Palacký University seeks to acquire Haná Barracks in Olomouc for CZK 89.1 million

Palacký University (UP) has expressed its intention to purchase the Haná Barracks, located in the heart of Olomouc, for CZK 89.1 million. The university has formally requested the Office for State Representation in Property Matters (ÚZSVM) to match the winning bid, which was secured during an auction conducted by the Redstone development company in early September.

Michaela Tesařová, a spokesperson for ÚZSVM, confirmed the university’s interest today, noting that the deadline for Palacký University to indicate its intention to match the bid is set to expire at the end of the day. The acquisition of the barracks received the green light last week from both the university’s academic senate and its board of trustees.

“The ÚZSVM has received a written statement from Palacký University regarding its interest in matching the highest bid achieved in the electronic auction. We will wait until the end of today to conclude this process and will then inform the auction winner,” Tesařová stated yesterday. The sale of the listed building has been a focus for ÚZSVM since September 2021, with the initial auction price set at CZK 262 million before being reduced to CZK 89 million in the ninth round.

UP Rector Martin Procházka described the proposed acquisition as a strategic decision for the university. He emphasized that the purchase price of CZK 89.1 million is advantageous and will be financed through the university’s own resources. The university plans to gradually renovate the building, which has a usable area of 23,490 square meters, seeking state and European subsidies to aid in the effort. Experts estimate that the renovation could cost approximately CZK 1.896 billion. The renovated space is expected to accommodate student housing, addressing a significant shortage, along with catering facilities, offices, and conference rooms. Some areas may also be designated as warehouses.

The plan was presented to the deans of UP’s eight faculties, although Martin Kubala, dean of the Faculty of Science, opposed it, expressing concerns that the financial burden of purchasing and renovating the barracks could detract from other university investments for years to come. The Academic Senate subsequently approved a resolution signaling no objections to expressing a binding interest in acquiring the Haná Barracks, thus paving the way for the transaction. Senators also requested assurances from university management that other planned investment projects would not be compromised and that faculty levies would not increase as a result of this acquisition.

The Haná Barracks have a long history, having served the military for 170 years before becoming vacant in 2013. Previously, the Olomouc Region, along with the Olomouc City Hall and UP, had shown interest in acquiring the site. However, experts have noted the building’s deteriorating condition, leading the regional council to rescind a prior resolution that would have permitted the barracks to be transferred free of charge.

Source: CTK

Deloitte report: Four Polish banks among the world’s 40 digital champions

Four banks from Poland have been recognized as part of the 40 “digital champions” leading the way in the banking sector transformation, according to a new report by Deloitte. The analysis encompassed 349 banks across 44 countries.

The report highlights the rapid digital evolution in the banking industry in the wake of the COVID-19 pandemic, as institutions hurriedly integrated features to meet the changing needs of their customers. “Online banking platforms have become more sophisticated, mobile applications have expanded with new functionalities, and financial institutions have rushed to stay ahead of the competition,” the report states in its overview of “Digital Banking Maturity 2024.”

However, the evolving digital landscape has given rise to a new trend: rather than continually adding new features and overwhelming users with options, leading digital banks are now focusing on optimizing core processes and enhancing customer service. “Instead of cluttering their applications with an ever-expanding list of functionalities, banks are prioritizing the quality of the experience over quantity, concentrating on liquidity, personalization, and the performance of essential functions,” the report elaborates.

In this year’s sixth edition, nearly 349 financial institutions from six continents were surveyed, evaluating three key areas: an analysis of over 1,000 digital features, consumer preferences across 18 key banking activities, and principles and best practices in user experience design (UX).

The surveyed banks were categorized into four groups: the top performers, dubbed digital champions, are paving the way for the banking sector’s digitalization, which includes the four Polish banks. The second group comprises digital smart followers—institutions effectively implementing key solutions and striving to match the leaders. Following them are the imitators (digital adopters) in the process of adapting technology and developing their digital functionalities, with the final group comprising banks that are just beginning their transformation (digital laggards).

According to the report, Europe leads with the highest number of digital champions, followed by India, Turkey, and Brazil.

“Our research indicates that leading digital banking providers, most of which are based in Europe, have developed a significant advantage over their competitors in the past two years, offering more features that support long-term customer relationships,” commented Wiesław Kotecki, partner and head of Deloitte Digital’s customer strategy and design team. He noted that the most advanced firms offer services that extend beyond traditional banking nearly three times more frequently, and the gap is similarly significant in ecosystem and account aggregation categories.

Deloitte experts caution, however, that since 2022, there has been a certain stagnation in implementing new functionalities in banking applications. Increasingly, institutions are focusing on enhancing existing features and improving overall user experience rather than solely chasing new innovations.

In Poland, leading banks are increasingly focusing on redesigning their applications. The report’s authors point out a notable slowdown in introducing new functionalities in the domestic market, with some banks even reviewing and retracting less useful features.

“Polish banks can be divided into two groups. The first consists of established market leaders that, over the past two years, have focused on improving the design of their applications to support users in utilizing digital channels effectively. The second group includes institutions that previously had less developed digital channels, now attempting to add new functionalities and expand their offerings for customers, particularly in core banking functions. Undoubtedly, they are learning from the experiences of their higher-ranking competitors and introducing customer-centric services,” emphasized Przemysław Szczygielski, partner and head of financial services for Poland, the Baltic States, and Ukraine at Deloitte, as well as the leader of regulatory and risk advisory services.

Source: Deloitte and ISBnews
Images: Digital Banking Maturity 2024, Deloitte

InPost acquires remaining 70% of Menzies Express and Newstrade for GBP 60.4 million

InPost Group has finalized the acquisition of the remaining 70% of Menzies Express and Newstrade for £60.4 million, solidifying its position in the UK logistics market. This move allows InPost to gain complete control over its logistics operations in the UK.

The acquisition follows a year of significant growth for InPost in the UK, with revenues tripling compared to the previous year. Taking full ownership of Menzies will enable the company to scale its operations to meet the rising demand in the market.

“By fully integrating Menzies Express and Newstrade into our operations, we are better positioned to deliver unique offerings in quality, price, and convenience to our customers,” stated Rafał Brzoska, founder and CEO of InPost. “Our long-term vision is to revolutionize the UK e-commerce landscape. Collaborating with Menzies, we are forming an integrated organization that can effectively cater to the increasing consumer demand for supplies to parcel locker machines in the UK.”

In 2023, InPost acquired a 30% stake in Menzies for £49.3 million, with the option to purchase the remaining shares within three years.

“This latest transaction empowers InPost with full control over its UK logistics operations, facilitating accelerated development plans, particularly in delivering high-quality B2C services through next-day parcel locker machines,” the company explained in a statement. “This acquisition enhances InPost’s position as a leading provider of parcel locker services in the UK, creating a faster, more cost-effective, and sustainable delivery system for both customers and consumers.”

Neil Kuschel, CEO of InPost UK, highlighted that unifying operations within a single group will streamline efforts in the logistics sector, particularly as more UK consumers embrace the benefits of Paczkomat devices. He noted that the acquisition merges the strengths of both companies and builds upon the commercial successes achieved under the leadership of Menzies Group’s CEO.

Before this transaction, Menzies was structured into three segments: Express, Newstrade, and MDS. The acquisition specifically pertains to the Express and Newstrade segments, while the MDS segment, which focuses on full-load transport and warehousing, will continue to be managed by Endless LLP, with InPost retaining a 30% share.

The enhanced logistics and operational capabilities derived from the synergy with Menzies have allowed InPost to achieve a remarkable 156% year-on-year parcel growth in the UK during the first half of 2024. Additionally, improvements in Menzies services have led to better performance in key quality indicators (KPIs).

As of August 2024, InPost operated over 78,000 out-of-home points across nine countries, including more than 43,000 modern Paczkomat devices and 35,000 PUDO points. The company also offers courier and fulfillment services to e-commerce retailers, collaborating with approximately 100,000 e-sellers. In 2023, InPost managed 892 million shipments.

Founded in 1999 by Rafał Brzoska in Poland, InPost is a leading supply platform for e-commerce. The company completed its acquisition of French logistics company Mondial Relay in July 2021 and debuted on Euronext Amsterdam in January 2021.

Source: InPost and ISBnews

BitKOIN project aims to transform mineral wool waste into sustainable cement binder

In a significant initiative for sustainability, PORR has launched the BitKOIN project in collaboration with leading companies such as Holcim, Rohrdorfer, and Saint-Gobain, alongside the University of Leoben and Graz University of Technology. This project focuses on researching the recycling of mineral wool waste as an environmentally friendly substitute for blast furnace slag, ultimately serving as a CO2-reduced binder in cement production.

Mineral wool is a widely used insulating material in building construction, known for its low density and unique properties. However, its difficult compressibility leads to rapid landfill accumulation, causing instability. Starting January 1, 2027, the disposal of artificial mineral fibres (AMF), including mineral wool waste, will be banned in landfills throughout Austria.

“This is why PORR has initiated the BitKOIN research project with industrial partners,” stated Karl-Heinz Strauss, CEO of PORR. “The mineral wool waste, which can be hazardous, will be transformed into a non-hazardous, CO2-reduced additive for cement production. This marks a major advancement for the circular economy in construction.”

Under the guidance of the Chair of Waste Processing Technology and Waste Management at the University of Leoben, the team aims to develop a substitute for granulated blast furnace slag, dubbed “Slag Sand 2.0,” using mineral wool. With the iron and steel industry’s ongoing decarbonisation and a shift away from the blast furnace route, the production of granulated blast furnace slag is expected to decline in the coming years.

The process involves thermally treating mineral wool waste in combination with other residual materials to create synthetic granulated blast furnace slag. This innovative approach is anticipated to significantly reduce overall emissions in the binder industry.

Preliminary tests are currently underway at the Chair of Thermal Process Engineering at the University of Leoben to formulate the optimal recipe for this new binder. PORR’s role in the BitKOIN project includes collecting crucial data on mineral wool waste generation, as limited information currently exists. The company is also pivotal in the processing and shredding of mineral wool waste at its Recycling Center Himberg (RCH), providing processed samples for research testing.

“With the BitKOIN project, we are taking a crucial step toward sustainable waste recycling,” Strauss emphasized. “Together with the University of Leoben and our industry partners, we are pioneering new methods for utilizing mineral wool waste, actively contributing to a CO2-reduced future.”

SEGRO Park Berlin Airport reaches full occupancy and expands by 27,500 sqm

SEGRO has announced full occupancy at its SEGRO Park Berlin Airport, following recent leases to Solaris Deutschland GmbH (1,929 m²) and SGB Securitas Gleisbausicherung GmbH (498 m²). These agreements mean that all units across phases 1 to 6 of the business park are now fully let.

In response to strong demand, SEGRO has begun construction on Phase 7, which will add 27,500 m² of industrial space. This new phase, initiated in October, will offer 20 light industrial and urban logistics units ranging from 1,000 to 2,400 m². Completion is expected by December 2025.

Tim Rosenbohm, Director of Development Light Industrial at SEGRO Germany, commented on the expansion: “With the expansion of our SEGRO Park Berlin Airport, we are responding to the continued high demand for modern, flexible, and sustainable industrial space.”

The development aligns with SEGRO’s commitment to sustainable, low-carbon growth. All current properties have earned DGNB Gold certification for sustainability, with the goal of achieving DGNB Platinum for Phase 7. Environmentally friendly features include green roofs and facades, wooden trusses, and electric vehicle charging stations. Additionally, a photovoltaic system with nearly one megawatt of peak output has been installed to supply tenants with renewable energy, helping them lower CO2 emissions and energy costs.

SEGRO has also taken steps to create a healthy ecosystem within the park by installing beehives, insect hotels, and bird nesting boxes for native species.

Located near Berlin-Brandenburg Airport, SEGRO Park Berlin Airport offers easy access to the B96a and the A113 and A117 motorways, providing excellent connectivity to the region’s transport network.

Polish job vacancy market sees gradual recovery, service and manual labour sectors lead growth

The Polish job vacancy market is showing signs of steady recovery, according to the latest Job Vacancy Barometer prepared by the Department of Economics and Finance at WSIiZ in Rzeszów and the Bureau of Investment and Economic Cycles (BIEC). The barometer, which tracks job advertisements posted online, has been providing insight into the Polish labour market for 20 years. Over this time, significant transformations have occurred, including a sharp rise in vacancies and a marked drop in unemployment rates. Despite these advances, the labour market continues to evolve, influenced by technological, demographic, and social changes.

In September 2024, the Barometer recorded its fourth consecutive increase, marking the largest jump since April. With the exception of May, job vacancies have been on the rise throughout the year, though growth has been modest. Vacancies hit a low point at the end of 2023, but this year’s improvements have pushed them back to levels last seen in the first half of 2021.

The current increase in job openings is being driven largely by employers in the service sector and those offering manual labour roles. In fact, vacancies for manual labour positions hit an all-time high in September. Job postings in the service sector have also been increasing steadily for the past seven months, edging closer to their previous peak in April 2022. Additionally, there has been a slow but steady rise in job ads targeting candidates with social sciences backgrounds since March, although overall numbers remain below previous years’ levels.

However, the market for vacancies requiring science degrees continues to shrink. September marked the sixth consecutive month of decline in these postings, though there are tentative signs that the downward trend may be slowing.

Regional and Sector-Specific Trends

Across Poland, most voivodeships saw a rise in online job advertisements in September. The provinces of Podlaskie, Wielkopolskie, and Warmińsko-Mazurskie recorded the largest increases, while Lubuskie, Świętokrzyskie, and Zachodniopomorskie experienced the biggest declines. Interestingly, the rise in job ads was similar across provinces with both high and low unemployment rates.

The registered unemployment rate, excluding those engaged in seasonal work, dropped by 0.1 percentage points in August to 5.1%, following two months of increases. Despite fluctuations in the number of job vacancies, the unemployment rate has remained relatively stable during recent economic turbulence.

Occupations and Job Types

Looking at specific occupations, job openings at the end of 2023 had fallen across all major groups, but not all have rebounded. For example, roles requiring higher education (such as specialists, technicians, and office workers) have seen fewer vacancies in 2024 compared to early 2021. Conversely, jobs for machinery operators, assemblers, and employees performing simple tasks have risen, though numbers for the latter group remain below 2021 levels.

Some sectors, including healthcare and customer service, have seen stronger growth. Vacancies for health professionals (group 22) and drivers, food service workers, and construction labourers have been on the rise since the start of 2024. In contrast, job postings for IT professionals and those in physical, mathematical, and technical sciences continue to decline.

Contract Types and Work Modes

While full-time work remains the most common type of employment offered, the proportion of part-time and temporary positions has grown in recent years. Notably, employers are increasingly offering business-to-business (B2B) contracts, especially for roles in technical fields like electronics and mechanics. However, more traditional employment contracts remain dominant.

Remote and hybrid work options, which spiked in popularity during the COVID-19 pandemic, have declined since reaching a peak in 2023. Hybrid work is still more common than fully remote roles, though both have been gradually falling in favor as employers push for a return to the office. Mobile job roles, particularly for street vendors, drivers, and waste loaders, have remained stable at around 15% in 2024.

Outlook

As the Polish labour market continues to adjust to ongoing changes, including the growing importance of digital skills and the rise of flexible work models, job seekers and employers alike will need to remain agile. With a broad range of sectors showing signs of recovery, particularly in services and manual labor, Poland’s job market is gradually climbing out of its post-pandemic slump. However, challenges remain for sectors requiring specialized education, where vacancies are still falling.

Authors: Robert Pater and Herman Cherniaiev
Source: WSIiZ and BIEC

Frankfurt office market slows as large deals decline, but prime rents rise

The Frankfurt office market has experienced a slowdown in take-up this year, largely due to a lack of large deals. So far, 258,600 square meters of office space has been leased in 2024, a figure 4.4% below the same period in 2023 and 18% lower than the 10-year average, according to data from Savills.

Christian Krieg, Team Leader of the Office Agency at Savills in Frankfurt, explained the drop in activity: “The below-average lettings performance is primarily due to fewer new leases being signed.” In total, 300 leases have been agreed upon so far this year, compared to an average of 420 over the past decade. Notably, there have been only two leases of more than 7,000 square meters, compared to an average of five such large deals per year over the last decade.

Krieg attributed this decline to both economic uncertainties and the shift toward hybrid working models, which have reduced the demand for office space. Many companies are opting to extend their existing leases rather than relocate. “Users are postponing moves due to the current economic situation, leading to fewer large lettings,” he said.

Adding to this, Fabian Kupczyk, Co-Team Leader of the Office Agency at Savills, noted that landlords’ investments in existing spaces are also encouraging tenants to stay. “Tenants are increasingly demanding high-quality office spaces but are struggling to afford the high rents of new-build projects. Landlords who invest in upgrading their existing properties can offer these premium spaces at a lower cost than new developments,” Kupczyk explained. However, he warned that rising costs could make such upgrades more challenging for landlords in the future.

Despite the decrease in take-up, prime rents in Frankfurt have continued to rise. In the third quarter, the prime rent increased by 2.2% to €46.00 per square meter, while the average rent dropped slightly by 0.8% to €24.80 per square meter. The city’s vacancy rate also rose, increasing by 30 basis points to 10.3% compared to the previous quarter.

Krieg noted that the rise in prime rents is being driven by limited availability of high-quality office space and the current interest rate environment. “While vacancy rates continue to climb, particularly for lower-quality buildings in less favorable locations, prime rents are being supported by the scarcity of premium space,” he said.

Looking ahead, Savills predicts that both prime rents and the vacancy rate will continue to rise through the end of the year. However, take-up is expected to surpass last year’s level, despite the ongoing challenges facing the market.

Poland urged to mobilize private capital for innovation investment

Poland must boost its competitiveness through increased investment in innovation, with a focus on mobilizing private capital, according to experts speaking at the “Banking & Insurance Forum.” The discussion highlighted the need for more robust financial backing from the private sector to tackle the country’s economic challenges, particularly in areas like energy transformation.

“We need to invest billions more in innovation if we are to catch up with the European Union,” said Tomasz Bardziłowski, President of the Warsaw Stock Exchange, during the forum. “While we are aware of the limitations of public finances, it’s crucial that private capital, including the banking sector and capital markets, steps in to support these efforts.”

Bardziłowski pointed out that private investment rates in Poland are currently lower than in other European countries, a trend that could hinder development across the continent. He also warned that Europe as a whole faces a challenge in financing its growth. “There is more savings in Europe than in the United States, yet these funds are often invested overseas due to higher returns, which results in higher capital costs for us,” he explained.

His comments underscored the importance of addressing regulatory issues to improve investment conditions across Europe.

Brunon Bartkiewicz, President of ING Bank Śląski, echoed these concerns, noting that private investment in Poland has been insufficient since 2014. He attributed this to legal and regulatory uncertainty, as well as long-standing neglect in modernizing critical infrastructure, including energy systems. The lack of investment in energy infrastructure, he said, has led to high energy costs, reducing the competitiveness of Polish businesses.

Bartkiewicz also emphasized the importance of diversifying Poland’s export markets. “Europe shouldn’t be our only reference point. We need to expand into other regions to grow faster. Our dependence on a few key markets—like Germany—makes us vulnerable. When Germany catches a cold, we get the flu,” he said.

Beata Stelmach, a member of the supervisory board at Bank Millennium, stressed the need for government involvement to support Polish companies in entering new markets, especially in regions like Africa and South America. “Diplomatic support is essential when competing in difficult markets. Without the backing of embassies and government, it’s impossible to compete with local businesses,” Stelmach said.

The forum participants agreed that while public finances play a crucial role, the key to driving Poland’s innovation and economic growth lies in a coordinated effort to unlock private capital and strengthen the country’s infrastructure and regulatory framework.

Source: ISBnews
Photo: Tomasz Bardziłowski, President of the Warsaw Stock Exchange and Brunon Bartkiewicz, President of ING Bank Śląski

Poland aims to craft EU-wide AI strategy during Its presidency

Poland is set to push for the creation of a unified European strategy for artificial intelligence (AI) during its upcoming presidency of the European Union, Deputy Minister of Digital Affairs Dariusz Standerski announced yesterday. The Polish government is also expected to introduce a domestic bill on AI within the week, further solidifying its stance on the digital sector.

“Poland’s position in the digital landscape is clear: we are not seeking new legal frameworks. What we need is a comprehensive AI strategy. There is currently no coherent digital law across the EU,” Standerski said at the Banking & Insurance Forum in Warsaw.

He emphasized Poland’s goal to bring forth specific strategic policies and investment proposals during its EU presidency. The priority, he said, is to achieve consensus on common AI procedures across member states. “The biggest success of our presidency will be if we can establish a unified approach to AI within the EU,” Standerski added.

Standerski noted that the lack of a coordinated European strategy is hindering the development of AI, as each member state currently has its own regulations and investment plans. “There’s no European coordination that could expand our opportunities for collaboration,” he said, calling for stronger cooperation across the bloc.

This week, Poland is set to unveil a new bill on AI, which will be open for consultation. The Deputy Minister also announced a broader debate on financing the digital sector, which has so far been largely dependent on the telecommunications industry. “We need to discuss whether mid-sized cities in Poland can host computational centers, which are essential for AI development,” Standerski said.

He identified three key challenges for Poland’s digital transformation: education, workforce development, and energy infrastructure. The first challenge, education, will be addressed through new training programs as part of Poland’s National Reconstruction Plan (KPO). The second challenge is increasing the share of ICT sector employees, where Poland currently lags behind other EU countries. Solutions, according to Standerski, include better education and a more effective migration policy to attract skilled workers. Lastly, he highlighted the energy demands of AI technologies, stressing the need for robust infrastructure to prevent power shortages as AI adoption grows.

“We need digital skills, a capable workforce, and the right infrastructure to support widespread AI use without risking blackouts,” Standerski concluded.

Last week, Standerski confirmed that the Ministry of Digital Affairs would soon release the first draft law on AI, which will focus on its application in critical areas such as healthcare, justice, and transport.

Source: ISBnews
Photo: Deputy Minister of Digital Affairs Dariusz Standerski

Prague bans pub crawls in response to night noise complaints

The Prague City Council has officially banned pub crawls—nightly, agency-organized tours that take tourists from pub to pub. The decision, which was approved today by city councillors, is set to take effect immediately following its publication in the legislative bulletin. The ban, driven by complaints from Prague 1, aims to reduce nighttime disturbances caused by loud, intoxicated tourists.

Prague 1, the district most affected by noisy nightlife, had long pushed for stronger action. According to Deputy Mayor Zdeněk Hřib (Pirates), the regulation was formulated in collaboration with local tourism authorities, including Prague City Tourism, and traditional tour guides, who can continue their activities between 6:00 AM and 10:00 PM. Another Deputy Mayor, Jiří Pospíšil (TOP 09), noted that guides had no objections to the ban on pub crawls.

The new measure amends Prague’s market regulations, specifically targeting the “errand provision of services,” which includes pub crawls, while exempting guided tours during the daytime. City officials argue that pub crawls contribute to noise, litter, and security issues, straining the city’s resources. “Excessive deployment of municipal services, including cleaning crews and police, puts a burden on the city budget and personnel,” states the proposal’s explanatory report. Officials also raised concerns about Prague’s image, suggesting that groups of drunken tourists harm the city’s reputation and deter both visitors and investors.

However, not everyone agrees with the ban. Prague Pub Crawl, one of the agencies impacted, criticized the move as “populist” and ineffective at addressing the core issues of night noise. “Our clients are instructed to respect quiet hours after 10:00 PM, and any rule breakers are excluded from the tour,” said a spokesperson. The company further argued that the real problem occurs after midnight on streets like Dlouhá, where crowds gather outside clubs, often until the early morning. They believe the ban will worsen the situation, as tourists will still seek out nightlife, but without the structure and supervision of organized tours.

Another agency, Drunken Monkey, echoed similar concerns. “It’s the unguided groups that cause the most noise,” said the company in a statement, suggesting that the ban will backfire by removing trained guides who help maintain order. Since starting operations in 2011, Drunken Monkey claims it has not received any complaints for noise violations.

In contrast, Prague 1’s leadership welcomed the new regulation. “This updated market order is a powerful tool to maintain order and minimize the negative effects of street noise on residents and visitors,” said Terezie Radoměřská (TOP 09), Mayor of Prague 1.

Prague has long struggled with “alcotourism,” where young foreign visitors come to the city for cheap alcohol. The city’s broader issue of overtourism is also a concern, with last year’s figures showing 7.4 million tourists staying in hotels, a 25% year-on-year increase, according to the Czech Statistical Office.

While the ban has sparked debate, the city hopes it will lead to quieter nights in Prague’s historic center, improving the quality of life for both locals and tourists alike.