Art-Invest Real Estate acquires residential portfolio in Stockholm county

Art-Invest Real Estate has acquired three newly developed residential buildings in Barkarbystaden, Stockholm County, from Swedish developers Åke Sundvall and OBOS. The transaction was completed on behalf of one of Art-Invest’s institutional investment funds. The financial details of the transaction were not disclosed.

The acquired properties, completed in 2024, comprise approximately 10,000 square meters of residential space and include a total of 158 fully leased apartments. Among them is an LSS care home with six residential units. The assets carry the Nordic Swan Ecolabel (“Svanen”) and meet high technical standards.

Located next to the planned Barkarbystaden metro station, which is scheduled for completion in 2027, the properties are situated in one of Sweden’s most ambitious urban development zones. Barkarbystaden, located in the Municipality of Järfälla, is expected to expand to 14,000 residential units by 2032 and will be supported by metro and regional rail connections, aiming to become a key transit and residential hub for northwest Stockholm.

Art-Invest Real Estate opened its Stockholm office last year and previously acquired the Stockholm Quality Outlet in Barkarbystaden as its first investment in the area. This latest transaction marks the company’s first residential acquisition in Sweden.

Commenting on the acquisition, Johan Öhlund Lagerdahl, Head of Stockholm at Art-Invest Real Estate, noted that the company sees ongoing growth potential in the Swedish market. “I have seen Barkarbystaden evolve over the past two decades and am pleased that we have now completed our first residential deal here. We will continue to seek further opportunities across Sweden, with a focus on locations that offer strong prospects for long-term growth,” he said.

Martin Sundvall, CEO of Åke Sundvall AB, welcomed the transaction and noted that Art-Invest’s long-term investment strategy and established presence in the area made it a suitable buyer. “This residential sale is part of our Atlas project. We are confident that Art-Invest is well positioned to manage this strategically located asset,” he said.

Legal and tax advisory for Art-Invest Real Estate was provided by Setterwalls and K&L Gates. The sellers were represented by FHH Law and advised by HM Partners.

Europe Distribution Group leases 7,500 sqm at MLP Wrocław logistics park

Europe Distribution Group (EDG), a company involved in the production and distribution of cosmetics, bath products, detergents, and cleaning supplies, has signed a lease agreement for 7,500 sqm at the MLP Wrocław logistics park. The lease includes 7,300 sqm of warehouse space and 200 sqm dedicated to office and staff facilities. The transaction was facilitated by real estate advisory firm Sawitar Estate Broker.

Under the agreement with MLP Group, the facility is scheduled for completion at the beginning of next year, though EDG will be granted early access to the premises starting in June 2025. The decision to lease space at MLP Wrocław was based on operational requirements and location, with EDG citing the need for flexibility and a responsive logistics partner.

EDG was supported throughout the lease negotiation process by Sawitar Estate Broker. According to the advisor, the transaction was completed efficiently, and the selected facility met the client’s technical and logistical needs.

MLP Wrocław is a logistics complex located on a 13-hectare site in the Psie Pole district of Wrocław, approximately 14 km from the city center. The park comprises five warehouse buildings with a total area of 66,228 sqm, some of which hold BREEAM certification. The site is positioned near national road E67 and the S8 expressway, offering convenient access to major transport corridors.

MLP Group continues to manage the logistics park after construction under its build-and-hold strategy, providing long-term support to its tenants and offering tailored leasing solutions.

Syrena Real Estate acquires Zaułek Piękna office building in central Warsaw

Syrena Real Estate has acquired the Zaułek Piękna office building in Warsaw’s central Śródmieście district from Manova Partners, the company announced. The acquisition was partially financed by mBank and includes plans for a significant modernization of the property.

The building offers more than 8,100 square meters of office space and approximately 700 square meters of retail and service units. The largest tenant is international consulting firm Mazars, which occupies over 20 percent of the building. Other tenants include OC&C Strategy Consultants, institutional rental operator LivUp, and advisory firm Fidea.

According to Syrena Real Estate founder Witold Zatoński Kotomski, the company aims to reposition the building to meet contemporary standards for office space while contributing to the revitalization of the surrounding area. “Zaułek Piękna is a property with high repositioning potential. Our goal is to make it a flagship building in Śródmieście and redefine its commercial offering,” he said.

The transaction reflects ongoing trends in Warsaw’s office market, where a limited pipeline of new developments, rising construction and fit-out costs, and tenant preferences for central locations have increased demand for high-quality existing properties.

Manova Partners was advised in the transaction by Cushman & Wakefield, Greenberg Traurig, Sentient, and KPMG. Syrena Real Estate was supported by Wolf Theiss and REESCO, while Addleshaw Goddard advised mBank.

Commenting on the acquisition, Marcin Kocerba, Partner in the Capital Markets Department at Cushman & Wakefield, said the deal highlights the growing investment activity of local players. “With limited new development in Warsaw and a declining supply of well-located, high-quality buildings, properties like Zaułek Piękna are becoming increasingly attractive,” he noted.

The purchase aligns with Syrena Real Estate’s strategy of modernizing existing office properties. The firm previously completed the HOP office project on Chmielna Street (14,000 m²) and the Diuna complex in Mokotów (46,000 m²).

Syrena Real Estate, established in 2016, is a privately held Polish company specializing in direct real estate investment and asset management on behalf of international investors.

UniCredit Bank sees 5% rise in net profit in Czech Republic and Slovakia

UniCredit Bank, operating in both the Czech Republic and Slovakia, recorded a net profit of EUR 108 million (CZK 2.7 billion) in the first quarter of 2025. This marks a year-on-year increase of 4.9 percent, according to results published by the bank’s parent company. The positive performance aligns with broader profit growth trends among other banks in the region.

Customer deposits at UniCredit Bank rose by 11.9 percent over the past year, reaching CZK 633 billion, while the volume of loans granted grew by 4.7 percent to CZK 604 billion. The bank also reported a strong increase in net income from fees and commissions, which climbed by 25.9 percent to CZK 2 billion. However, net interest income declined by 4.5 percent to CZK 3.9 billion. Overall, the bank’s net operating profit stood at CZK 3.7 billion.

UniCredit Bank’s results were part of a broader trend of profit growth in the Czech banking sector. Česká spořitelna reported a first-quarter net profit of CZK 5.7 billion, a slight increase of 0.3 percent year-on-year. Komerční banka’s profit surged by 49.3 percent to CZK 4.2 billion, Moneta Money Bank saw a 14 percent rise to CZK 1.5 billion, and Raiffeisenbank posted a 21 percent increase to CZK 1.7 billion.

UniCredit Bank entered the Czech market in November 2007 following the merger of HVB Bank and Živnostenská banka. Today, the bank serves nearly 900,000 clients across the Czech Republic and Slovakia.

Czech unemployment held steady at 4.3% in April despite seasonal hiring

Unemployment in the Czech Republic remained at 4.3% in April, unchanged from March and marking the highest April unemployment rate since 2017. According to data released by the Labour Office of the Czech Republic, the figure represents a year-on-year increase of 0.6 percentage points. While analysts had expected a decline in unemployment due to the onset of seasonal work, weak performance in the industrial sector offset gains in agriculture and construction.

At the end of April, 318,540 people were registered as unemployed—3,600 fewer than in the previous month. During the same period, the number of registered job vacancies rose by 4,046 to reach 95,798. On average, there are currently 3.3 job seekers per vacancy.

Labour Office CEO Daniel Krištof commented that the labor market is becoming increasingly divided. He noted that while seasonal jobs are available, the mismatch between available positions and the qualifications of job seekers is growing. He emphasized the importance of continuous education and timely retraining to bridge this gap, stressing that upskilling should not be delayed until after job loss.

Vít Hradil, chief economist at Investika, explained that seasonal work typically lowers unemployment in spring, especially in agriculture and construction. However, this effect was largely absent this year due to weak demand in industry, which has been cutting back on employment.

Many of the newly unemployed individuals come from sectors such as retail, wholesale, metal manufacturing, vehicle production, education, public administration, and postal services. Meanwhile, employers are currently seeking building construction workers, warehouse staff, cooks, assembly line workers, truck and tractor drivers, and cleaners.

Jiří Pour, an economist at UniCredit Bank, noted that the average length of unemployment is increasing. The proportion of short-term unemployed individuals—those out of work for a short duration—fell by three percentage points to 26% in April.

Regionally, the highest unemployment was recorded in the Ústí nad Labem Region at 6.6%, followed by the Moravian-Silesian Region at 6%. Prague reported the lowest unemployment rate at 3.1%, though it, along with the Karlovy Vary Region, was one of only two regions where unemployment ticked up slightly—by 0.1 percentage points.

Looking ahead, analysts expect the average annual unemployment rate to rise in 2025 compared to the 3.8% recorded last year. Miroslav Novák, chief analyst at Citfin, forecasted that unemployment will likely remain in the 4.3% to 4.5% range this year. He warned that large-scale layoffs in the manufacturing sector, particularly in response to U.S. tariffs and weakening demand, pose a continued risk.

Source: CTK and Labour Office of the Czech Republic

Hungary posts record budget deficit, government freezes some spending

Hungary recorded a historic budget deficit of over 2.9 trillion forints (approximately CZK 178 billion) between January and April 2025, marking the highest shortfall for this period on record. The growing cost of interest payments and pensions outpaced the rise in tax revenues, prompting the government to implement a freeze on parts of its budget spending, according to a report by Bloomberg.

In April alone, the deficit reached 376 billion forints. Cumulatively, the shortfall over the first four months of the year amounts to 71 percent of the annual deficit target set by the government, Reuters noted.

State Secretary at the Ministry of Economy, Kornél Kisgergely, stated that the freeze in spending demonstrates the flexibility of Hungary’s fiscal policy, though he did not specify which expenditures would be affected.

Prime Minister Viktor Orbán’s administration is aiming to reduce the budget deficit to 4 percent of GDP in 2025, down from 4.9 percent in the previous year. The government is relying on a projected economic recovery to meet this goal and bolster its position ahead of parliamentary elections scheduled for next year.

However, there are concerns from financial institutions about potential pre-election fiscal loosening. Credit rating agency S&P Global Ratings has warned of the risk that government spending could rise in the lead-up to elections. Kisgergely has dismissed such concerns, stating the Cabinet does not plan to increase spending for political purposes.

The government has forecast economic growth of 2.5 percent this year, but the independent Budget Council has questioned the optimism of this projection, especially after the economy contracted in the first quarter of 2025.

Source: CTK

Heavy drinking in Czech Republic concentrated among one-fifth of consumers

A disproportionate share of alcohol consumption in the Czech Republic is attributed to a small segment of the population, with experts stating that over two-thirds of all alcohol is consumed by just one-fifth of drinkers. This pattern of heavy drinking places a significant burden on public health and the economy, according to speakers at the “Together for a Healthier Czech Republic” seminar held in the Chamber of Deputies.

The health and social consequences of excessive alcohol use are estimated to cost the country tens of billions of Czech crowns each year. As many as 8,000 deaths annually are linked to alcohol-related causes. Despite collecting approximately CZK 15 billion per year from alcohol excise duties, experts warned that this revenue comes at a high human and financial cost.

Jindřich Vobořil, chair of the board at Randum Cirlistic Policy of Addiction Policy and former national anti-drug coordinator, emphasized the importance of prevention. He advocated for supporting moderate consumption and improving access to help for those with alcohol dependency. Instead of broad restrictions, he suggested targeted policies that promote less harmful alternatives, such as offering tax incentives or preferential marketing opportunities for low-alcohol beverages.

Other experts at the seminar supported regulatory changes, including limits on alcohol sales hours and locations, as well as taxation based on alcohol content. The initiative received backing from dozens of organizations, including the Czech office of the World Health Organization and the Czech Medical Chamber.

Michael Fanta of the Center of Economic and Market Analysis (CETA) stressed the need to reduce the availability of ultra-cheap alcoholic drinks by introducing a minimum price per unit of pure alcohol.

Dagmar Dzúrová from Charles University noted that alcohol-related premature deaths—especially among men—account for about six percent of all annual deaths. If these were avoided, the average life expectancy in the Czech Republic could rise by 1.5 years. In addition to liver disease, alcohol contributes to several cancers, cardiovascular conditions, and mental illnesses.

Despite these figures, alcohol consumption remains deeply normalized in Czech society, Dzúrová added. Children grow up in environments where drinking is seen as routine, and health concerns are often overlooked. Symbolic toasts for well-being stand in stark contrast to the actual long-term damage alcohol inflicts, even in small doses.

To address these issues, the initiative has put forward five main recommendations. These include revising alcohol taxation, banning alcohol advertising online and at sporting events, restricting advertising on TV and radio, and reducing alcohol sales at petrol stations, near schools, and in public buildings—particularly during late-night hours. The group also called for stricter enforcement of existing laws, such as prohibiting sales to minors, and the launch of new educational campaigns to raise awareness about alcohol’s health risks.

Source: CTK

Communion season offers brief relief as catering debt tops PLN 1 billion

The seasonal boom linked to spring communions and upcoming weddings has brought a short-term boost for many businesses in Poland’s catering and service sectors. However, the overall financial health of the industry remains fragile. According to data from the BIG InfoMonitor Debtors Register and the BIK database, while some improvement has been observed in how companies settle their debts, total outstanding liabilities in the food service industry still exceeded PLN 1 billion at the end of March 2025.

Increased demand for events such as communions has created a spike in orders for restaurants, catering services, photographers, and florists. Yet, these higher revenues are often offset by rising operational costs, such as energy, raw materials, and wages. As a result, the profits generated during this season offer only temporary relief rather than a path to lasting recovery.

Organizing a first communion celebration remains a significant expense for families. Costs can range from a few thousand to tens of thousands of zlotys, depending on the scale of the event. However, more households are opting for modest gatherings at home, reducing guest lists and preparing some of the food themselves. This shift is driven largely by rising prices. Over the past two to three years, the cost of services such as catering, photography, and floral arrangements has increased by 15–20 percent.

Despite this seasonal activity, the number of restaurants and catering businesses with overdue financial obligations continues to rise. As of March 2025, the total value of unpaid liabilities in the food-related services sector (PKD 56) stood at PLN 1.03 billion. This figure is only marginally higher than a year earlier but marks a 41 percent increase since 2021. Within the sector, restaurants (PKD 561) accounted for PLN 873 million in arrears—up 42 percent over five years—while catering companies (PKD 562) owed PLN 101.5 million, a 41 percent rise over the same period.

Though there has been a slight year-on-year improvement—some restaurant debt decreased and the catering segment saw a drop of over PLN 3 million in overdue liabilities—the overall trend suggests that many businesses are still struggling. Movable catering establishments recorded the highest increase in debt, while fixed restaurants showed modest recovery. The average debt per unreliable debtor has slightly decreased, suggesting a small reduction in financial risk across the industry.

The challenges are compounded by the fact that the number of active catering businesses has grown by nearly 25 percent in five years, while the number of indebted companies has grown at almost the same pace. According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, the sector’s expansion is not necessarily matched by stable profitability. Inflation and rising input costs have eroded margins, even as revenue increases.

Photographers, who also benefit from the communion season, are faring somewhat better. The popularity of professional photo shoots has increased, with costs for such services ranging from PLN 300 to several thousand. The photography industry (PKD 742) recorded a total of PLN 28.6 million in overdue liabilities at the end of March 2025—2.3 percent lower than the previous year. Over five years, however, debt in the sector rose by over 28 percent. The number of active photo companies has grown by more than 20 percent, but the number of indebted entities increased by just 6.7 percent, indicating relatively healthy financial management among newer businesses.

Florists also see increased demand during communion season. Professional floral arrangements for churches and reception venues have become common, with costs ranging from a few hundred to several thousand zlotys. At the end of March 2025, florists and related businesses (PKD 4776Z) had accumulated PLN 67.2 million in unpaid liabilities, up 8.7 percent from the previous year. The average debt per defaulting company stood at around PLN 61,000.

Late payments remain a persistent problem for the broader SME sector. According to a BIG InfoMonitor survey, nearly three-quarters of small and medium-sized enterprises in Poland report experiencing delays in receiving payments from their contractors. Paweł Szarkowski, President of BIG InfoMonitor, advises business owners to check potential partners in debtor registers to avoid being drawn into financial difficulties caused by others’ instability.

Consumers are also encouraged to take precautions. Before booking a venue or hiring a service provider for family events such as communions, it’s advisable to verify the financial standing of the company. This step can help prevent situations where a business closes unexpectedly, leaving customers without services and losing deposits.

Although the communion season brings a wave of orders, it does not signal a full recovery for the catering and service industries. Many companies remain heavily indebted and vulnerable to market fluctuations. The current boom is a much-needed opportunity to stabilize, but true recovery will require structural improvements and greater financial resilience.

Source: BIG InfoMonitor and BIK
Photo: Paweł Szarkowski, President of BIG InfoMonitor

Residential construction in Olomouc region dropped 40% in early 2025 despite national growth

Residential construction in the Olomouc region saw a sharp decline in the first quarter of 2025, with only 280 housing units breaking ground between January and March—a 40 percent drop compared to the same period last year, according to data from the Czech Statistical Office (ČSÚ). This decline contrasts with the national trend, where the number of housing starts increased by 2.9 percent year-on-year to a total of 8,297 apartments.

In the Olomouc region, most of the construction activity in the first quarter focused on new developments, accounting for 211 of the 280 residential units. Of these, 150 were intended for family homes and 61 were part of new apartment buildings. The remaining 69 apartments were started within completed or ongoing projects.

The slowdown comes after a strong year in 2024, when the region saw a rebound in housing activity. That year, 1,694 apartments began construction—an increase of 14.5 percent compared to 2023. Two years ago, 1,475 apartments were started, which itself was a 34.6 percent drop from the previous year, following a one-third increase in 2022.

In recent years, construction activity has concentrated in the city of Olomouc, supported by a number of major residential developments. Projects have included the transformation of former military barracks and industrial sites into residential complexes. Sochorova stavební developed over 300 apartments in the city center, while Link City Centrum NS delivered more than 200 units on the site of former malt houses and cold storage facilities. Redstone is also progressing with its Šantovka Living project, which is set to deliver 12 apartment buildings near the city center.

Looking ahead, several large-scale developments are in the pipeline. Stafos-Real plans to build a residential complex with 381 apartments in the Olomouc-Nové Sady district. Objekt Invest is preparing one of the largest projects, Green City, a new urban quarter expected to house over 5,100 residents in more than 2,000 apartments. This development will also feature 64 commercial spaces, projected to create around 80 jobs.

Despite a promising outlook for future developments, the slowdown in early 2025 reflects broader challenges in the construction sector, including permitting delays, financing constraints, and fluctuating market demand.

Source: ČSÚ and CTK

Atenor sells BakerStreet I in Budapest, cuts debt by over €50 million

Atenor has announced the sale of its BakerStreet I property in Budapest’s Újbuda district to an international investor. The fully leased office and retail development is one of five remaining Central European office assets marked for divestment under the company’s current strategic plan. The transaction will reduce Atenor’s consolidated debt by more than €50 million.

The sale is part of Atenor’s three-year strategy aimed at expanding its residential and mixed-use pipeline, decreasing its exposure to the office sector in Central Europe, and consolidating core office assets in key urban markets. Despite the challenging investment environment across the region, the company stated that the transaction may have a modest negative impact on its 2025 financial results.

In line with this strategic direction, Atenor is continuing the development of BakerStreet II, a neighbouring site. The company plans to submit a permit application later this year to convert the project into a residential development of approximately 20,420 square metres, which will include a small retail and office component. The project is intended to support the ongoing revitalisation of the Újbuda area while aligning with Atenor’s shift towards residential and mixed-use real estate.

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