REICO LONG LEASE acquires sixth property in Poland

REICO LONG LEASE, an open-ended mutual fund managed by REICO investment company Erste Asset Management, a.s., has added a logistics property in Bydgoszcz, Poland, to its portfolio. The acquisition brings the total number of assets held by the fund to six.

The newly acquired asset is the LPP Distribution Center, a logistics facility completed in the first quarter of 2022. The building offers 103,864 square meters of rental space and holds a BREEAM Excellent certification. It is located near the S5 and S10 expressways, which will eventually connect to the A1 motorway, improving its accessibility for logistics operations in both Poland and neighboring Germany.

The tenant is LPP Logistics, a subsidiary of international fashion retailer LPP. The company distributes clothing, footwear, and accessories through a global network of physical stores and online platforms. The lease agreement is long-term, with a three-year extension option.

Bydgoszcz continues to serve as a logistics hub for major brands such as Zalando, Carrefour, Kaufland, Aldi, Lidl, and Biedronka, supporting its role as a strategic distribution location in Poland.

“The property aligns with the fund’s strategy of investing in stable, long-term leased assets with strong tenants,” said Jiří Horák, CIO and Vice-Chairman of the Board of Directors at REICO IS EAM. “Its location and tenant profile contribute to the fund’s goals of stable returns, geographic diversification, and long-term portfolio sustainability.”

The transaction was completed with CBRE Investment Management as the seller. REICO was advised by CMS, KODA, Gleeds, and Colliers.

With the acquisition, real estate now represents 70% of the REICO LONG LEASE fund’s assets. The portfolio’s total market value is approximately CZK 5 billion. As of the end of April 2025, the fund had over 53,000 shareholders. Its targeted annual return remains in the range of 4–6%.

Launched in May 2021, REICO LONG LEASE is designed for conservative and moderately dynamic investors seeking exposure to long-term leased commercial real estate. The fund’s current portfolio includes two properties in the Czech Republic, three in Poland, and one in Slovakia.

Over one million foreigners working in Poland at the end of 2024

As of December 2024, foreigners accounted for 6.8% of all individuals performing work in Poland, according to data from Statistics Poland. The total number of foreigners engaged in employment or working under civil law contracts surpassed one million, reaching approximately 1,064,100 individuals. Over the course of 2024, the number of foreign workers increased by 6.4%, with 64,300 more foreigners working at the end of December compared to January.

The study encompasses both individuals employed in the national economy and those engaged under civil law contracts, excluding owners of agricultural holdings and individuals on specific task contracts. By the end of 2024, 414,300 foreigners were working under civil law contracts, an increase of 7.3% compared to January.

Throughout 2024, the share of foreigners in the workforce steadily rose from 6.5% in January to 6.8% in December. Men represented the majority of foreign workers, accounting for about 60% throughout the year. Among Ukrainian citizens, who made up the largest group of foreign workers at 67.1%, men constituted 51.9%. By contrast, among workers from other countries, men accounted for 75.8%.

Belarusian citizens formed the second-largest group at 11.0%. Other nationalities represented less than 3% each, though the number of workers from these groups grew rapidly. For example, the number of Colombian workers increased by 200%, Filipino workers by 52%, and Indian workers by 12.1% during 2024.

Foreign workers were generally younger than their Polish counterparts. The median age of foreigners performing work was 37 years, compared to 42 years for Polish workers. Ukrainian workers tended to be slightly older than foreigners from other countries, with a median age of 38 years.

The Warszawski Stołeczny region had the highest concentration of foreign workers, with 19.8% of the total. Conversely, the Świętokrzyskie region had the fewest. Foreign workers resided across all Polish powiats and cities with powiat status, with Ukrainian citizens forming the majority in many areas. In three powiats, Ukrainians accounted for more than 90% of the foreign workforce.

In terms of economic sectors, the highest proportion of foreign workers was found in administrative and support service activities, where they represented over 25% of the workforce. Other sectors with significant foreign worker presence included accommodation and food services (16.3%) and transportation and storage (14.4%). Ukrainian citizens remained the dominant group across all sectors.

These figures reflect ongoing trends in Poland’s labor market, where foreign workers play an increasingly important role, particularly in sectors characterized by a high demand for labor.

Source: Statistics Poland

New retail park opened in Pyrzyce, West Pomerania

Scallier has announced the opening of a new retail park in Pyrzyce, located in the West Pomeranian Province. The development was carried out in cooperation with PKB Inwest Budowa, which served as the project’s developer. Scallier was responsible for site selection, acquisition, advisory services, commercialization, and is managing the sales process.

The retail park is the first modern shopping facility in Pyrzyce, a town with approximately 13,000 residents, situated 45 kilometers from Szczecin. It is located near the town center, adjacent to residential areas and sports facilities, along provincial road No. 122. The town is accessible via three provincial roads, serving the broader Pyrzyce County with around 39,000 residents.

Construction began in early 2024 and was completed within a year. The retail park features direct external entrances to each unit and integrates its parking area with that of the neighboring Bricomarche store to improve accessibility.

The retail park comprises 2,000 square meters of gross leasable area, which was fully leased before the opening in late May 2025. Tenants include Media Expert, CCC, Sinsay, Worldbox, and Żabka. The site is located near other retail facilities such as Bricomarche, Lidl, and Biedronka.

Demand for retail space in smaller towns with limited existing retail infrastructure remains high, reflected in the rapid leasing of the Pyrzyce development, according to Scallier. The project aims to offer a range of retail options to meet the daily needs of residents from Pyrzyce and the surrounding areas.

Steady growth in number of active enterprises in Poland in early 2025

Poland recorded a total of 2,815,480 active enterprises in the first quarter of 2025, marking a 5.0% increase compared to the same period in 2024, according to data published by Statistics Poland. This growth highlights continued resilience in the country’s business sector, particularly among smaller enterprises.

Micro-enterprises, defined as those employing up to nine individuals, constituted 95.8% of all active enterprises and saw their numbers rise by 5.3% year-on-year. In contrast, small enterprises (10–49 employees) and medium-sized enterprises (50–249 employees) experienced modest declines of 0.2% and 0.7%, respectively. Large enterprises (those with 250 or more employees) saw a slight increase, with four additional entities compared to the previous year.

Sectoral data show that the largest proportion of active enterprises operated in trade and repair of motor vehicles (17.7%), followed by construction (15.1%) and professional, scientific, and technical activities (13.7%). Mining and quarrying, along with energy generation and supply, continued to account for the smallest shares of active enterprises, at 0.1% and 0.3%, respectively.

The most significant growth in enterprise numbers was observed in administrative and support activities (11.5%), education (9.0%), and arts, entertainment, and recreation (8.5%) sectors.

Geographically, the Mazowieckie voivodeship remained the dominant region, hosting 19.9% of all active enterprises, followed by Wielkopolskie (10.3%), Śląskie (10.3%), and Małopolskie (10.0%). The Opolskie voivodeship recorded the fewest enterprises at 1.9% of the national total. The Mazowieckie region also led among large enterprises, accounting for 26.8% of the total, ahead of Śląskie (12.1%) and Wielkopolskie (11.1%).

At the local level, the powiats with the highest number of enterprises outside cities with powiat status were Poznański (46,482 enterprises), Piaseczyński (26,392), and Krakowski (25,017). Conversely, the powiats with the fewest enterprises included Kazimierski, Bieszczadzki, Gołdapski, Węgorzewski, and Sejneński, each hosting fewer than 1,300 active businesses.

Compared to the first quarter of 2024, 90 powiats saw growth rates above the national average of 5.0%, with the strongest increases observed in Legionowski, Skierniewicki, Pucki, Gdański, and Piaseczyński powiats, where growth exceeded 7.0%. Notably, no powiat reported a decline in the number of active enterprises.

These findings indicate a stable expansion of Poland’s enterprise landscape, driven primarily by the micro-enterprise sector, with continued concentration in key economic regions and an increasing presence in support services and education sectors.

Source: Statistics Poland

GAP opens first outlet in Kraków at FACTORY Kraków

FACTORY Kraków, managed by NEINVER, has expanded its retail offering with the opening of a GAP outlet store, marking the brand’s first outlet location in Kraków. The American fashion brand adds to FACTORY Kraków’s portfolio of international retailers, supporting the centre’s growth strategy in southern Poland.

The GAP outlet spans nearly 330 sqm and offers a full range of everyday clothing for women, men, and children, including collections from babyGap, GapKids, and GapTeen. Customers can find a selection of denim lines, as well as GAP’s signature logo sweatshirts and tracksuits, with prices reduced by 30% to 70% compared to standard retail.

Roman Puchała, Retail Development Manager at GAP in Poland, noted that Kraków’s large population, strong tourism sector, and interest in fashion made it a priority location. He added that FACTORY Kraków’s established position among outlet centres in Poland made it a strategic choice for the brand’s expansion.

Andrea Aburra, Head of Leasing at NEINVER for Poland and Italy, emphasized that GAP’s arrival reinforces FACTORY Kraków’s appeal to international brands. The centre recently added several premium names, including Baldinini and Max Mara Fashion Group, strengthening its portfolio of brands such as Karl Lagerfeld, Hugo Boss, Lacoste, Nike, Levi’s, Wrangler, and Timberland. In the past few months, 700 sqm of new premium retail space has been introduced.

FACTORY Kraków maintains an occupancy rate of 96% and draws millions of visitors annually, both from the local population and tourists. Positioned near the city centre with convenient access to regional roads, motorways, and Kraków Airport, the centre also benefits from its connection to the adjacent Futura retail park, offering additional retail and dining options.

FACTORY Kraków continues to expand its range of premium products and global brands, reinforcing its role as a leading outlet destination in southern Poland.

OCHNIK to open new dual-concept store at Blue City in Warsaw

The Polish brand OCHNIK is set to open a new store in Blue City at the turn of August and September, introducing a ‘shop in shop’ concept. The new format will feature two distinct sections: one for clothing, divided into women’s and men’s collections, and another for accessories and luggage. The store will cover over 500 square meters and will be one of the brand’s largest locations in Warsaw.

In the clothing section, customers will find a wide range of outerwear, apparel, footwear, and accessories, while the accessories and luggage section will offer wallets, handbags, suitcases, and travel items. The store will be located on the first floor, where renovation work is currently in progress.

Arkadiusz Konarski, network development director at OCHNIK, stated that the brand is expanding its two-salon concept to improve product presentation and customer experience. OCHNIK currently operates over 50 such stores and plans to double this number in the coming years.

Blue City, with over 200 tenants and a 98% occupancy rate, continues to attract brands across a variety of product categories. Anna Gut, leasing director at Blue City, noted that OCHNIK’s decision to open the new store in the centre reflects its appeal to brands seeking a broad and established customer base.

IMF recommends tax reforms to strengthen Romania’s fiscal position

The International Monetary Fund (IMF) has recommended that Romania implement a series of tax reforms aimed at increasing fiscal revenues and addressing the country’s budget deficit. In its latest assessment, the IMF advised raising the standard Value Added Tax (VAT) rate, eliminating reduced VAT rates, and increasing excise duties.

Additionally, the Fund suggested that Romania transition to a progressive marginal personal income tax system, replacing its current flat tax model. According to the IMF, these measures are necessary to strengthen Romania’s fiscal position and ensure greater revenue stability.

Romania’s budget deficit has widened in recent years, driven by high public spending and underperforming tax revenues. The IMF’s proposals are intended to help the government stabilize public finances without resorting to broad spending cuts that could hinder economic growth.

The Fund emphasized that higher VAT and excise rates, coupled with a progressive income tax system, could improve revenue collection efficiency and align Romania’s fiscal framework more closely with practices observed in other European Union member states.

Romanian authorities have yet to formally respond to the IMF’s recommendations. However, the proposals are expected to prompt debate over potential impacts on consumption, investment, and income distribution within the country.

Bucharest: Employees Seek Better Work-Life Balance, Favor Four-Day Workweek

Genesis Property’s recent survey highlights that nearly 47% of employees would prefer a four-day workweek, reflecting a growing interest in improving work-life balance. Conducted between April and May 2025 with a nationally representative sample of 1,012 respondents, the survey also found that 63% of employees feel they manage their work-life balance better now compared to previous years, though many still see room for improvement.

More than half of those surveyed (52%) indicated a preference for working from the office at least three to four days a week. Recreational and social activities at the workplace were cited by 69% of respondents as having a positive effect on productivity. Key activities that help employees maintain balance include flexible scheduling (41.4%), participation in team social activities (40.8%), and taking active breaks (37.5%). Outdoor walks and team-building events are among the most common group activities.

In terms of office amenities, 38.2% of employees would like to see benefits such as massage services, fresh fruit, events, or training sessions provided by their employers. Other preferences include relaxation areas (32%) and ergonomic, personalized workspaces (27.8%).

Genesis Property plans to continue the development of YUNITY Park, a workplace campus envisioned by Liviu Tudor. The first two phases were completed in 2023 following an investment of over €30 million. The next phase, the Innovation Center, is scheduled to open within the next 12 months with an additional €20 million investment.

The survey was conducted online via the iVox platform among Romanian internet users. Women represented more than 45% of the respondents, and nearly 46% reported a net monthly income of over 5,000 lei.

Catella APAM boosts leasing activity at Arlington Park with new deals and renewals

Catella APAM has completed three leasing transactions at Arlington Park in Reading, including a record-setting deal for the business campus.

Cybit Ltd, a technology solutions provider, signed a two-year lease for a fully fitted suite on the third floor of Building 1420, achieving the Park’s highest rent to date. James Hunnybourne, Executive Chair at Cybit, highlighted the office’s quality and amenities as key to supporting the company’s business and wellbeing goals.

In addition, pSemi, a global RF semiconductor firm and Arlington Park tenant since 2018, renewed its 8,200 sq ft lease on the first floor of Building 1420 for another five years, extending its commitment through 2030. Automation Consultants, specializing in Agile and DevOps consulting, also renewed its 1,700 sq ft suite for two more years.

Max Bingham, Asset Manager at Catella APAM, noted the deals demonstrate Arlington Park’s ability to cater to both flexible and long-term workspace needs. The transactions underscore the campus’s strong market position and growing appeal to a broad range of businesses.

Real estate sector reacts to ECB’s latest interest rate cut

The European Central Bank (ECB) today reduced its key interest rate by 25 basis points to 2.0 per cent. Leaders from HIH Invest, KINGSTONE RE, BF.direkt AG, CAERUS Debt Investments, INTREAL, Hauck Aufhäuser Lampe, and Hamburg Commercial Bank shared their perspectives on the decision and its implications for the real estate sector.

Felix Schindler, Head of Research & Strategy, HIH Invest
Schindler noted that the ECB’s move was expected, given the eurozone inflation rate’s decline and ongoing economic uncertainty. He emphasized that while energy prices have eased, inflation in services and food remains persistent. He believes real assets like real estate could become more attractive as real returns on nominal investments diminish.

Dr. Tim Schomberg, CEO and Founder, KINGSTONE RE
Schomberg called the cut a possible turning point in the cycle of reductions, placing the rate close to neutral territory. He pointed out that stable long-term interest rates combined with adjustments in asset values are improving conditions for real estate investment. He expects the ECB to pause for observation following this decision.

Francesco Fedele, CEO, BF.direkt AG
Fedele expressed caution, suggesting the ECB might be cutting rates too quickly. He warned that inflation in services remains elevated and that lower key rates do not guarantee lower long-term borrowing costs, which are critical for real estate financing. Rising inflation expectations could, in fact, push financing costs higher.

Michael Morgenroth, CEO, CAERUS Debt Investments
Morgenroth highlighted falling inflation as a primary reason for the rate cut, alongside the need to support economic growth amid geopolitical uncertainties, such as US tariff policies. He considers the move a predictable response to the current economic climate.

Uwe Janz, Head of Treasury and Private Debt, INTREAL
Janz noted that the reduction had been widely anticipated, with inflation back within the target range and service sector inflation cooling. However, he warned that long-term real estate financing rates are influenced more by long-term inflation expectations and bond market dynamics, areas that still present risks.

Patrick Brinker, Head of Real Estate Investment Management, Hauck Aufhäuser Lampe
Brinker described the rate cut as a modest positive for the real estate market. While financing conditions had already improved in anticipation, he cautioned that long-term yields remain less affected. Selective market recovery is underway, particularly in specialized niches and premium assets, but broader optimism remains restrained.

Peter Axmann, Head of Real Estate Financing, Hamburg Commercial Bank
Axmann sees the ECB’s move as a signal of support for the weakening economy, helping to stabilize long-term interest rates and providing more certainty for investment calculations. He believes lower borrowing costs will assist companies reliant on income from commercial properties, potentially boosting transaction volumes.

Photo: Left to right: Prof. Dr. Felix Schindler, Head of Research & Strategy – HIH Invest
Uwe Janz, Leiter Treasury und Private Debt – IntReal International Real Estate,
Peter Axmann, Leiter Immobilienfinanzierung – Hamburg Commercial Bank,
Francesco Fedele, CEO – BF.direkt AG
Dr. Tim Schomberg, CEO & Founder, KINGSTONE RE
Michael Morgenroth, CEO – CAERUS Debt Investments in Düsseldorf,

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