Marvipol sells Warsaw warehouse project for €53.38 Million

PDC Industrial Center 135, a joint venture between Marvipol Logistics (a subsidiary of Marvipol Development), PG Dutch Holding I B.V., and Hermes Platinum, has finalized the sale of a logistics and warehouse project in Warsaw for a net price of €53.38 million, according to a statement from Marvipol.

The deal involves the sale of a 82,000-square-meter property located in the Białołęka district of Warsaw, Mazowieckie Voivodeship. The facility, operated by a special purpose vehicle (SPV), has been used for real estate rental activities. In addition to the net sale price, value-added tax (VAT) on goods and services will be added to the transaction.

Marvipol Development, a well-known Polish developer, specializes in two primary sectors: residential and logistics. Through special purpose vehicles, the company undertakes multi-family housing and warehouse construction projects, investing in both development and commercialization, with the goal of selling fully commercialized projects.

The company took over the development arm of Marvipol S.A. in 2017, continuing a legacy of real estate development that dates back to 1996.

Source: Marvipol and ISBnews

Polish KNF Reports 3% annual growth in loans, 7.1% rise in deposits by August 2024

The Polish Financial Supervision Authority (KNF) announced that the total value of loans in the non-financial sector rose by 3% year-on-year (YoY) by the end of August 2024, reaching PLN 1,195.5 billion. This marks an increase of PLN 10.1 billion or 0.9% month-on-month (MoM). Meanwhile, deposits in the non-financial sector also saw significant growth, climbing 7.1% YoY to PLN 1,873.2 billion, with an MoM increase of PLN 5.1 billion or 0.3%.

In the household sector, loans grew by 3.8% YoY, totaling PLN 785.6 billion, while loans to businesses rose by 1.6% YoY to PLN 428.16 billion.

The housing loan portfolio for households increased by PLN 2.2 billion in August to reach PLN 466.6 billion (+0.5% MoM, +4.4% YoY). Zloty-denominated housing loans now account for 92.7% of the total housing loan portfolio.

On the consumer side, the gross loan portfolio expanded by PLN 2.2 billion, reaching PLN 202.1 billion (+1.1% MoM, +7.6% YoY).

The loan-to-deposit ratio rose slightly to 61.4% by the end of August, an increase of 0.3 percentage points MoM but a drop of 2.2 percentage points compared to the previous year.

Source: KNF and ISBnews

Accolade secures €29.5 million green financing for Park Szczecin VI

International investor Accolade has successfully secured €29.5 million in green financing from BNP Paribas Bank Polska to develop Park Szczecin VI, a state-of-the-art industrial park located within the Dunikowo Special Economic Zone. Spanning over 54,000 square meters, this new facility marks a significant step in Accolade’s broader strategy to invest in sustainable industrial parks that contribute to the long-term economic growth of the region.

Joanna Sinkiewicz, Group Commercial Director and Managing Director at Accolade Poland, emphasized the importance of the development in the company’s expansion within the West Pomeranian region:
“Park Szczecin VI represents our response to the increasing demand for sustainable industrial facilities. We aim to offer tenants energy-efficient solutions while also supporting environmental care. Our goal is to provide long-term flexibility and optimization for our users, even amid changing economic conditions, while fostering the development of local communities,” she stated.

The financing was made possible under the framework of Accolade’s Green Finance Framework, which aligns with the EU taxonomy and Green Loan Principles. This framework ensures that all projects adhere to strict environmental guidelines, reinforcing Accolade’s commitment to sustainability.

Elżbieta Chmielowska, Head of Real Estate Finance at BNP Paribas Bank Polska, highlighted the bank’s long-standing partnership with Accolade and their shared commitment to sustainable projects:
“We are proud to support Accolade in its latest investment. As leaders in sustainable financing, we are particularly focused on projects with high energy efficiency, and Park Szczecin VI perfectly aligns with our strategy.”

In keeping with its sustainability goals, Park Szczecin VI will pursue BREEAM certification with a target rating of “Outstanding.” The facility will incorporate advanced energy-saving technologies such as heat pumps, a recuperation system, a 1MWp photovoltaic installation, and LED lighting with DALI control. Upon completion, the building will undergo airtightness testing and thermographic assessments to confirm construction quality. Its primary energy demand is expected to be more than 80% lower than current national standards, making it the third Accolade facility in Poland to achieve such high certification, and the eighth in Europe.

The project is being developed under the BTS (Build-to-Suit) formula, tailored specifically to meet the operational needs of a leading European discount chain. Of the total 54,000 sqm, 51,000 sqm will be dedicated to warehouse space, while the remaining area will be used for offices. The facility will also exceed standard fire safety requirements due to its specialized purpose.

Accolade continues to strengthen its position as the leading investor in modern warehouse space within the West Pomeranian region, currently offering over 417,000 sqm across five parks. With a long-term goal of reaching 900,000 sqm, Accolade’s developments are set to further support regional economic growth and benefit the local community.

Expo Real 2024 in Munich offers optimism for a rebound in real estate investments

Expo Real 2024, one of the world’s leading real estate trade fairs, is generating a sense of cautious optimism among industry professionals. Investors and developers attending the event in Munich are hopeful that 2025 could bring a return to peak years in terms of both transaction volume and investment value.

“There is a clear mood of moderate optimism among investors, especially those with interests in the Polish real estate market,” said Bartłomiej Zagrodnik, Managing Partner and CEO of Walter Herz. He noted that investors from the Baltic states, the Czech Republic, Slovakia, and Hungary have shown particular interest in Poland during this year’s event. “While the atmosphere remains cautious, there is a growing sense that the Polish market could see positive developments in the coming quarters,” he added.

Zagrodnik highlighted that much of the interest is focused on the Private Rented Sector (PRS) and the residential market. “Poland continues to stand out in the region for its stable and favorable investment climate. This has attracted investors and developers who see great potential for further growth in these sectors,” Zagrodnik explained. He also pointed to a rising interest in Data Centers, a sector still in its infancy in Poland but showing early signs of transaction activity.

According to Expo participants, the fourth quarter of 2024 is expected to be dynamic, with an increase in portfolio transactions and significant property acquisitions across the warehouse, office, and retail segments. “All signs point to a busy end of the year, with the potential to close 2024 on a high note and lay the groundwork for optimistic forecasts heading into 2025,” Zagrodnik remarked.

Expo Real 2024 has reinforced Poland’s reputation as an attractive market for real estate investments, driven by factors such as recent interest rate cuts in the eurozone. Investors are looking to capitalize on opportunities in Poland, confident that the market will continue to grow and stabilize.

Held annually in October since 1998, Expo Real provides a comprehensive platform for real estate professionals to explore emerging trends, innovations, and solutions within the industry. The event in Munich continues to attract global leaders from across the real estate and investment sectors, offering insights into the future of the market. As Expo Real 2024 draws to a close, participants are looking forward to a promising year ahead, with hopes for a resurgence in investment activity across Europe.

Automotive industry faces mounting debt: Over PLN 1.41 billion owed by sector

The debt of the Polish automotive industry surged to over PLN 1.41 billion at the end of July 2024, according to the latest data from the Register of Debtors BIG InfoMonitor and the BIK credit information database. Of this, more than PLN 1.2 billion is attributed to companies involved in the wholesale, retail, and repair of passenger cars and commercial vehicles. Additionally, the rental and leasing sector saw its debt exceed PLN 217 million.

According to BIG InfoMonitor, nearly 252,000 companies in the motor vehicle trade and repair sector were analyzed, with over 14,000 of them (5.6%) facing overdue liabilities. On average, these companies owe around PLN 86,300. In the rental and leasing sector, 1,795 entities have overdue payments, and with approximately 12,000 companies in this market segment, around 15%, or one in seven, are burdened by debt.

“For car retailers, the main challenge lies in the escalating costs of vehicle procurement, driven by rising raw material and component prices, which increase the cost of bringing a vehicle to market. Repair shops are contending with soaring prices of spare parts and consumables. Meanwhile, the car rental and leasing sector is grappling with higher fleet maintenance costs. On top of this, the entire automotive industry is facing increasing pressure from new EU regulations and stricter environmental standards,” commented Sławomir Grzelczak, President of BIG InfoMonitor.

The challenges are further compounded by a significant drop in customer traffic. Citing data from the Association of Car Dealers, BIG InfoMonitor reports that in 2023, the automotive sector experienced notable declines in showroom visits (-19.5%) and customer numbers (-18.9%), despite an increase in new vehicle registrations. The fleet customer segment now accounts for nearly 70% of all sales, a clear indication of the market’s shift.

Jakub Faryś, President of the Polish Automotive Industry Association, anticipates a rise in car prices next year, which may encourage some buyers to act sooner. “It’s possible that customers aware of the upcoming price hikes will make purchases in this quarter or the next. As a result, the end of this year could be as strong, if not better, than last year. However, the forecasted price increases will likely lead to a noticeable downturn in the market next year. Dealers will need to navigate this challenge carefully, but overall, despite rising prices and growing debts, the situation for most companies in the automotive sector remains stable,” Faryś said.

BIG InfoMonitor also highlighted an increasing interest in car-sharing services, a trend driven by declining profitability in car ownership and shifting consumer lifestyles. Data from the Polish Vehicle Rental and Leasing Association (PZWLP) showed a 7.9% year-on-year increase in long-term leasing in the first half of this year, while the “Rent a Car” industry grew by 1.1% year-on-year as of June. A recent survey by Santander Consumer Multirent found that one in five Poles now uses car rental services for personal use.

Despite the growing trend toward renting, many companies in the sector continue to struggle with debt. Of nearly 12,000 companies listed in the Register of Debtors BIG InfoMonitor and the BIK database, almost 2,000 – or 15% of the total – have accumulated debts totaling PLN 217 million. The entire automotive sector is under financial strain, and debt levels are a crucial indicator of the severity of the issue.

In the third quarter of this year, over 53% of companies across Poland reported invoice payment delays of more than a month, exacerbating the problem of payment bottlenecks. This creates a vicious cycle, with outstanding receivables generating more debt, pushing the sector into deeper financial challenges.

“The automotive industry continues to enjoy strong customer demand, but rising unpaid debts pose significant risks. Striking a balance between growth and responsible debt management will be critical. To minimize risks, companies should carefully vet the financial credibility of their business partners and consider registering unreliable contractors in debt registers,” concluded Sławomir Grzelczak, President of BIG InfoMonitor.

Source: BIG InfoMonitor and ISBnews
Photo: Sławomir Grzelczak, President of BIG InfoMonitor

Housing crisis deepens: 160 Czech municipalities see a surge in poverty

A new report reveals that in 160 municipalities across the Czech Republic, significantly more people are living in material need compared to other parts of the country. Over the past 15 years, the number of poor residents receiving benefits in these areas has grown dramatically. The findings, published today by the Platform for Social Housing and the For Housing Initiative, point to a troubling rise in what experts call the “poverty business” – a situation where vulnerable tenants are trapped in overpriced and substandard housing.

The report, which analyzes data on housing benefits and subsistence allowances, highlights the growing disparity between these municipalities and the rest of the country. While the number of people in households receiving subsistence allowances nationwide increased by 1.14 times between 2008 and 2023, the growth in these 160 municipalities was five times higher. Similarly, while the number of housing benefit recipients across the country grew by 1.38 times, it skyrocketed by 8.1 times in these impoverished areas.

“I was surprised to find 160 municipalities where the majority of the population relies on housing benefits. When we hear from local authorities about the so-called poverty business, it is not an exaggeration,” said Jan Klusáček, an analyst and co-author of the report.

The data paints a stark picture: in these 160 municipalities, an average of 12 people per 1,000 inhabitants receive housing supplements. In the 40 municipalities with the highest increase in poverty, the figure rises to 18 per 1,000. By comparison, the national average is just five per 1,000. Similarly, while 13 people per 1,000 nationwide receive subsistence allowances, in these municipalities, the number jumps to 31, with the hardest-hit areas seeing as many as 44 per 1,000.

The report suggests that people in financial distress are often forced into substandard housing, paying exorbitant rents for inadequate living conditions. “For 20,000 crowns a month, a family might get a single room in a hostel with a shared kitchen and bathroom or a moldy apartment without windows. This is the same price that would be paid for a standard apartment elsewhere,” Klusáček noted.

The rise in poverty in these municipalities has raised concerns about whether new generations are growing up in entrenched poverty or whether people in need are migrating to these areas. Further analysis is needed to understand the full impact of the so-called poverty business, where a disproportionately poor population is concentrated in certain municipalities, according to the report.

Experts on social issues argue that a comprehensive Housing Act could address the problem of the poverty business. Previous governments have promised such a law, but it has yet to materialize. The government of Prime Minister Bohuslav Sobotka (ČSSD) failed to reach an agreement on the law, and the subsequent cabinet led by Andrej Babiš (ANO) replaced the idea with subsidies and a set of 15 steps that were never fully implemented.

The current five-party coalition government of Prime Minister Petr Fiala (ODS) has committed to passing the Housing Act, but its exact form and how it will be enforced remain unclear. Experts believe that without significant legal reforms, the poverty crisis in these municipalities is likely to worsen, trapping more residents in a cycle of substandard housing and financial hardship.

Source: CTK

Czech and Polish governments to discuss cross-border cooperation, energy, and more in Prague

Today, the Czech and Polish governments are set to meet in Prague for discussions on a range of critical issues including cross-border cooperation, energy security, transport infrastructure, migration, and flood protection. The meeting, known as the Czech-Polish Intergovernmental Consultations, marks the ninth such gathering, with the previous one taking place in Katowice in July last year.

Prime Ministers Petr Fiala of the Czech Republic and Donald Tusk of Poland will lead their respective delegations at the talks, which are aimed at strengthening bilateral ties and addressing shared challenges. The day’s program will begin with a ceremonial welcome in the garden of the Straka Academy at 11:00 a.m. and will be followed by a joint meeting and working lunch at Prague’s Liechtenstein Palace. The consultations will conclude with a joint press conference by both prime ministers.

Among the primary topics on the agenda are cross-border cooperation, particularly in energy security and the development of nuclear energy, reflecting both nations’ efforts to bolster their energy independence amid shifting regional dynamics. Transport infrastructure projects that enhance connectivity between the two countries will also be a major point of discussion, along with migration management and measures for improved flood protection, an issue of growing concern due to climate change.

In addition to these pressing bilateral issues, the governments will also discuss broader geopolitical matters. Support for Ukraine will feature prominently, particularly as Poland prepares to take over the presidency of the EU Council in the first half of next year. Poland’s role in the EU presidency is expected to shape future policies within the bloc, especially regarding the ongoing conflict in Ukraine and broader European security concerns.

The meeting underscores the Czech government’s broader strategy of maintaining regular dialogues with neighboring and allied nations. Recent consultations have been held with the Ukrainian and Israeli governments, though relations with Slovakia have faced difficulties. Earlier this year, the Czech government suspended intergovernmental consultations with Slovakia due to differing views on key foreign policy issues, particularly regarding Ukraine.

As today’s meeting unfolds, the discussions between the Czech and Polish governments are expected to further strengthen their cooperative ties and address key challenges that affect both nations and the region as a whole.

Source: CTK

GARBE sells logistics centre in Erding to Nuveen Real Estate

GARBE Industrial Real Estate GmbH has sold a state-of-the-art logistics property in Erding, near Munich, to Nuveen Real Estate, a US-based real estate investment manager.

The property, which was completed in 2022, covers approximately 7,300 square metres and is fully occupied under a long-term lease by a global blue-chip company. It holds a prestigious DGNB Gold certification, reflecting its high environmental standards. Although the sale price remains undisclosed, the transaction adds significant value to Nuveen Real Estate’s European logistics portfolio.

Jan Philipp Daun, Managing Director of GARBE, emphasized the strategic importance of the Munich area as a prime logistics hub in Germany, driven by high levels of industrialization and strong demand for modern logistics facilities. “The availability of new logistics developments is extremely limited, as greenfield land for such projects is nearly exhausted. The growing impact of e-commerce further increases demand, and this property was designed to meet those exact needs,” Daun stated.

Dominik Scheidmann, Director of Portfolio Management, Real Estate, Europe, at Nuveen Real Estate, expressed his satisfaction with the acquisition, citing the property’s strategic location and modern specifications. “In today’s challenging market, securing such a prime asset in the Munich region is a win for our institutional clients. The site, fit-out, and environmental credentials align perfectly with our forward-looking logistics strategy for Europe, strengthening the quality and diversity of our portfolio,” Scheidmann said.

The transaction was supported by several advisors: GARBE Industrial was advised by Taylor Wessing (legal) and HLB Stückmann (tax), while Nuveen Real Estate received counsel from Graf von Westphalen (legal), EY (tax), Orange Recon (technology), and environmental consultants Nova Ambiente and TheGreenBlue.

The acquisition marks a significant step in the expansion of Nuveen’s European logistics platform, enhancing its presence in a key logistics region.

Energy efficiency a top priority for 80% of warehouse operators, finds Panattoni report

Panattoni, in collaboration with law firm HFW, tech provider Pledge, and research firm Analytiqa, has released the 2024 European Logistics & Supply Chain Sustainability Report. The study shows that energy-saving solutions remain a top priority for 80% of warehouse operators, underscoring the growing focus on sustainability in logistics and supply chain management.

Key findings include the increasing importance of electric vehicle (EV) charging infrastructure, with 59% of respondents prioritizing EV charging points as standard in new warehouses. However, financial barriers remain a challenge, with two-thirds of companies citing costs as an obstacle to adopting sustainability measures. Despite this, 42% of companies are now willing to pay a rent premium, equivalent to operational cost savings, for sustainable facilities.

Biodiversity around warehouse sites is also gaining attention, with 49% of businesses investing in eco-friendly surroundings. Additionally, technology is playing a crucial role, helping companies manage emissions and enhance sustainability practices. However, over one-third of respondents still see a lack of technology as a barrier to further progress.

As businesses continue to integrate sustainability into their operations, the report highlights a trend toward embedding sustainability targets in contracts. Over 33% of companies now include sustainability goals as formal obligations, with many retaining the right to terminate agreements if these are not met.

Emilia Dębowska, Head of Sustainability Europe at Panattoni, commented: “The challenge of defining or measuring financial returns on sustainability measures has decreased, despite financial constraints and the fact that these efforts often lead to higher investment costs. It may indicate progress in the ability to quantify the benefits of sustainability efforts or to understand the positive impact of the transition over the longer term.”

Although financial constraints persist, with two-thirds of companies facing difficulties, the availability of grants and subsidies is seen as critical to driving future sustainability efforts. The report’s findings reflect a sector that, while increasingly focused on green initiatives, continues to grapple with the challenges of financing and technology.

The 2024 report surveyed 102 senior decision-makers across 16 European countries, offering insights into the ongoing efforts to achieve carbon neutrality in logistics and supply chains.

House prices may outpace earnings growth, but buying conditions are favorable for Romanians

As housing approvals decline and demand rises, the Romanian real estate market is poised for potential price increases that may outstrip average earnings growth. Colliers’ consultants warn that if current trends persist, residential property prices could see a return to double-digit growth, particularly as inflation decreases and wage growth continues.

Despite facing challenges like limited supply and high interest rates, the desire to buy remains strong. “Relative to incomes, Romanians are experiencing one of the most favorable periods in history to purchase a home,” said Gabriel Blăniță, Associate Director of Valuation & Advisory Services at Colliers Romania.

In the first half of 2024, major cities reported a notable rise in residential sales compared to the previous year, with Bucharest seeing a 22% increase. Data from Eurostat indicates that consumer confidence regarding home purchases remains high, although it has slightly declined from record levels. Factors such as accelerating wage growth and anticipated interest rate cuts by the central bank are creating a conducive environment for buyers.

Currently, house prices are rising at a single-digit pace, slightly below the average wage growth of around 13% annually, suggesting improved affordability. However, Colliers reports a decrease in residential project permits across the country, particularly in Bucharest, attributed to administrative issues and cautious developer sentiment.

In 2023, total residential deliveries saw a slight drop from the previous year, with approximately 71,000 units delivered compared to 73,000 in 2022. Interestingly, urban deliveries reached a new record, while rural areas experienced declines.

Preliminary data for 2024 indicates a significant reduction of about 20% in housing completions, with only 26,000 units delivered in the first half of the year, down from 32,000 last year. This slowdown reflects ongoing caution among developers amid economic uncertainties and high interest rates.

Looking forward, economic forecasts for 2024 have been downgraded, with Romania’s growth in the first half of the year falling below 1%. Factors such as decreased private consumption and challenges in key sectors like IT and industrial production are influencing this trend.

While the conditions for long-term growth remain intact, concerns about short-term impacts persist. “The housing market’s resilience could be tested by slowing economic growth and external demand,” Blăniță cautioned. He emphasized the importance of prudence for buyers considering long-term investments in light of these challenges.

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