate benefits, the project is a key component of Serbia’s strategy to shift towards renewable energy. While hydropower accounts for nearly 30% of the country’s electricity production, Serbia remains heavily dependent on coal, which still generates around 60% of its power. Upgrading aging hydropower plants is a crucial step in reducing reliance on fossil fuels and extending the lifespan of Serbia’s clean energy infrastructure.

“Revitalizing these plants is crucial for Serbia’s energy future,” says Jovan Ilić, head of EPS’s Hydro and Renewables Division. “The Vlasinske system is our priority as the oldest plant of its kind, but modernization efforts won’t stop here. We are working on similar projects for Bistrica, Potpec, and Djerdap 2, with future plans to upgrade Uvac, Kokin Brod, and Pirot.”

A Broader Push for Renewable Energy

While hydropower remains a cornerstone of Serbia’s clean energy efforts, the country is also expanding its wind and solar energy capacity, which currently account for less than 3% of the national energy mix. Recognizing the limited potential for further hydropower expansion, Serbia has ramped up investments in alternative renewable sources, working closely with the EBRD, the EU, and international donors.

Since 2020, the EBRD has been assisting Serbia in designing renewable energy auctions, helping attract private investment into the sector. The first auction in 2023 was considered a success, leading to the announcement of a second auction in November 2024, signaling Serbia’s commitment to expanding its clean energy portfolio.

Despite the challenges ahead, Serbia’s ambitious energy transition plan reflects a clear commitment to a sustainable future. With engineers like Marko Filipović leading the charge, the revitalization of the Vlasinske hydropower system is not just an upgrade of an aging facility—it is a pivotal moment in Serbia’s clean energy transformation.

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