EBRD achieves record EUR 26.8 billion in financial mobilisation in 2024

The European Bank for Reconstruction and Development (EBRD) has significantly increased its private-sector mobilisation efforts in 2024, reaching an all-time high of €26.8 billion in total financial mobilisation. This achievement underscores the Bank’s commitment to supporting clients and economies in meeting their investment needs across its regions of operation.

The EBRD’s mobilisation efforts comprised both direct and indirect financing. Direct mobilisation reached a record €4.82 billion, reflecting the Bank’s intensified collaboration with commercial banks, insurance firms, and institutional investors. Indirect mobilisation, which includes public-sector partnerships and syndicated lending, accounted for €21.97 billion. These figures highlight the EBRD’s strategic approach to leveraging external capital to enhance the economic resilience of its member countries.

For over three decades, the EBRD has played a crucial role in facilitating the transition of economies towards open, market-oriented systems. Mobilisation of private-sector funds has been a key component of its operations, enabling the Bank to expand financing capabilities and contribute to sustainable economic growth.

Christian Kleboth, Head of Debt Mobilisation at the EBRD, emphasized the importance of collaboration in achieving these results. “Through intensified efforts and strong cooperation with our commercial banking and investor partners, we were able to significantly boost our direct mobilisation delivery in 2024,” Kleboth said. “This achievement ensures that nearly €27 billion in additional financing is flowing to our clients and economies, helping to drive positive change. Moving forward, we will continue to introduce innovative mobilisation products that attract institutional investors and enhance co-financing opportunities.”

The EBRD’s efforts align with the broader objective of multilateral development banks (MDBs) to attract private investment for development projects worldwide. The need for private capital has become particularly pressing in climate finance, where the funding gap is expected to require additional investments of up to US$ 2.8 trillion (€2.6 trillion) annually by 2030 to meet global climate goals.

At the COP29 climate conference in Baku, MDBs collectively projected that their annual private climate mobilisation efforts will reach US$ 130 billion (€120.2 billion) by 2030. The EBRD has positioned itself as a leader in this space, having mobilised US$ 26.7 billion (€24.7 billion) in 2023 alone, reinforcing its pivotal role in driving climate-focused investments.

Looking ahead, the EBRD remains committed to expanding its mobilisation initiatives to further support economic development, climate action, and private-sector growth in its target regions.

Photo: Christian Kleboth, EBRD Head of Debt Mobilisation

Skanska to construct office and parking complex in Skövde, Sweden for approx. EUR 29.9 million

Skanska has secured a contract with municipal company Kreativa Hus Skövde AB to construct a state-of-the-art office building and an adjacent parking garage in central Skövde, Sweden. The project, valued at approximately SEK 340 million (approximately EUR 29.9 million), will be included in Skanska’s order bookings for Sweden in the first quarter of 2025.

The planned seven-story office building will encompass a gross area of 11,100 square meters and feature modern, flexible office spaces designed for efficiency. At the heart of the building will be an atrium, envisioned as a central gathering place that fosters collaboration and interaction among occupants. Additionally, the project will incorporate an innovative energy-sharing solution that allows the newly constructed building to exchange electricity and cooling with neighboring properties, enhancing overall energy efficiency. The development will also see the transformation of an existing parking lot into a vibrant public square, further enhancing the urban landscape.

The accompanying four-story parking garage will span a gross area of 4,500 square meters and will be integrated with the office building. To align with Skanska’s sustainability goals, the construction will utilize climate-reduced concrete for the structural frame, while the use of steel will be minimized to reduce the project’s environmental impact.

Construction is set to commence soon, with completion expected in the first half of 2027.

Ares Management secures EUR 30 billion for European direct lending strategy

Ares Management Corporation a global alternative investment firm, has successfully closed its sixth European direct lending fund, Ares Capital Europe VI (ACE VI), surpassing its fundraising target and reaching its hard cap of €17.1 billion. This milestone makes ACE VI the largest institutional direct lending fund globally based on limited partner (LP) equity commitments.

The final fund size represents a substantial 53% increase from Ares’ previous fund, Ares Capital Europe V, which closed in 2021 at €11.1 billion. With related vehicles and anticipated leverage, Ares’ European Direct Lending strategy now boasts approximately €30 billion in available capital. Combined with its recent $33.6 billion capital raise for Senior Direct Lending Fund III (SDL III), Ares has secured an impressive $64.5 billion across both strategies, reinforcing its position as a global market leader in private credit.

Blair Jacobson, Partner and Co-Head of European Credit at Ares, highlighted the firm’s growing influence in the European lending market, stating, “The final closing of ACE VI underscores the strength of Ares’ European direct lending platform and the demand for flexible capital solutions. We are grateful to our investors for their continued trust in our approach.”

Michael Dennis, also a Partner and Co-Head of European Credit, emphasized the firm’s pan-European reach and expertise. “Our local presence across key European markets, combined with our deep sector knowledge and longstanding sponsor relationships, enables us to identify attractive investment opportunities with high-quality borrowers,” he said.

ACE VI is designed to provide flexible financing solutions to market-leading European companies across defensive sectors, targeting businesses with EBITDA exceeding €10 million. The fund primarily focuses on senior-secured positions to ensure capital preservation and reduce volatility. Since its launch, ACE VI has already committed approximately €6.4 billion across more than 50 investments.

Ares’ European Direct Lending strategy is supported by a robust team of approximately 90 investment professionals operating from key financial hubs, including London, Paris, Frankfurt, Stockholm, Amsterdam, and Madrid. As of September 30, 2024, the division managed over $74 billion in assets and has executed nearly 380 transactions totaling more than €70 billion since inception.

Looking ahead, Matt Theodorakis, Partner and Co-Head of European Direct Lending, expressed confidence in the firm’s ability to capitalize on emerging opportunities. “Our platform’s scale, experience, and innovative approach allow us to navigate market complexities while maintaining disciplined capital deployment and delivering value to our investors,” he noted.

The latest fundraising achievement further cements Ares’ reputation as a powerhouse in the global direct lending space, with its continued expansion reflecting strong investor appetite and growing demand for private credit solutions in Europe.

Hungary’s average gross earnings reach HUF 695,100 in November 2024, up 11.9% YoY

In November 2024, full-time employees in Hungary saw their average gross earnings reach HUF 695,100, reflecting an 11.9% increase compared to the same period in 2023. Meanwhile, average net earnings, including tax benefits, stood at HUF 478,000, up by 11.8% year-on-year, according to recent data. Adjusted for inflation, real earnings increased by 7.9%, driven by a 3.7% rise in consumer prices.

Regular gross earnings, which exclude premiums and one-off bonuses, were recorded at HUF 613,700—also reflecting an 11.9% growth over the previous year. Sector-specific figures show that the business sector reported regular gross earnings of HUF 609,500 (up 11.3%), the budgetary sector HUF 613,000 (up 13.7%), and the non-profit sector HUF 657,100 (up 11.9%).

The median gross earnings for the month reached HUF 550,800, surpassing the previous year’s level by 12.5%, while median net earnings, including tax benefits, rose by 13.3% to HUF 383,400.

For the period from January to November 2024, average gross earnings stood at HUF 639,500, while net earnings excluding tax benefits were HUF 425,200, and HUF 440,200 with tax benefits included. Compared to the same period in 2023, average gross earnings and net earnings (excluding tax benefits) increased by 13.5%, and net earnings (including tax benefits) rose by 13.3%.

The consistent growth in earnings reflects the country’s economic resilience and wage growth trends, with increases observed across various sectors.

CBRE Romania brokers major sale of Rus Savitar factory to global furniture giant UE Furniture

CBRE Romania has successfully facilitated a major transaction in the furniture production sector, overseeing the sale of a factory owned by Rus Savitar to UE Furniture. The transaction includes a total area of 120,000 square meters of land and 60,000 square meters of buildings, marking a significant move in Romania’s furniture manufacturing landscape.

Rus Savitar, a family-owned business founded in 1994, has grown into one of Romania’s largest furniture and chipboard manufacturers. Over more than three decades, the company has established itself as a key player in the industry. According to Mădălin Aresmerițoaie, Senior Consultant for Industrial & Logistics at CBRE Romania, the deal not only preserves local traditions in furniture production but also brings significant economic benefits to the community.

UE Furniture, a global leader in the production of chairs, armchairs, and sofas, was the first Chinese company in its sector to be listed on the stock exchange. With over 20 years of experience in the industry, the acquisition of the factory in Dudeștii Noi marks its second investment in Romania, following the establishment of a production facility in Orăștie several years ago.

Cristian Rusu, owner and General Manager of Rus Savitar, highlighted the strategic focus of the company in recent years, emphasizing efforts to eliminate debts and achieve profitability. He expressed confidence that the partnership with UE Furniture will contribute to the company’s continued growth and provide new opportunities for its employees.

CBRE Romania played a pivotal role in the transaction by representing Rus Savitar and ensuring that both parties reached a mutually beneficial agreement. The consultancy firm’s expertise was instrumental in navigating the complexities of the deal and finding innovative solutions to facilitate the process.

Photo: Mădălin Aresmerițoaie, Senior Consultant for Industrial & Logistics at CBRE Romania

IC Immobilien Gruppe secures Hannover Leasing property management mandate

IC Immobilien Gruppe has been entrusted with the commercial, technical, and accounting property management of a substantial commercial real estate portfolio, comprising approximately 154,000 square meters of leasable space. The mandate, awarded by Hannover Leasing, covers a diverse mix of retail, office, and hotel properties located across northern, western, and southern Germany. The official commencement date for the contract was January 1, 2025.

Sabine Giesen-Kirchhofer, Managing Director of IC Property Management GmbH, expressed satisfaction with the expanded collaboration, stating, “We are delighted to strengthen our partnership with Hannover Leasing. This new mandate highlights the trust in our capabilities and demonstrates our ability to efficiently take on complex, large-scale portfolios across Germany, even within tight timeframes.”

The portfolio consists of ten properties strategically positioned in key regions of Germany, enhancing IC Immobilien Gruppe’s growing presence in the commercial property management sector. The contract reaffirms the company’s expertise in handling diverse property types and its commitment to delivering comprehensive management solutions.

Photo: Sabine Giesen-Kirchhofer, Managing Director of IC Property Management GmbH

Lagardere Travel Retail expands Costa Coffee in Poland with new openings and upgrades

Lagardere Travel Retail has announced ambitious plans for Costa Coffee in Poland, aiming to open six new cafes and renovate 24 existing locations in 2025. The expansion strategy will focus on prime locations, including shopping centers and key travel hubs such as airports and railway stations. The first new outlet of the year has already been launched at Wola Park shopping mall in Warsaw.

Maciej Gajkowski, Managing Director of Foodservice at Lagardere Travel Retail in Poland, emphasized the company’s commitment to enhancing the Costa Coffee experience in the country. “Since acquiring Costa Coffee in Poland, we have implemented numerous changes to drive the brand in a new direction. Our focus is on expanding the network by selecting prime locations and modernizing existing cafes to align with contemporary trends and customer preferences. High-traffic areas such as shopping malls and travel hubs are key to our growth strategy, enabling us to offer a seamless coffee experience to a wide customer base,” said Gajkowski.

The 24 cafes scheduled for renovation will be transformed in line with Costa Coffee’s updated visual identity and design standards. Patrons will experience the refreshed interiors at popular locations such as Świętokrzyska Street in Warsaw, the Main Market Square in Krakow, and Wrocław Railway Station.

In 2024, Costa Coffee expanded its footprint in Poland with the addition of three new locations—at Modlin Airport, Galeria Katowicka, and the Gdańsk Railway Station. Simultaneously, ten existing cafes underwent significant refurbishments, including those at Złote Tarasy in Warsaw, Warszawa Centralna Railway Station, Manufaktura shopping center in Łódź, and the Silesia City Center in Katowice.

Lagardere Travel Retail operates across three core sectors—Travel Essentials, Duty-Free & Fashion, and Foodservice. The company manages a network of over 5,000 stores in airports, railway stations, and other licensed spaces across 42 countries and regions, bringing world-class retail experiences to travelers worldwide.

The planned expansion and upgrades in 2025 highlight Lagardere Travel Retail’s ongoing investment in Poland’s thriving coffee culture and its commitment to providing top-tier service and ambiance to Costa Coffee patrons.

Source: Lagardere Travel Retail and ISBnews

Czech Parliament approves higher thresholds for small-scale contracts without tendering process

The Czech Parliament has approved an amendment to increase the financial thresholds for small-scale public contracts that can be awarded without a formal procurement procedure. Under the new rules, the threshold for supplies and services will rise from CZK 2 million to CZK 3 million, while for construction works, the limit will increase from CZK 6 million to CZK 9 million. The amendment, aimed at ensuring fair competition between European Union firms and companies from outside the EU, was recommended by the House Economic Committee as a response to rising costs.

Minister for Regional Development Petr Kulhánek (STAN) supported the increase, which is expected to exempt approximately one-third of public contracts from the procurement process. Additionally, lawmakers approved raising the threshold for mandatory contract publication from CZK 500,000 to CZK 1 million, a move intended to simplify procedures for smaller contracting authorities, including municipalities.

“The existing limits have not been adjusted for years, and given inflation, this increase is fully justified and anticipated by contracting authorities,” Minister Kulhánek stated. The decision was reached after three voting attempts, with the final approval passing by a margin of just two votes. Previous votes failed due to opposition from MPs Rudolf Salvetr (ODS) and Pavel Bělobrádek (KDU-ČSL), who questioned the proposal.

Efforts to enhance transparency in small-scale public procurement were not as successful. A proposal by Pirate Party leader Jakub Michálek, which sought to introduce a requirement for contracting authorities to disclose the selection process for contracts exceeding CZK 1 million, was rejected. The initiative, co-signed by coalition members from STAN, KDU-ČSL, and TOP 09, aimed to increase public scrutiny over spending. Minister Kulhánek expressed disappointment over the rejection, emphasizing the need for public oversight in the use of taxpayer funds.

The approved amendment, which tightens regulations on large acquisitions and public contracts involving non-EU companies, introduces closer cooperation between the Ministry of Industry and the Office for the Protection of Competition. The measure aims to enhance oversight and information sharing regarding foreign companies participating in Czech public tenders.

The legislative changes align with the European Union’s efforts to address concerns over unfair competition from Chinese firms, which have been accused of benefitting from state subsidies that distort market dynamics. The EU’s regulatory framework, introduced in 2021, aims to level the playing field by scrutinizing financial contributions provided by non-EU governments to companies operating within the bloc. The regulation defines foreign subsidies as financial contributions from third countries that confer a competitive advantage on specific companies or sectors.

The Czech government emphasized that while EU member states are bound by strict public aid regulations, foreign subsidies previously remained largely unregulated, potentially giving non-EU firms an unfair advantage. The new amendment ensures that such subsidies are monitored and their impact on the Czech market is assessed to prevent market distortions.

With the approval of these changes, Czech authorities aim to balance regulatory efficiency with market fairness, supporting both domestic businesses and the broader European economic framework.

Source: CTK

Apartment prices in the Czech Republic rise by 2.3% in Q3 2024, continuing upward trend

Apartment prices in the Czech Republic increased by 2.3% quarter-on-quarter in the third quarter of 2024, reaching an average of CZK 104,100 per square meter. This marks the fourth consecutive quarter of rising prices, according to data from the Real Index by Deloitte, as reported by the Czech News Agency. The majority of regions experienced price hikes, with the most significant increases recorded in the Zlín, Pilsen, and Ústí regions. In contrast, the South Bohemian Region saw a notable decline in prices.

A total of nearly 4,000 apartments were sold across the country during the third quarter, approximately 3,000 fewer than in the previous quarter. According to Petr Hána, director of the real estate and construction department at Deloitte, the price growth reflects continued market recovery driven by falling interest rates, reduced inflation, and lower energy costs. “The trend of rising prices, which began with improved economic conditions, continues to hold steady,” Hána stated.

Regionally, the Zlín Region saw the highest year-on-year price growth at 14.6%, followed by an 11% increase in Pilsen and Ústí regions. On the other hand, the South Bohemian Region experienced a significant price decline of 14.4%, with the Liberec Region also recording a minor drop of 1.5%.

The capital city of Prague and the South Moravian Region remain the most expensive areas for property purchases. Apartment prices in Brno rose by 6.8%, reaching CZK 111,600 per square meter. In Prague, prices climbed by 4.5% to an average of CZK 137,900 per square meter, although the rate of increase has slowed compared to the previous quarter’s 5.7% growth.

Within Prague, the highest price surge was recorded in Prague 6, where prices jumped by 25% to CZK 159,700 per square meter. Prague 1, the city’s historical center, also saw a significant increase of 17.4%, making it the most expensive district with an average cost of CZK 202,900 per square meter. Meanwhile, prices in Prague 9 rose by 7.4%, driven by ongoing new development projects. However, declines were noted in Prague 8 and Prague 2, where prices fell by nearly 10% and 2%, respectively.

Hána emphasized that the sluggish construction of new apartments remains a critical issue in the Czech real estate market, contributing to rising prices and housing shortages. “Thousands fewer apartments are being built each year than the market demands, and unfortunately, there is no sign of improvement in the near future,” he warned.

In terms of sales distribution, the majority of transactions in the third quarter were for new developments, with 1,728 units sold, including 1,012 first-time sales. Additionally, 1,011 transactions were recorded for brick buildings, while 1,209 prefabricated apartments were sold. Despite the overall slowdown in transactions, demand for modern, well-located apartments remains high.

Source: Deloitte and CTK

Inflation in Slovakia drops to 2.8% in 2024, marking steepest decline in 25 Years

Inflation in Slovakia fell to an average of 2.8% in 2024, achieving the most significant year-on-year slowdown in the past 25 years. This marked a sharp decline from the double-digit inflation rates experienced in 2022 and 2023, which stood at 12.8% and 10.5%, respectively. The moderation in price growth was primarily driven by a slowdown in food price increases and minimal hikes in housing and energy costs, according to data released by the Statistical Office of the Slovak Republic.

Throughout 2024, the rise in consumer prices was predominantly influenced by food, though its annual increase did not exceed 3%, a stark contrast to the over 17% surge recorded in 2023. Meanwhile, housing and energy costs rose marginally by just 0.5%, compared to the more than 9% increase seen the previous year. Despite this overall easing, price hikes were noted in various service sectors, such as transport, hospitality, and alcoholic beverages with tobacco products.

The deceleration in inflation was consistent throughout the year, with monthly price increases staying below 4%. The Statistical Office plans to release a separate report detailing inflation trends for December 2024.

Key Drivers of Inflation in 2024

In 2024, inflationary pressures were felt across all 12 divisions of the consumer basket, though only the education sector recorded double-digit price growth of 10.5%. Other notable increases were seen in healthcare, alcoholic beverages, tobacco, and food service activities, where prices rose by more than 5%. The steepest year-on-year decline in price growth occurred in food and non-alcoholic beverages, which increased by an average of 2.5% in 2024, compared to 17.3% the previous year. Housing and energy, which make up nearly half of household expenditures in Slovakia, saw only minimal price changes.

Food remained the most significant contributor to inflation, with prices rising by 2.5% year-on-year. Increases were particularly evident in staple categories such as bread and cereals (+4%), vegetables and fruits (both over 3%), and oils and fats (+9%). On the other hand, dairy products such as milk, cheese, and eggs saw a slight price drop of 0.2%. Importantly, food price increases were substantially lower than those recorded in 2023, when some categories saw hikes of 15% to 23%.

Housing and energy prices had a dampening effect on inflation, increasing by only 0.5%. Components such as imputed rent fell by 0.8%, while solid fuel prices dropped by nearly 5%. Electricity and gas prices for households remained mostly unchanged from 2023 levels. However, price increases were recorded in waste collection fees (+15%) and other housing-related costs, such as rent and maintenance charges.

The hospitality sector also contributed to inflation, with restaurant and hotel prices rising by over 5%, driven largely by a 7.1% increase in restaurant and café prices. Alcoholic beverages and tobacco prices also rose due to adjustments in excise duties, resulting in increases of nearly 9% for spirits and 9.1% for tobacco products.

Sectoral Trends in 2024

In transportation, prices increased by 3.2%, making it the only sector where the inflation rate accelerated compared to 2023. The rise was driven primarily by a 16.5% jump in passenger transport fares, although fuel prices declined by 1.7% year-on-year.

Meanwhile, the education sector recorded the highest price growth at 10.5%, attributed to fee hikes across all levels of study, though its impact on overall inflation was limited due to its small share in household expenditures.

Outlook for Core and Net Inflation

Core and net inflation, which exclude volatile elements such as regulated prices and food costs, both stood at 2.6% for the year. Core inflation reflects the underlying price trend by excluding administrative measures such as tax changes, while net inflation provides a clearer picture of inflationary pressures by further excluding food prices.

The inflation slowdown in 2024 provides a more stable economic outlook for Slovakia, signaling the end of a period of rapid price increases and offering relief to households facing rising living costs in previous years.

Source: Statistical Office of the Slovak Republic

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