Crescon completes Aldrov resort project and begins new development in Pec pod Sněžkou

Vítkovice has completed the second phase of its luxury Aldrov Resort project in the Krkonoše Mountains town of Vítkovice. With the final phase now approved, the entire high-end mountain resort is fully operational, offering an extensive range of amenities and services. Only 20% of the 144 apartments remain available for purchase, providing prospective buyers with a last chance to invest in this sought-after location.

Following the completion of Aldrov Resort, Crescon has already embarked on its next mountain real estate project, Zahrádky 1000 in Pec pod Sněžkou. The new development will feature 33 exclusive apartments and is expected to set a new standard for luxury mountain living.

The Aldrov Resort consists of nine modern residential buildings offering apartments ranging in size from 37 to 263 square meters, with layouts from 1+kk to 6+kk. The project is distinguished by its comprehensive infrastructure, which includes:
• A wellness center with a swimming pool, whirlpool, and sauna world
• A fitness room and a children’s playroom
• Two on-site restaurants – the newly opened Hospoda Maják, offering traditional Czech cuisine, and Aldrovka, featuring a modern wooden interior that harmonizes with the mountain setting
• A conference area for events, weddings, and even private concerts

Apartments at Aldrov Resort offer a unique investment opportunity, with owners able to use their properties for personal recreation while benefiting from commercial rental income. The resort is managed by Aldrov Servis, a professional hotel operator with extensive international experience, ensuring that owners can enjoy their investment without concerns about day-to-day management.

“We are delighted that Aldrov Resort has been completed exactly as planned, delivering on our promises to buyers in terms of quality, infrastructure, and services,” said Radek Zábrodský, director of Crescon. “This achievement gives us confidence as we move forward with our next holiday property development, Zahrádky 1000, where we will uphold the same high standards.”

Building on Aldrov Resort, Crescon is now constructing the Zahrádky 1000 project, situated in Pec pod Sněžkou, one of the most attractive ski resorts in the Czech Republic. The development will offer 33 luxury apartments, ranging from 1+kk to 4+kk layouts, located directly next to the Zahrádky ski slope.

The new residential complex will feature premium amenities, including:
• A private wellness area with a sauna and relaxation lounge
• Underground parking and secure storage for seasonal equipment
• High-end furnishings using a blend of natural and modern materials

Owners at Zahrádky 1000 will have the option to either use their apartments for personal enjoyment or generate income through professional rental management services.

The success of Aldrov Resort highlights the increasing demand for luxury mountain properties that offer a combination of investment potential and leisure appeal. Compared to city-based investment apartments, mountain properties provide hassle-free ownership, with professional management handling rentals, maintenance, and guest services.

“Our apartments allow owners to enjoy their investment without the usual burdens of property management. With year-round demand for accommodation in the Krkonoše Mountains, buyers can expect solid returns and a worry-free experience,” added Zábrodský.

The Krkonoše Mountains are one of the most popular destinations for both winter and summer tourism. In winter, residents can enjoy access to the nearby Aldrov ski resort and Špindlerův Mlýn, the largest ski area in the Czech Republic. During the summer months, the region offers extensive hiking and cycling trails, a rope park, a bike park, and even golf and mini-golf facilities.

For those seeking relaxation, the resort provides outdoor yoga spaces and wellness programs, ensuring a balanced lifestyle.

Polish commercial real estate investment market sees significant growth in 2024

The Polish commercial real estate investment market witnessed a remarkable resurgence in 2024, with more than 120 transactions totaling over EUR 4.8 billion. This represents a 136% increase in transaction volume compared to 2023, with the number of deals growing by 50% year-on-year. While this performance nearly matched the 2015-2017 annual average of EUR 4.6 billion, it remains around 30% below the record-breaking levels observed between 2018 and 2022.

Diverse Investment Sectors Drive Market Growth

The office and retail sectors accounted for the largest shares of investment activity in 2024, representing 34.4% and 33.9% of the total volume, respectively. Notably, three major retail transactions—worth approximately EUR 1.063 billion—significantly boosted the sector’s performance. The warehouse and industrial sector contributed over 26% to the total investment volume, reflecting sustained interest in logistics properties. Investors also showed growing interest in hotels, purpose-built student accommodation (PBSA), and institutional rental housing (BtR/PRS).

“The substantial 136% increase in investment volume demonstrates investors’ renewed confidence in the Polish market,” said Mark Richardson, Head of Investment at Savills. “Key transactions across multiple sectors highlight investors’ diverse strategies, with a focus not only on prime locations but also on niche segments such as student housing and institutional rentals.”

Record-Breaking Fourth Quarter

The final quarter of 2024 proved to be the most active period, accounting for 48% of total investment volume. Major deals during this time included the sale of a 49% stake in CPI Property Group to Sona Asset Management, as well as the acquisition of two major shopping centers—Silesia Shopping Centre in Katowice and **Magnolia Park in Wrocław—**by Nepi Rockcastle.

Investor Landscape and Market Entrants

Domestic investors were responsible for around 10% of the total transactions, investing nearly EUR 0.5 billion across more than 40 deals. Their purchases included three office buildings designated for public institutions. Meanwhile, investors from Central and Eastern Europe, including Ukraine and the Baltic states, accounted for 20% of total transaction volume, while South African investors contributed over 20%.

New investors entered the Polish market in 2024, including South Africa’s Emira Property Fund, which acquired a 25% stake in DL Invest, and the UK’s Sona Asset Management, which secured a 49% stake in CPI Property Group. Estonian investment firm Summus Capital also made its debut with the purchase of two office buildings.

Office Sector Makes a Strong Comeback

The office sector recorded around 45 transactions, with a total value exceeding EUR 1.64 billion—a nearly fourfold increase compared to 2023. Warsaw accounted for the bulk of investments at EUR 1.34 billion, with an additional EUR 298 million invested in regional cities.

Some office buildings were acquired for direct use by their new owners, including purchases by public institutions and private buyers such as the acquisition of the Mazowiecka 2/4 property and the Bokserska Office Center. Others were bought with plans for redevelopment, such as the transformation of the Curtis Plaza and the myhive Mokotów complex from office to residential use.

“The resurgence of the office sector underscores the growing appeal of Poland’s regional cities,” noted Jacek Kalużny, Head of Operational Capital Markets at Savills. “Investors are now focusing on both prime Warsaw locations and emerging office hubs.”

Retail Sector Attracts Major Investments

Investment in the retail sector exceeded EUR 1.6 billion, with over EUR 1 billion coming from three major deals, including the sale of a six-shopping-center portfolio to Star Capital Finance for EUR 285 million. Investors continue to focus on retail parks and smaller retail properties, which have demonstrated resilience amid changing consumer habits.

High-profile transactions included the sale of BIG Gorzów and Glinianka retail parks to Big Shopping Centers and smaller retail sites such as Smart Park Syców and Smart Park Zgorzelec, acquired by Newgate Investment. Nepi Rockcastle emerged as the most active investor in the sector, acquiring key retail assets to expand its portfolio.

Warehouse and Industrial Sector Sees Steady Growth

The warehouse and industrial sector witnessed 30 deals in 2024, with a total value of **EUR 1.26 billion—**a 27% year-on-year increase. Investors focused primarily on modern logistics facilities in strategic locations, reinforcing Poland’s role as a major logistics hub in Central and Eastern Europe.

A significant highlight for 2025 is the expected Ares Management Corporation’s acquisition of GLP Capital Partners’ international portfolio, which includes assets in Poland. The deal, valued at USD 3.7 billion, is expected to further boost the sector.

Living Sector Gains Momentum

Investment in the living sector, including PBSA and institutional rental housing, totaled EUR 141 million in 2024. One of the standout transactions was the acquisition of LivinnX Krakow dormitory (now Basecamp) by Xior Student Housing, representing 20% of the total annual sector volume.

The BtR sector also saw significant activity, with transactions such as the purchase of properties at Siennicka 29A in Warsaw and Wrocławska 53J in Kraków. Forward funding projects, including Griffin Capital Partners’ investment in LifeSpot Ostrobramska 86, highlight the sector’s growing appeal.

A key development in the sector was the launch of a private dormitory platform by Signal Capital Partners, Griffin Capital Partners, and Echo Investment, aiming to establish a portfolio of 5,000 student beds within the next three to five years.

Outlook for 2025: Continued Growth and Investor Confidence

Experts anticipate continued growth in the Polish commercial real estate market, supported by the diversification of investment sectors and the strong presence of foreign investors. The office sector is expected to maintain its momentum, while the retail and logistics segments remain attractive due to their resilience and strategic importance.

With increasing demand for student accommodation and rental housing, the living sector is set to expand further, particularly in key academic cities such as Warsaw, Kraków, and Wrocław.

As the market regains pre-pandemic levels of activity, Poland continues to cement its position as a prime investment destination in Central and Eastern Europe, attracting both regional and international investors eager to capitalize on its growth potential.

Link to report in PDF format below.

Czech economic sentiment declines in January as consumer confidence weakens

The Czech Republic’s composite confidence indicator, which measures overall economic sentiment, declined slightly in January, falling by 0.3 points to 97.4, compared to the previous month. The downturn was driven primarily by a decline in consumer confidence, which dropped by 3.4 points to 97.1, while business confidence showed a marginal improvement, rising by 0.4 points to 97.5, according to the latest data.

Within the business sector, sentiment varied across industries. Confidence in the industrial sector saw a notable increase of 4.3 points, reflecting optimism about production and demand. However, confidence declined in other areas, with selected service sectors experiencing a drop of 3.4 points, the construction sector falling by 1.8 points, and trade sector confidence stagnating at -0.8 points.

Consumer confidence, in contrast, weakened for the second consecutive month. The share of consumers who expect the overall economic situation to worsen over the next twelve months saw a slight increase. Similarly, an increasing number of households anticipate a deterioration in their financial situation over the coming year, with more consumers reporting a worse financial position compared to the previous twelve months.

Despite growing concerns about future economic conditions, consumer attitudes towards major purchases remained relatively unchanged, with the proportion of respondents viewing the current period as unfavorable for significant expenditures staying stable.

Overall, the decline in economic sentiment reflects lingering uncertainty among Czech consumers, while the business sector remains cautiously optimistic in certain industries. Economic analysts will closely monitor future developments to assess whether business confidence gains can offset the persistent concerns among households.

Source: Czech Statistical Office

PPF Group acquires Czech Republic’s largest hotel, ÚOHS approved the transaction

PPF Group, owned by Czech billionaire Renáta Kellnerová and her family, has received regulatory approval to acquire Quinn Hotels Praha, the owner of Hilton Prague, the largest hotel in the Czech Republic. The Czech Office for the Protection of Competition (ÚOHS) approved the transaction, confirming that the merger poses no threat to market competition. The financial details of the deal were not disclosed, but industry experts estimate its value to be in the billions of Czech crowns. According to reports from Hospodářské noviny, the purchase price could range between CZK 6.25 billion and CZK 8.25 billion, with the bid potentially exceeding €350 million (over CZK 8.8 billion).

Quinn Hotels Praha, which currently owns Hilton Prague, is controlled by Irish investors, with its sole shareholder being Quinn Group Luxembourg Hotels. According to the company’s 2023 financial statements, Quinn Hotels Praha reported a net turnover of CZK 1.3 billion, closing the year with a loss of CZK 160 million, following a CZK 239 million profit in 2022. A valuation by CBRE in late 2022 estimated the hotel’s worth at €250.4 million, or more than CZK 6 billion.

PPF is acquiring Quinn Hotels Praha through its real estate subsidiary, PPF Real Estate. According to Robert Ševela, Chairman of the Board of PPF Real Estate Holding, the acquisition aligns with the company’s comprehensive approach to real estate investment, which spans various sectors, including tourism, congress tourism, and event organization. “The Hilton Prague investment perfectly complements our strategy of creating long-term, sustainable value through active property management,” Ševela stated.

Recent reports indicate that PPF Group has partnered with billionaire Michal Strnad to establish a joint venture aimed at real estate investments. Their new company, Majestic Hospitality, was registered in December 2024, with PPF holding a 70% stake through PPF Real Estate and Strnad’s Industry SPV owning the remaining 30%. The joint venture was formed shortly after PPF announced its agreement to acquire Quinn Hotels Praha.

Source: CTK
Photo: Hilton Prague

Czech property market sees rising prices for older apartments and houses across most regions

The prices of older apartments and family houses increased in nearly all regions of the Czech Republic in 2024, driven by rising demand and improving economic conditions. According to an analysis conducted by the EHS, which collects data from Bezrealitka and Maxima offices, only the Karlovy Vary region saw a decline in house prices.

The analysis found that older apartments in good condition experienced a 9% increase, reaching an average price of 100,941 CZK per square meter. Rental prices followed a similar upward trend, rising to 328 CZK per square meter. House prices also saw an increase, rising by 7% throughout the year, ending at an average of 57,902 CZK per square meter. The report attributes these price hikes to improved economic conditions and lower interest rates, which have encouraged the middle class to return to the housing market.

In Prague, apartment prices in good condition saw moderate growth for most of the year, eventually reaching 134,696 CZK per square meter by the end of 2024. This represents a 5% increase quarter-on-quarter and an 8% increase year-on-year. The surge in demand, fueled by an increasing number of buyers, was a key driver behind the price growth. The market for family houses in the capital was divided into two categories: older houses requiring renovation on the outskirts and high-end villas. The average price for family houses in Prague reached 114,280 CZK per square meter, marking a 6% year-on-year increase.

The demand for homeownership that originated in Prague has now extended to the Central Bohemian Region. Interest in apartments in this region has increased significantly, with demand rising by two to five times, particularly in locations offering direct railway connections to Prague and travel times within an hour to the city center. Cities such as Kladno, Beroun, Neratovice, Roudnice nad Labem, Brandýs nad Labem, Lysá nad Labem, and Nymburk saw notable growth in demand. By the end of 2024, apartment prices in the region rose to 84,920 CZK per square meter, reflecting an 11% increase year-on-year and a 5% rise quarter-on-quarter. In contrast, the prices of family houses in the region remained stable at under 70,000 CZK per square meter.

A similar trend was observed in the South Moravian Region, particularly in Brno, where interest in property purchases tripled over the year. Apartment prices remained steady at around 95,000 CZK per square meter throughout the second half of 2024, showing a 16% increase year-on-year and a 13% increase compared to the full-year average. Family house prices in the region fluctuated throughout the year but eventually returned to their starting levels, with the average house priced at 56,822 CZK per square meter at the end of 2024.

Rental prices also increased across major cities. In Prague, rents averaged 401 CZK per square meter, peaking at 412 CZK in December. This represents a 10% year-on-year increase. The Central Bohemian towns experienced similar growth, with rents averaging 290 CZK per square meter and rising to 305 CZK in December. Areas near Prague or along major railway routes saw the most significant rental growth. In Brno and its surrounding areas, rental prices averaged 320 CZK per square meter, with increasing demand in satellite towns such as Tišnov, Kuřim, Blansko, and Vyškov.

Overall, the Czech real estate market saw steady growth in property values and rental rates in 2024, driven by increasing demand and improving economic conditions. As interest rates continue to decline and demand remains strong, further growth is anticipated in the coming year, particularly in well-connected suburban areas.

Source: EHS and CTK

DOUGLAS secures 46,200 sqm lease for distribution centre at CTPark Warsaw South

CTP has signed a 10-year lease agreement with DOUGLAS, the European leader in the omnichannel premium beauty segment, for 46,200 square meters of warehouse and office space at CTPark Warsaw South. The new facility will serve as DOUGLAS’ main distribution centre in Poland and the company’s third global logistics hub, supporting its omnichannel sales operations across Central Europe and the Baltic states.

DOUGLAS will fully occupy the WARS 01 building, which includes 1,317 square meters of office space and 44,940 square meters of warehouse area. This strategic location will enable the beauty retailer to store up to 8 million products at a time, capable of fully supplying 350 physical perfumeries. The facility will play a pivotal role in distributing products within Poland, as well as to Lithuania, Latvia, and Estonia, while also catering to other European markets with private label products.

Having entered the Polish market more than 24 years ago, DOUGLAS continues to expand its presence by investing in both physical store expansions and digital growth. The company’s investment in modern logistics infrastructure reflects its commitment to meeting growing customer expectations through efficient and sustainable supply chain solutions.

The decision to establish a distribution hub at CTPark Warsaw South was influenced by the park’s outstanding ESG credentials and its ability to provide tailored warehousing solutions. The DOUGLAS building is one of only ten warehouse properties in Poland to achieve the BREEAM Outstanding certification, the highest rating in sustainability standards.

The facility has been customized to meet DOUGLAS’ operational needs, incorporating features such as enhanced natural light penetration, advanced DALI lighting systems with additional sensors, and state-of-the-art fire protection standards. The site will be further equipped with security and monitoring systems, robotic automation, and a Smart Metering System to optimize utility consumption. To support sustainability goals, the facility will rely on heat pump technology for heating and cooling, while a 0.5 MWp photovoltaic system will be installed on the roof to enhance energy efficiency.

Piotr Flugel, Managing Director for Poland at CTP, expressed enthusiasm about the collaboration, stating: “We are pleased to welcome DOUGLAS to CTPark Warsaw South. This facility offers a strategic location, modern infrastructure, and leading ESG standards, making it an optimal environment for their central distribution centre. With a 10-year lease in place, we are committed to supporting DOUGLAS in achieving their supply chain objectives.”

Michal Niechaj, Supply Chain Director Corporate Brands & CEE Region at DOUGLAS, highlighted the strategic importance of the new facility, saying: “This distribution centre represents a significant milestone in our supply chain strategy. It will not only support our omnichannel delivery model across Central and Eastern Europe but also serve the broader European market by distributing our exclusive brands. This reinforces our commitment to operational excellence and customer satisfaction.”

Estonia: Ülemiste City Enhances Comfort and Efficiency with Elevator Data

Ülemiste City, the largest business campus in the Baltics, has achieved a groundbreaking milestone in smart building technology by using elevator data to optimize heating, ventilation, and air conditioning (HVAC) systems. The innovative collaboration between KONE, Mainor Ülemiste, and R8 Technologies has resulted in up to a 36% reduction in energy consumption and emissions, setting a new benchmark for sustainable commercial real estate operations.

Managing indoor climate in large commercial buildings has always been a challenge, with property managers striving to balance tenant comfort with energy efficiency. Recognizing this challenge, the partners turned to an unconventional data source—elevator movement patterns—to gain valuable insights into building occupancy and adjust energy usage accordingly.

KONE, a global leader in elevator and escalator manufacturing, had already been utilizing 24/7 Connect technology to collect data for predictive maintenance and improved people flow within buildings. This prompted the partners to explore whether the same data could be leveraged to enhance energy efficiency across the campus. According to Rene Klesment, CTO of Mainor Ülemiste, the idea was simple yet effective: if elevator data could provide insights into how and when people move within the building, HVAC systems could automatically adjust heating and cooling levels to match occupancy trends.

Ülemiste City served as the ideal testing ground for this innovative approach. The partners selected an eight-year-old, 13-floor building with six elevators to serve as a pilot project, using it as a real-life testbed to experiment with future technologies. HVAC systems, which account for up to 70% of a building’s total energy consumption, were identified as a critical area for potential efficiency improvements.

R8 Technologies, a fast-growing technology company specializing in AI-driven building management solutions, played a pivotal role in the project by integrating their proprietary AI software, R8 Jenny, into the building’s automation systems. The AI solution analyzed elevator usage data and created adaptive occupancy-based climate control strategies. As explained by Siim Täkker, CEO of R8 Technologies, the system was able to predict behavioral patterns, such as a typical 90% office vacancy by 5 PM on Fridays, while also dynamically adjusting for unusual events like office parties or public holidays.

Täkker emphasized the efficiency of the solution, stating that no additional sensors or hardware installations were required. Instead, existing elevator data was seamlessly integrated into the building’s digital infrastructure, maximizing resource utilization and minimizing investment costs. “We didn’t have to add new sensors or cameras because we could leverage elevators as an information source. It was a great way to maximize the use of existing infrastructure,” he said.

The results of the pilot project were remarkable. The test building saw a significant reduction in both energy consumption and carbon emissions, with projected annual savings of up to €50,000 and 140 tons of CO2 emissions. Importantly, the optimization process was carried out without disrupting tenant comfort—there were no complaints from occupants regarding temperature fluctuations, indicating a seamless transition to a smarter energy management system.

The success of the Ülemiste City project highlights the potential for similar solutions to be applied across other commercial properties worldwide. Tero Hottinen, Vice President and Head of Strategic Partnerships at KONE, noted that this project exemplifies how elevator data can go beyond its traditional applications. “We were able to take our elevator data ‘out of the shaft’ so to speak, combine it with advanced algorithms, and use it as a secret sauce to optimize HVAC systems,” he said. He also expressed optimism about expanding the concept to other operational areas such as maintenance scheduling and janitorial services, further enhancing building efficiency and sustainability.

Looking to the future, the success of this collaboration demonstrates how smart technology can create a more sustainable built environment while maintaining high levels of tenant satisfaction. The Ülemiste City initiative serves as a blueprint for the future of commercial real estate, where data-driven solutions are not only improving operational efficiency but also contributing to broader sustainability goals.

As businesses worldwide continue to focus on reducing their environmental footprint, the Ülemiste City project stands as a testament to the power of innovation, collaboration, and the intelligent use of data to create better, more efficient spaces for people to work and thrive.

Prague Office Market Overview: Q4 2024 and Full-Year Trends

“Prague office market finished the year 2024 with record levels of take-up but with minimum new office development planned for the coming years. As a result, the vacancy rate started to drop to the current level reaching 7.3%. Such a number is still considered as healthy; however, large office transactions tend to face difficulties in finding a sufficient number of comparable options for relocations. The limited pipeline of new speculative developments will amplify the imbalance between supply and demand. The office rents have stabilized in the past year but with the limited options for relocations will face further pressure to grow in the coming months. The office market will slowly turn into the Landlord-favourable market,” Comments Jana Vlková, Head of Office Agency & Workplace Advisory, Czech Republic, Colliers.

At the close of the fourth quarter of 2024, the total office stock in Prague expanded to 3.96 million square meters, with the completion of just one project—the refurbishment of 100 Yards in Prague 1, adding 3,300 square meters of modern office space. Throughout the year, Prague saw 72,800 square meters of new office supply across eight completed projects, aligning with market expectations. However, projections for 2025 indicate a significant slowdown, with only 24,600 square meters of new supply expected.

For the second consecutive quarter, no new office construction or refurbishment projects were initiated, underscoring a cautious market sentiment. As of the end of Q4 2024, the total volume of office space under construction stood at 164,300 square meters, with a significant portion already pre-leased. The Smíchov City project in Prague 5 accounts for the largest share of the ongoing developments.

The composition of Prague’s office stock remains dominated by Class A buildings, which constitute 74% of the total market, while AAA-rated spaces represent 21%.

Office Leasing Activity

Leasing activity in Q4 2024 was robust, with total gross take-up reaching 185,100 square meters, reflecting an 11% increase year-on-year and a 39% jump compared to Q3 2024. New leases and expansions accounted for 38% of the take-up, while pre-leases contributed 12%. Renegotiations made up the largest share at 48%, with subleases comprising the remaining 2%.

Among the most active districts, Prague 4 recorded the highest demand, accounting for 30% of gross take-up, followed by Prague 1 (16%) and Prague 8 (15%). In terms of industry activity, technology firms led the demand with 18% of total leasing activity, followed closely by the financial and energy sectors, each contributing 14%.

Looking at the broader picture for 2024, total gross take-up reached 636,700 square meters, surpassing 2022 levels by 18% and exceeding the previous year’s total by 21%. New leases and expansions accounted for 33% of annual take-up, pre-leases for 16%, and subleases for 2%, with renegotiations comprising 49%.

Prague 4 and Prague 5 emerged as the most active office districts in 2024, each accounting for 25% of total leasing activity, followed by Prague 8 with 17%. Financial firms dominated demand, representing 25% of the total annual take-up, with technology firms contributing 18% and professional services firms 8%.

Office Vacancy and Absorption

The Prague office market demonstrated strong absorption levels in Q4 2024, with a positive net absorption of 31,100 square meters, indicating a significant increase in office occupancy. The overall vacancy rate decreased to 7.3%, down 66 basis points from the previous quarter but reflecting a 24 basis point increase year-on-year.

The total volume of vacant modern office space in Prague dropped to 290,700 square meters. The lowest vacancy rates were observed in Prague 2 (2.6%) and Prague 8 (3.6%), while the highest vacancies were recorded in Prague 3 (19.0%) and Prague 10 (12.0%).

Office Rents

Prime office rents in Prague saw a marginal increase during Q4 2024. In the city center, prime rents ranged between €28.50 and €29.50 per square meter per month. In the inner city districts, rents remained stable between €18.50 and €19.50, while in outer city locations, they ranged from €15.50 to €16.50 per square meter per month.

Despite the modest increase in prime rents, asking rents across Prague’s established office hubs have continued to rise. This trend is driven by several factors, including sustained demand, rising construction costs, and a limited supply of high-quality office space, leading to increased competition in sought-after locations.

As Prague enters 2025, market dynamics are expected to be shaped by the interplay of economic conditions, construction cost pressures, and evolving tenant preferences. The slowdown in new supply may create opportunities for landlords to leverage rising demand, while tenants may face a more competitive leasing environment.

Source: Prague Research Forum

AXA IM Alts raises EUR 4 billion for global commercial real estate debt platform in 2024

AXA IM Alts, the alternative investment arm of AXA Investment Managers, announced that it successfully raised over EUR 4 billion for its global commercial real estate (CRE) debt platform in 2024. This record-breaking capital raise underscores the firm’s position as the largest European CRE debt platform, with more than EUR 26 billion invested in the asset class.

The substantial capital influx reflects heightened investor interest in real estate debt strategies, particularly amid a landscape of rising interest rates and the retreat of traditional banking institutions from certain lending markets. Investors are increasingly attracted to the attractive risk-adjusted returns that CRE debt investments can offer, especially in a higher-for-longer interest rate environment.

In addition to the impressive fundraising, AXA IM Alts deployed approximately EUR 3 billion across 60 transactions within the same period. These investments spanned various geographies and sectors, highlighting the firm’s diversified approach and deep market expertise.

AXA IM Alts’ CRE debt platform has been a pioneer in the European market since its inception over two decades ago. The firm’s extensive experience and established track record have been pivotal in attracting a broad base of global investors seeking exposure to real estate debt opportunities.

The success of the 2024 capital raise aligns with AXA IM Alts’ strategic objective to expand its global footprint in the CRE debt sector. The firm continues to leverage its scale, experience, and market access to identify and capitalize on compelling investment opportunities, aiming to deliver attractive risk-adjusted returns for its investors.

As the CRE debt market evolves, AXA IM Alts remains committed to maintaining its leadership position by adapting to market dynamics and meeting the diverse needs of its investor base. The firm’s proactive approach and robust platform position it well to navigate the complexities of the global real estate debt landscape.

For more detailed information on AXA IM Alts’ CRE debt strategies and investment activities, interested parties are encouraged to visit the firm’s official website.

Kinstellar advises Genesis Growth Equity Fund I on acquisition of majority stake in LLP Group

Kinstellar has successfully advised Genesis Growth Equity Fund I (GGEF I) on acquiring a majority stake in LLP Group, a prominent business software consultancy specializing in financial and enterprise asset management solutions.

LLP Group, established in 1992 in the Czech Republic, has built a strong reputation over more than three decades. The company resells and implements Infor SunSystems financial management software, HxGN EAM (an enterprise asset management suite), and systems@work’s professional services automation and expense management software. With a team of over 100 professionals, LLP Group operates across eight offices in Europe and North America, serving multinational clients in more than 90 countries.

The acquisition aligns with GGEF I’s strategy to invest in small and medium-sized enterprises with significant growth potential in Central and Eastern Europe. This transaction marks the eleventh investment by GGEF I, underscoring its commitment to supporting companies poised for expansion.

As part of the deal, LLP Group’s founder and majority owner, Adam Bager, will retire to pursue other interests. The remaining three shareholders will retain a minority stake and continue to actively manage the company, with Tim Smulders stepping into the role of Chief Executive Officer.

Kinstellar provided comprehensive legal counsel to Genesis Growth throughout the acquisition process, ensuring a smooth transaction. The advisory team was led by Kinstellar’s experts, supported by Brouxel & Rabia, with Grant Thornton serving as financial and tax advisor.

This strategic investment aims to accelerate LLP Group’s growth and expand its offerings globally, leveraging its established expertise and market presence.

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