Shining Stars of Real Estate: CIJ Awards Hungary 2024 Celebrates Excellence and Innovation

On November 25, 2024, the prestigious CIJ Awards Hungary celebrated its 19th edition at the Marriott Hotel in Budapest. This annual event, organized by CIJ EUROPE, honors excellence in the Hungarian real estate sector, recognizing outstanding projects, companies, and professionals.

The evening commenced with a welcome reception, providing attendees an opportunity to network and discuss industry trends. A gala dinner followed, featuring a curated menu that highlighted Hungarian culinary traditions. The awards ceremony was the highlight of the night, acknowledging achievements across various categories.

Winners:

Best Residential Development of the Year – Waterfront City by Biggeorge Property
Best Office Development of the Year – Millennium Gardens phase 2 by Trigránit
Best Warehouse Development of the Year – CTPark Szigetszentmiklós – SZG1 by CTP
Best Legacy (Reconstruction) Development of the Year – Liget Center by WING
Best Residential Buildup in Development of the Year – Marina City by CORDIA
Best Retail, Leisure & Hotel Upcoming Development of the Year – TRIBE Budapest Airport Hotel by WING
Best Warehouse Upcoming Development of the Year – CTPark Biatorbágy – BIA10ABC by CTP
Best Commercial Property Lease Transaction of the Year – Lufthansa Systems Budapest HQ (6,600 sqm) leased by Newmark VLK Hungary
Best Asset Management Company of the Year – CPI Property Group
Best Real Estate Property Fund Management of the Year – Biggeorge Fund Management
Best Property & Facility Management Company of the Year – CBRE
Best Law Firm of the Year – Schoenherr
Best Local Real Estate Agency of the Year – ESTON International
Best International Real Estate Agency of the Year – CBRE
Best Overall Developer of the Year – Biggeorge Property

The winners of the competition were selected in a three-stage voting jury committee process. These being a selected jury committee of 100+ recognised experts from the real estate, investment, architectural and construction industries.

The winners of each individual categories also advance as nominations for the Best of the Best CIJ HOF (Hall of Fame) Awards in 2025. The Hall of Fame Awards is the climax to the CIJ Awards series, pitting the winning projects and companies from around Central & Eastern Europe against each other to determine who the Best of the Best really are.

About CIJ EUROPE:
For almost 30 years, CIJ EUROPE has been reporting on new projects, properties, transactions and development initiatives, while also providing commentaries and detailed analyses of the market, statistics and information on the latest trends in Northern, Central and Eastern Europe and in the international real estate development community. It presents interviews with the people who shape the industry, influential politicians, and key officials who decide on planning and public tenders. It is an important and reliable source of information about the development, property and construction industry in CEE and Europe.

GTC reports €9.4 million net profit and €21.3 million EBIT in Q3 2024

GTC posted a consolidated net profit of €9.4 million attributable to shareholders in the third quarter of 2024, doubling its profit from €4.6 million in the same period last year. The company’s operating profit (EBIT) for the quarter also increased to €21.3 million, up from €19.8 million in Q3 2023, the company announced.

President Gyula Nagy highlighted the company’s strong performance, attributing it to continued positive trends from the first half of the year. “The third quarter reinforced GTC’s momentum, with improvements in revenue and FFO growth, alongside a significant expansion of our asset portfolio,” Nagy stated. He emphasized the strategic importance of acquiring a residential real estate portfolio in Germany, which adds 5,165 units to GTC’s portfolio. “This transaction diversifies our holdings and strengthens our position in the high-demand German housing market,” Nagy added.

Q3 2024 Performance Highlights

GTC’s rental revenue grew to €34.9 million in Q3 2024, up from €34.1 million a year earlier. Real estate service revenues also increased slightly to €11.9 million, compared to €11.7 million in Q3 2023.

For the first nine months of 2024, GTC reported consolidated net profit of €104.5 million, a significant rebound from a €7.4 million loss in the same period last year. Rental revenues for the period totaled €104.5 million, up from €99.5 million, while real estate service revenues reached €34.9 million. Adjusted EBITDA for the nine months rose to €84 million, compared to €78 million a year ago.

The company cited a 3% rise in rental revenues as a key driver of growth, supported by successful projects such as GTC X in Belgrade, Rose Hill Business Campus in Budapest, and Matrix C in Zagreb. Inflation-indexed rent adjustments also contributed to the increase.

Asset Value and Investment Activities

As of 30 September 2024, GTC’s total investment value, including fixed assets, amounted to €2.49 billion, up from €2.42 billion at the end of 2023. The rise was driven by €63 million in construction investments and the acquisition of new investment properties valued at €14 million.

The company’s net loan-to-value (LTV) ratio improved slightly to 48.8%, compared to 49.3% at the end of 2023. Total debt increased marginally to €1.297 billion, primarily due to long-term loan drawdowns of €88 million, offset by repayments of €52 million.

Challenges and Market Outlook

Despite the positive performance, GTC reported a €6 million loss from the revaluation of completed office properties in Poland, reflecting a decline in rental indices compared to 2023. However, improvements in the Polish office market were noted during Q3 2024, signaling a potential recovery.

Looking ahead, GTC remains focused on its core markets in Poland and Central and Eastern European capitals, with a diversified portfolio that now includes a growing residential segment.

Source: GTC and ISBnews

IMMO AG squeeze-out to be registered on 3 December 2024

The squeeze-out of minority shareholders in S IMMO AG, as resolved during the company’s Shareholders’ Meeting on 14 October 2024, is expected to be officially registered in the commercial register on 3 December 2024, subject to the approval of the Commercial Court of Vienna. The resolution was made under the Austrian Squeeze-Out Act (Gesellschafterausschlussgesetz).

Upon registration, the squeeze-out will become effective, transferring all shares held by minority shareholders to the main shareholder, IMMOFINANZ AG. From this date, trading in S IMMO AG shares on the Vienna Stock Exchange will cease. The final trading day is anticipated to be 2 December 2024.

Minority shareholders will receive a cash compensation of EUR 22.05 per share, as per the Shareholders’ Meeting resolution. Following the registration of the squeeze-out, S IMMO shares will be removed from the securities accounts of minority shareholders, and claim certificates will be issued to reflect their entitlement to compensation, including statutory interest. Payment of the cash compensation is expected to occur on 11 December 2024, coinciding with the removal of the claim certificates.

Custodian banks will provide detailed information to S IMMO shareholders regarding the payment process.

S IMMO AG has assured shareholders that any changes or delays to this timeline will be communicated promptly through a corporate news release. The company will also confirm the registration of the squeeze-out in the commercial register once finalized.

TP-Link secures nearly 14,000 sqm of logistics space in Düsseldorf

Integrated logistics real estate consultancy Logivest has successfully brokered a long-term lease for TP-Link, the global leader in networking and communications technology, in Düsseldorf Rath’s industrial park. The lease encompasses approximately 11,500 square metres of warehouse space and 2,300 square metres of office space. The property, located at Zum Gut Heiligendonk 16-20, is owned and managed by Prologis.

TP-Link, already established in Düsseldorf, sought a modern and high-quality facility to support its long-term growth and expansion plans. The new site, strategically positioned at the Düsseldorf Nord motorway junction, provides seamless connectivity and operational efficiency, making it an ideal choice for the company’s logistical operations.

The property’s location offers excellent access to Düsseldorf city centre and surrounding urban hubs. Additionally, the site features extensive open spaces and a large number of loading ramps, ensuring efficient handling and streamlined logistics processes. According to Kresimir Basic, Head of Industrial and Logistics Letting at Logivest NRW GmbH, the Düsseldorf Rath industrial park has evolved into one of the region’s top logistics destinations. “Its accessibility and infrastructure make it an ideal choice for businesses. Prologis identified this potential early and developed high-quality properties here that meet the demands of a logistics hotspot,” he said.

TP-Link is scheduled to move into the new facility at the beginning of next year, positioning itself for continued growth and operational excellence in the region. Logivest’s role in securing this deal highlights its expertise in facilitating high-value logistics real estate transactions in key industrial markets.

Jacek Furga: Housing loan market poised for record-breaking year

The Polish housing loan market is on track for a record year, with the value of loans potentially reaching PLN 85 billion in 2024, according to Jacek Furga, President of AMRON. This marks a significant increase from PLN 65.3 billion recorded in the first quarter of the year. The total number of loans granted is expected to surpass 205,000, up from nearly 156,000 in the first three quarters.

“Results for the third quarter show stabilization, with a modest 1% rise in the number of loans granted compared to the previous quarter,” Furga said during a teleconference. “However, compared to the same period in 2023, which saw the introduction of the ‘Safe Credit 2%’ program, this represents a 12.6% increase, demonstrating that the market can thrive even without government support.”

Furga estimates the year will close with approximately 205,000 loans issued, comparable to figures from 2020, a pandemic year. “This is a significant leap from the crisis year of 2022, which recorded only 126,000 loans,” he noted.

Q3 Loan Trends and Market Dynamics

According to the AMRON-SARFiN report, banks granted 45,897 new housing loans in the third quarter of 2024, reflecting a 12.63% quarter-on-quarter rise and a modest 1.02% increase year-on-year.

The total value of loans granted in Q3 reached PLN 19.32 billion, up by 1.03% quarter-on-quarter and a remarkable 22.92% year-on-year. This growth was driven by a steady increase in the average loan value, which has been climbing consistently over the past several quarters.

“The average loan value continues to stabilize, with a slight 1% quarter-on-quarter increase and a 22% rise year-on-year. This reflects the sustained demand for housing loans in Poland,” Furga explained.

2024 Outlook: A Record in Sight

Furga expressed optimism about the year-end results. “We anticipate at least PLN 83-84 billion in new loans, but there is a strong possibility of surpassing the previous record of PLN 85 billion set in 2021,” he said.

The market’s impressive performance signals a robust recovery and growing confidence among borrowers, even as the sector faces challenges like fluctuating interest rates and economic uncertainty.

Source: AMRON and ISBnews

Českomoravská Nemovitostní acquires full ownership of Churchill Square office complex

Investment group Českomoravská Nemovitostní (ČMN) has solidified its presence in Prague’s premium office market, becoming the 100% owner of the Churchill Square office complex. Located near Prague’s Main Railway Station, the property boasts a total market value exceeding CZK 4 billion.

ČMN completed the acquisition in November 2024 by purchasing the remaining 25% stake from Corporate Finance House Group for CZK 1 billion. This transaction marks the conclusion of an agreement originally established in 2020 when the two entities jointly acquired the complex from Penta Real Estate. ČMN had already increased its stake in December 2023, and this latest purchase secures its full ownership.

Churchill Square, awarded the Best of Realty in 2019, offers 33,000 square meters of state-of-the-art office space with capacity for 3,000 occupants. With an impressive 98% occupancy rate—well above the Prague office market average—the complex has attracted major tenants, including Fortuna and Deloitte.

The building’s LEED Gold certification further underscores its appeal, meeting the growing demand for sustainable, high-quality office spaces in Prague.

“This unique transaction during the COVID-19 pandemic highlights our ability to identify and invest in premium office spaces in Prague,” said Josef Eim, Vice Chairman of the Board at ČMN. “The Prague office market continues to see increasing demand for modern, sustainable buildings that align with the highest tenant requirements. These are precisely the properties we aim to include in our portfolio.”

ČMN is emerging as a significant player in Prague’s commercial real estate sector. Alongside Churchill Square, its portfolio includes notable properties such as the Blox, City West C1 and C2, Václavské náměstí 62, and the Crystal office buildings. The group’s commitment to high-occupancy, premium spaces reflects its strategic focus on stability and long-term growth.

By completing the Churchill Square acquisition, ČMN not only consolidates its position in Prague’s competitive office market but also reinforces its reputation as a leader in managing and investing in top-tier commercial real estate.

KCAP wins JTRE competition for iconic Bratislava skyscrapers

The Bratislava skyline is set to be transformed as renowned Dutch architectural studio KCAP emerges victorious in JTRE’s international urban-architectural competition for the Eurovea City Concept Design. KCAP’s innovative vision for two striking skyscrapers was selected by an expert jury, surpassing entries from globally acclaimed studios, including Delugan Meissl Associated Architects, Dominique Perrault Architecte, Gensler, and AE7 & GFI.

KCAP’s winning design features two slender towers, standing 260 meters and 184 meters tall, that reimagine traditional high-rise architecture. Instead of monolithic structures, the towers are envisioned as a cluster of elegant, tapering volumes with distinctive stepped crowns and panoramic windows, forming a dynamic addition to Bratislava’s downtown. The development will complement the existing Eurovea Tower (168m), creating a sophisticated vertical cluster that adheres to Bratislava’s Urban Study of Height Zoning and adds a contemporary vibrancy to the city’s silhouette.

The expert jury, chaired by Michal Sedláček, professor and former chief architect of Brno, praised KCAP’s design for its innovative approach, aesthetic harmony, and commitment to sustainability. The proposal integrates the towers seamlessly into Bratislava’s urban fabric while enhancing its visual identity and architectural prestige.

“The winning design stood out for its aesthetic and functional qualities, harmonizing with the existing urban environment while elevating Bratislava’s skyline with a contemporary touch. These skyscrapers will become iconic landmarks, signaling a progressive approach to urbanism and boosting the city’s appeal to investors and visitors alike,” Sedláček noted.

The KCAP-designed skyscrapers will feature over 1,000 residential units, making them two of the tallest residential buildings in the European Union. The towers will showcase warm metallic façades that subtly reflect light, adapting their appearance with changing weather and time of day.

Connected by glass base pavilions offering amenities and community spaces, the development emphasizes integration between architecture and nature. Inspired by the flowing forms of the nearby Danube River, the design incorporates a lush 7,300-square-meter green area, significantly expanding the planned open space in the Eurovea City district.

Sustainability is central to the project, with innovative systems that reduce concrete usage, optimize construction, and minimize carbon emissions. “With this project, we aim to set a new benchmark for high-rise living—blending architectural ambition with sustainable innovation,” said Jeroen Dirckx, KCAP Partner.

The competition attracted world-class architects, tasked with envisioning high-rises that would elevate Bratislava’s cityscape while integrating into a sustainable urban district. The jury included Bratislava’s Chief Architect Juraj Šujan, renowned architect Hadi Teherani, and JTRE’s Executive Director Pavel Pelikán.

Pelikán expressed satisfaction with the breadth of submissions: “We sought visionary designs from renowned architects experienced in high-rise projects. KCAP’s proposal not only meets these criteria but also redefines Bratislava’s urban profile with bold, sustainable landmarks.”

KCAP, based in Rotterdam, Zurich, and Paris, collaborated with British engineering firm Buro Happold to deliver the winning concept. Known for expertise in urban planning and architecture, KCAP brings together a global team of over 100 professionals focused on creating innovative solutions for growing cities.

The Bratislava skyscrapers promise to be transformative, establishing a new standard for high-rise design in Europe. As construction begins, the project is set to bolster Bratislava’s global architectural standing and further its reputation as a dynamic, forward-thinking European capital.

Develia Group reports robust financial and operational growth in 2024

Develia Group has reported exceptional growth in its financial and operational performance for the first three quarters of 2024, achieving a net profit of PLN 215.6 million, a remarkable 72.8% increase compared to the same period last year.

The group’s sales revenues surged to PLN 1,037.6 million, a 32% jump from PLN 786.2 million in the corresponding period of 2023. Develia’s strong performance was bolstered by robust sales in its residential segment, with 2,700 units sold under development and preliminary agreements between January and September, marking a 31% increase from the 2,059 units sold last year. By the end of October, the developer had reached 2,933 unit sales, meeting its annual sales target two months ahead of schedule.

In terms of handovers, Develia transferred 1,797 units to clients during the first nine months of 2024, up 38% from 1,298 units in the same period last year. The company also launched and initiated construction on 3,482 new units during this period. Key projects driving this growth included Centralna Park and City Vibe in Kraków and Bemosphere in Warsaw.

Strengthening Market Position and Sustainability Goals

Commenting on the results, Develia’s President, Andrzej Oślizło, emphasized the company’s commitment to sustainable development and operational excellence. “Our sales results to date and those anticipated for the remainder of 2024 will further bolster Develia’s market share and strengthen our position at the forefront of the industry. In the final weeks of the year, we will focus on unit handovers and prepare new investments for next year,” Oślizło said.

Develia has continued its commercial property divestment strategy, concentrating efforts on the residential market. This strategy saw the company formally conclude operations at Arkady Wrocławskie in Q3 2024, with demolition scheduled following legal approval. The sale of Arkady Wrocławskie is targeted for completion by August 2025.

In August, Develia signed a preliminary agreement for the sale of its Kolejowa Street property in Wrocław to a subsidiary of AFI Europe for PLN 50.5 million net. A conditional sale agreement was finalized in November, with the transaction expected to close by year-end.

Financial Stability Amid Growth

Despite its aggressive expansion, Develia reported a strong cash position of PLN 586.4 million as of September 30, 2024, compared to PLN 703.4 million at the end of 2023. The group’s financial liabilities stood at PLN 950.3 million, reflecting an increase from PLN 883.9 million at the end of last year.

Vice President Paweł Ruszczak highlighted the company’s ability to deliver strong financial results while scaling its operations. “After three quarters, we see continued improvement in our financial performance compared to last year’s record results. Our solid financial position enables us to expand operations, increase market share, and distribute profits to shareholders. The accumulation of housing handovers in Q4 will further enhance our annual results,” he said.

With the completion of several key projects and strong sales momentum, Develia is poised to maintain its trajectory of growth and innovation, cementing its position as a leader in Poland’s residential real estate market.

Garbe expands Italian logistics portfolio with landmark acquisition in Tortona

Garbe Industrial Real Estate Italy has announced a significant milestone in its ongoing expansion in Italy. The company has acquired a 265,000-square-meter plot of land in Tortona, Alessandria, marking another strategic investment in Northern Italy’s booming logistics market.

The site, fully permitted for construction, will house a state-of-the-art 102,000-square-meter logistics complex in a single block. Once completed, it will be one of the largest logistics facilities in Northern Italy, positioned along the critical Genoa-Milan transport corridor. Development of the project, led by renowned European contractor GSE Goldbeck, is expected to take 16 months and will meet the highest sustainability standards, with a LEED Platinum certification.

The Tortona site represents a prime logistical hub due to its proximity to the Genoa interport and its position within a key European freight transport network. The project underscores Garbe’s strategic approach to addressing growing demand for advanced logistics infrastructure in Northern Italy.

“This acquisition is a pivotal step in accelerating our expansion in Northern Italy, a region offering substantial opportunities driven by the rising demand for sophisticated logistics spaces across Europe,” said Giulia Fradegrada, Head of Investment Italy at Garbe. “This development reinforces our commitment to providing diversified and attractive investment opportunities.”

Garbe continues to champion environmentally conscious development through its “Sustainonomics” philosophy, which integrates sustainability with regional and economic benefits. The Tortona project joins the ranks of Garbe’s other LEED Platinum-certified developments in Italy, including the Giovi Logistics Park in Silvano Pietra (Pavia) and the facility under construction in Covo (Bergamo).

“The logistics sector in Italy is evolving toward a model that prioritizes environmental, social, and economic sustainability,” noted Marco Grassidonio, Country Head Italy of Garbe Industrial Real Estate. “The Tortona project embodies our commitment to minimizing environmental impact while delivering tangible regional benefits and creating modern infrastructure.”

The transaction was supported by the law firm DLA Piper for legal aspects and CBRE for technical due diligence. GSE Goldbeck, recognized for its expertise in logistics and industrial construction, has already commenced work on the site, which will feature cutting-edge infrastructure and technological advancements.

This ambitious development not only cements Garbe’s position as a leader in sustainable logistics solutions but also highlights the company’s role in shaping the future of Italy’s logistics landscape.

Hungary’s office market faces oversupply while retail and hotel demand show promising signs for 2025

Hungary’s commercial real estate market is grappling with challenges as transaction volumes dwindle and foreclosures rise, driven by high interest rates and elevated yield expectations. However, experts at BDO Corporate Finance forecast a turnaround in 2025, with varied trajectories across market segments.

“The industrial-logistics, office, retail, and hotel sectors are all facing unique challenges and opportunities. Flexibility will be essential for investors as each segment offers different growth prospects,” said Viktor Máté, Director of Real Estate Advisory at BDO Corporate Finance.

Market Segments at a Crossroads

The industrial-logistics sector is poised for further expansion, with 340,000 square meters of new space set to be delivered by year-end, particularly in Budapest and other major cities. However, this rapid growth brings the risk of oversupply, potentially driving vacancy rates higher. Investors are advised to carefully track rental trends and demand for new developments.

The Budapest office market is facing a vacancy rate projected to reach 15% by the end of 2024. The enduring impact of remote and hybrid work models has led tenants to reevaluate their space requirements, stabilizing or even reducing rental prices.

In contrast, the retail sector is showing signs of recovery. As consumer confidence improves, so does demand for traditional retail spaces, with vacancy rates stabilizing and even trending downward.

The hotel market is also rebounding strongly. The number of foreign guests has surged, with nearly as many overnight stays recorded in the first eight months of 2024 as in pre-pandemic years. While some hotel projects may face delays, the sector’s long-term outlook remains positive, bolstered by improving occupancy rates and steady tourism growth.

BDO Expands into Real Estate Advisory

Responding to these evolving market conditions, BDO Corporate Finance has launched a new real estate advisory service aimed at addressing the complexities of the current landscape.

“Market conditions today demand a comprehensive approach to real estate transactions, utilization, and development,” said Viktor Máté. “Our advisory service is designed to provide clients with tailored solutions across all segments of the real estate market, leveraging financial, technical, and industry expertise.”

The new service, led by Máté and supported by veteran real estate expert Attila Szegedi, positions BDO as a unique player in Hungary’s market. With nearly two decades of combined experience, the team is well-equipped to guide clients through investment strategies, property development, and market utilization.

Looking Ahead to 2025

While 2024 has brought challenges, the forecast for 2025 points to opportunities for recovery and growth in Hungary’s commercial real estate market. Retail and hotel segments are expected to lead the rebound, while industrial-logistics and office markets may require cautious navigation amid oversupply risks.

With its new real estate advisory division, BDO Corporate Finance aims to help market participants capitalize on these opportunities and adapt to the shifting landscape, setting the stage for a more dynamic and resilient sector in the year ahead.

Source: BDO Corporate Finance

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