Sfinks Polska reports 6.6% revenue growth in Q3 2024, reaching PLN 54.8 million

Sfinks Polska Group, one of Poland’s leading casual dining chains, recorded PLN 54.8 million in revenues from catering sales in the third quarter of 2024, marking a 6.6% year-on-year increase. From January to September 2024, the group’s cumulative catering sales reached PLN 154.3 million, reflecting a 9.2% rise compared to the same period last year.

“The summer season, traditionally a strong period for the restaurant industry, paid off for us again this year,” said Sylwester Cacek, President of Sfinks Polska. He highlighted new restaurant openings, such as the Sphinx in Rzeszów and two locations, The Burgers and Sphinx in Poznań, which contributed to the company’s growth. “We expect their full sales potential to be realized in the fourth quarter,” Cacek added.

However, he noted that September fell slightly short of expectations due to unfavorable weather and the temporary closure of several restaurants for reasons beyond the company’s control. Despite these challenges, the company’s catering network continued to generate higher revenues, both for the third quarter and the year-to-date.

Sales from comparable premises, operating at the end of each month in both the current and previous year’s third quarter, amounted to PLN 51.02 million, a 5.8% increase compared to PLN 48.23 million in Q3 2023. From January to September 2024, sales at these comparable premises reached PLN 143.41 million, up 8.8% year-on-year.

Sfinks Polska’s restaurant portfolio includes both owned and franchised locations, with a total of 76 outlets operating under various brands, excluding the Piwiarnia network, at the end of Q3 2024. Franchisees pay a fee based on sales generated at franchised restaurants, while sales from company-owned locations contribute directly to the group’s revenues.

Sfinks Polska remains the largest casual dining chain in Poland by sales volume and number of restaurants. It is also ranked as the third-largest restaurant chain in the country by revenue. The company has been listed on the Warsaw Stock Exchange (WSE) since 2006.

Source: Sfinks Polska and ISBnews

Middle East tensions weaken Polish zloty, analysts report

The ongoing geopolitical tensions in the Middle East have driven investors away from riskier assets, leading to a weakening of the Polish zloty (PLN). Analysts at Ebury, including Enrique Díaz-Alvarez, Matthew Ryan, Roman Ziruk, and Michał Jóźwiak, reported that the zloty depreciated by almost 1% against the euro (EUR) over the past week. However, despite the decline, the EUR/PLN exchange rate remains only slightly above 4.30.

The zloty’s downturn follows a difficult week for currencies across the region. Rising tensions in the Middle East caused a flight to safer assets, benefiting the U.S. dollar (USD) in particular. Ebury’s analysts noted that the strong performance of the USD was driven not only by geopolitical factors but also by a robust U.S. jobs report, which exceeded market expectations.

Key Factors Driving the Zloty’s Weakness:

1. Geopolitical concerns in the Middle East prompted investors to flee risky assets.
2. A stronger-than-expected U.S. non-farm payrolls (NFP) report bolstered the USD.
3. The combination of these factors put downward pressure on the zloty.

In addition to the Middle East tensions, the U.S. dollar strengthened against other G10 currencies, while the British pound (GBP) faced a slight decline after dovish comments from Bank of England Governor Andrew Bailey. Despite these movements, Latin American currencies, particularly the Mexican peso, benefited from rising oil prices and distance from the geopolitical unrest.

Focus on Inflation and Interest Rates
Looking ahead, inflation data will be closely watched. On Thursday (10.10), the U.S. Consumer Price Index (CPI) report for September will be released, which could influence the Federal Reserve’s decision on interest rates at its November meeting. Markets are currently expecting a 25 basis point (bp) rate cut, but the inflation report could sway expectations. Investors will also be monitoring eurozone retail sales and UK GDP data, though these are not expected to significantly impact markets.

Polish Zloty Struggles Amid Global Uncertainty
Last week proved challenging for emerging market currencies, including the zloty. The Polish currency fared worse than most, except for the Hungarian forint and South Korean won. External factors, particularly the risk-averse sentiment due to the Middle East crisis and shifts in U.S. interest rate expectations, have been key contributors to the zloty’s weakness. Despite this, the EUR/PLN exchange rate remains relatively stable at just over 4.30.

Domestically, the National Bank of Poland (NBP) held interest rates steady. NBP President Adam Glapiński’s press conference, following the decision, took on a more dovish tone, even as inflation rose to 4.9% in September. Analysts suggest the central bank may lean towards a rate cut in the coming months, though significant uncertainty remains.

Eurozone and U.S. Economies Show Diverging Paths
The eurozone saw another low inflation reading last week, reinforcing expectations that the European Central Bank (ECB) may cut rates at its next meeting on October 17. Markets are anticipating a series of rate cuts through 2025, though analysts caution that further deterioration in economic activity could speed up the pace of easing.

In contrast, the U.S. economy appears to be on a stronger footing. The September NFP report exceeded expectations in terms of job growth, wage increases, and lower unemployment, boosting confidence that the Federal Reserve may achieve a “soft landing” for the economy, reducing inflation without triggering a recession. This scenario has strengthened the dollar and raised the likelihood of a gradual loosening of monetary policy.

British Pound Faces Temporary Setback
The British pound’s two-year appreciation slowed last week after Bank of England Governor Andrew Bailey suggested that the central bank might cut interest rates more aggressively if inflation continues to decline. Although this caused a temporary dip in the pound, analysts believe Bailey’s comments were more of a warning than a signal of immediate action.

Despite the short-term decline, the pound remains the best-performing G10 currency of the year. August GDP data, due on Friday (11.10), is expected to show that demand in the UK remains relatively resilient compared to the eurozone, which could help the pound recover unless overshadowed by developments in the Middle East.

As geopolitical tensions and economic data continue to unfold, currencies, particularly in emerging markets, remain vulnerable to shifts in investor sentiment. The zloty’s performance, along with other currencies, will likely hinge on the evolving global landscape.

Source: Ebury and ISBnews

6.7 Million Attend Munich’s Oktoberfest, Fewer Than Last Year

The Munich Oktoberfest wrapped up its 16-day celebration today, drawing 6.7 million visitors, according to preliminary figures released by festival organizers. Attendance was down from last year, when 7.2 million people attended the festival, which ran for two extra days. This year’s visitors consumed approximately seven million liters of beer, slightly less than the previous year.

“Oktoberfest was particularly relaxed this year,” said festival chief Clemens Baumgärtner. He noted that despite the large crowd, there were fewer crimes and medical emergencies compared to previous years. Police reported a 25% decrease in crime, while health officials registered nearly 30% fewer patients requiring treatment.

The festival took place under heightened security measures following a terror attack in Solingen in August, in which a Syrian asylum seeker killed three people and injured eight others. Additionally, just before the start of Oktoberfest, an Islamist attacker from Austria targeted the Israeli Consulate General and Munich’s Documentation Centre for the History of Nazism. In response, Bavarian authorities introduced random entry checks, including metal detector searches. A force of 600 police officers and 2,000 private security personnel ensured the safety of festivalgoers. Fortunately, no major incidents were reported.

Oktoberfest continued to draw a global audience, with tourists flocking in from the U.S., Italy, Britain, Austria, Poland, France, and for the first time, a significant number of visitors from India.

Though the festival saw fewer visitors this year, organizers attribute the decline partly to weather conditions. The first week of Oktoberfest was sunny and warm, while the second week saw cooler temperatures and heavy rain. This year also marked the first time beer prices crossed the EUR 15 mark, with a glass costing between EUR 13.60 and EUR 15.30 (CZK 341 to 384). Despite the price hike, consumption of non-alcoholic beer remained at four to five percent of total beer sales, while food consumption rose by nine percent.

A notable aspect of this year’s festival was the reduction in thefts of the traditional Oktoberfest mugs, or “tuplas.” Security managed to prevent the theft of 98,000 mugs, compared to 115,600 last year.

Unlike previous years, this edition of Oktoberfest did not feature a standout musical hit. Last year, the crowd’s favorite was the Italian song Sará perché ti amo by Ricchi e Poveri. This year, the most frequently played songs were Taylor Swift’s Shake It Off and Coldplay’s Viva La Vida.

The festival’s lost-and-found department had its hands full, recovering 700 wallets, 500 IDs, 315 mobile phones, 450 credit cards, and 150 sets of keys, along with unusual items such as five wedding rings and a pair of metal handcuffs.

The Oktoberfest tradition dates back to 1810, when Crown Prince Ludwig of Bavaria and his bride, Princess Therese of Saxony-Hildburghausen, celebrated their marriage with a horse race in a meadow outside Munich. The event was such a success that it became an annual festival. Even after its start was moved to September for better weather, the event retained its original name. This year marked the 189th edition of the world-famous beer festival.

Source: CTK

KRUK S.A. leases 6,000 sqm in Wroclaw’s B10 complex

KRUK S.A., a European debt management firm, has secured 6,000 square meters of office space in the newly developed B10 office-hotel complex in Wroclaw, owned by Vastint Poland. The leasing process and office fit-out were facilitated by consulting firm Walter Herz, which provided comprehensive support to KRUK throughout the transaction.

Tomasz Ignaczak, General Director of KRUK S.A., highlighted the need for workplace optimization and improved standards as key factors in choosing the B10 complex. “We sought a space that encourages team collaboration while offering comfortable conditions for working with clients and partners. B10’s location, high-standard facilities, and ESG-compliant certification made it the ideal choice,” said Ignaczak.

KRUK, founded in Wroclaw in 1998, is a leader in debt management across seven European countries. The company’s move to B10 aligns with its continued growth and focus on creating modern, functional workspaces for its team.

Vastint Poland’s Senior Leasing Manager, Marek Ulanecki, expressed satisfaction with the partnership. “B10 attracts top companies with its state-of-the-art amenities. We are delighted that KRUK has chosen our complex and hope their new office supports their future success.”

Walter Herz played a critical role in the leasing process. According to Mateusz Strzelecki, Partner/Head of Tenant Representation at Walter Herz, the firm’s involvement included financial and technical analyses, negotiations, and project management. “We aimed to secure an optimal space and eliminate additional costs for KRUK, which we successfully achieved through detailed planning and negotiations.”

The B10 complex, located in Wroclaw’s western business district, offers 20,000 square meters of office and hotel space. Designed with a Scandinavian aesthetic, the six-storey building features modern architecture, LEED v4 Platinum certification, and eco-friendly solutions. The complex includes a hotel, green relaxation areas, and proximity to Magnolia Park shopping center and the Wroclaw Mikolajow train station.

Vastint Poland, part of the Vastint Group, has been active in European real estate for over 30 years, specializing in office, residential, and hotel development.

Develia sells 2,700 units in first three quarters of 2024, exceeding previous year’s record

Develia has reported the sale of 2,700 units in the first three quarters of 2024, marking a 31% increase compared to the same period last year, which was already a record year for the developer. By the end of September, Develia had handed over 1,798 units, a 39% rise from the 1,298 units delivered in 2023.

The company’s sales included 59 units from joint projects with Grupo Lar Polska. In the third quarter alone, Develia sold 751 units, down from 875 in Q3 2023, but remained on track to meet its annual sales target of 2,900 to 3,100 units.

“We are pleased with our performance despite the challenging market conditions and expect to meet or exceed our target,” said Andrzej Oślizło, President of Develia. “In the coming months, we’ll focus on housing handovers and preparing an attractive offer for 2025.”

The Centralna Park and City Vibe projects in Kraków and Bemosphere in Warsaw were among the top sellers in Q3. Develia handed over 741 units between July and September, a 17% increase from the same period last year. With a large number of handovers scheduled for Q4, Develia expects a strong year-end boost to its 2024 results.

Photo: Rokokowa Vita, Develia

P3 promotes Jan Andrus to Head of Leasing and Business Development in the Czech Republic

P3 Logistic Parks has promoted Jan Andrus to Head of Leasing and Business Development for the Czech Republic, reinforcing the company’s dedication to enhancing client service and expanding its market presence. Andrus, who has led the leasing department for the past three years, will now also oversee business development and the identification of new opportunities.

“This promotion reflects our focus on delivering strategic real estate solutions that foster long-term client success,” said Peter Jánoši, Managing Director of P3 Czech Republic and Slovakia. “Jan’s leadership and vision make him the ideal person to lead both leasing and business growth in the Czech Republic.”

With over a decade of experience at P3 Logistic Parks, Andrus has played a pivotal role in managing the company’s leasing activities in the Czech market. His expanded role now includes overseeing speculative developments and spearheading business initiatives, with a focus on addressing client needs and offering customized solutions.

“I’m excited to take on this new role and continue contributing to P3’s growth,” said Andrus. “Our priority remains understanding client requirements and delivering solutions that help them reach their business goals.”

Andrus began his career in logistics and industrial real estate at P3, drawing on previous experience in residential and retail projects. His expertise will be key as the company continues to grow its portfolio of showrooms and sales warehouses.

AFI Europe and FINEP sign major agreement to boost rental housing development in Prague

AFI Europe has entered into a long-term partnership with Czech real estate company FINEP to expand rental housing in Prague. Under the new framework agreement, AFI Europe plans to purchase up to 1,728 apartments across five key locations in the city: Barrandov, Opatov, Západní Město, Harfa, and Poděbradská. This collaboration builds on the companies’ previous successful projects and aims to address the high demand for affordable rental housing in the Czech capital.

“Rental housing is essential for housing affordability in Prague,” said Tomáš Pardubický, CEO of FINEP. “Although selling properties for ownership may be more lucrative right now, the development of a strong rental stock is crucial for long-term market stability.”

Doron Klein, Deputy CEO of AFI Europe Group, emphasized the strategic importance of the agreement. “This partnership with FINEP is a key step in expanding our rental housing portfolio, not just in Prague but across the Central and Eastern Europe (CEE) region. We’re committed to delivering quality, accessible housing in fast-developing areas like Barrandov and Harfa.”

Construction of the first units is set to begin between 2025 and 2026, with homes expected to hit the market by 2027 and 2028. The apartments will vary in size, averaging 55.3 square meters, and range from smaller 50-unit buildings to larger developments exceeding 500 units.

Both companies stressed that their collaboration is built on mutual trust and respect, which they see as critical to meeting Prague’s housing challenges.

Art-Invest Real Estate acquires the “Courtyard by Marriott” hotel in Vienna

Art-Invest Real Estate has acquired the Courtyard by Marriott Prater Vienna/Trade Fair from Deka Immobilien. The building has 251 rooms, a bar and restaurant area, several conference rooms and a fitness and sauna area. The property owns an “Excellent”-certification with the British BREEAM seal of approval for sustainable construction. The hotel is successfully operated by the Borealis Hotel Group under a long-term lease agreement.

The hotel’s location in the “Viertel Zwei” district is characterized by a diverse mix of demand generators, to which the hotel concept is perfectly tailored in order to appeal to a wide audience. The property has excellent connections to Vienna’s city center, both by car and by public transport. In addition, the location scores points thanks to the presence of numerous well-known companies, its location in the Prater Vienna and its proximity to the trade fair, the Ernst-Happel-Stadium and the Vienna University of Economics and Business. In combination with the well-known Courtyard by Marriott brand, a diverse target group of business and leisure tourists can be addressed.

Dr. Peter Ebertz, Managing Director at Art-Invest Real Estate, comments on the acquisition: “With the acquisition of the Courtyard by Marriott, we are expanding our portfolio with an established hotel with a balanced demand mix in a very good location in Vienna. With our active investment approach, we want to leverage various potentials for long-term value appreciation. We are also strengthening the international focus of Art-Invest’s hotel activities, which we will continue to expand.”

Mark Leiter, Managing Director at Art-Invest Real Estate, adds: “We are delighted that this acquisition has enabled us to add the hotel asset class to our existing office and residential real estate portfolio in Vienna. Austria is a very attractive market for us.”

The hotel was acquired as part of a share deal for the core budget hotel fund and represents the fund’s first investment in the Austrian market. The plan is to keep the property in the portfolio for the long term. The parties have agreed not to disclose the purchase price.

Art-Invest Real Estate was legally advised by Barnert Egermann Illigasch Rechtsanwälte GmbH and Forvis Mazars GmbH & Co. KG, technical advice from DELTA Projektconsult GmbH and commercial advice from Hotour Hotel Consulting. This transaction was brokered by EHL Investment Consulting GmbH.

PAMERA expands to North America: First deal successfully closed in Manhattan, New York City

The multi-family office PAMERA Real Estate Partners (PAMERA) is expanding into North America and has founded PAMERA North America LLC (PAMERA NA) based in New York City. The company focuses on actively supporting German family offices and wealthy private investors with investments in the North American real estate market and accompanying them along the entire value chain.

PAMERA NA is currently focusing on the targeted acquisition and development of real estate in dynamic markets such as New York City, Boston and the Sunbelt states, which are characterised by robust economic data and long-term growth potential. These regions offer excellent conditions for value-adding investments.

The focus is on residential and logistics properties, which are optimised through location advantages and targeted development measures such as renovations and repositioning. The aim is to generate stable and sustainable income and to fully exploit the development potential of the properties.

Karl Groß von Trockau, Managing Partner of PAMERA, describes the investment strategy of PAMERA North America as follows: “With co-investments, ‘hands-on’ asset management and a data-driven decision-making process, we ensure alignment of interest with our investors. Active portfolio management and transparent communication are at the heart of our business, which is specifically tailored to the needs of German investors.”

PAMERA NA is headed by Cord Ernst and Adam Budgor, two experts with extensive experience in the US property sector.

As Managing Partner, Cord Ernst is responsible for investments, conceptualisation and investor relations. At the same time, he is responsible for a residential fund for German institutional investors as a partner together with Magnolia Capital. He began his career at HQ Capital / RECAP and subsequently held management positions at the Paramount Group and Wafra, where he focussed primarily on transactions and fund conception. With some 20 years of professional experience in New York City and a broad network of local partners, he has successfully completed transactions totalling more than USD 5 billion. His in-depth knowledge of the market and his role on the Urban Land Institute’s Multi Family Council emphasise his leadership qualities.

Adam Budgor is in charge of Investments and Operations at PAMERA NA. He brings over 18 years of experience from various senior positions in the property industry, including Chief Investment Officer at CCL Capital and Chief Strategic Officer at a portfolio company of Apollo Global Management. Adam previously worked in the investment banking divisions of Credit Suisse, Barclays and Lehman Brothers, where he was involved in transactions worth over USD 75bn. With his expertise in structured real estate finance and an MBA from Columbia Business School, Adam Budgor adds valuable strategic and operational expertise to the team.

“Our approach in North America is also based on managing property from the owner’s perspective,” explains Karl Groß von Trockau. “In Cord Ernst, our Managing Partner in New York, and Adam Budgor, we have found two property experts who not only understand the American property market very well, but also the needs of our family office clients,” continues Karl Groß von Trockau.

As part of an off-market transaction, PAMERA NA acquired a prestigious mixed-use property in the centre of New York’s SoHo district for around USD 30 million in a joint venture with Drake Real Estate Partners back in spring 2024. The property on Crosby Street comprises eight luxury rental flats, two commercial units and a prominent advertising space on the outside wall.

PAMERA plans to leverage existing potential for value appreciation through targeted measures. Three new rental agreements with an average rent increase of 4.1 percent have already been concluded and a long-term retail rental agreement has been signed with the luxury brand Spinnelli Kilcollin.

“With this transaction, we have proven that PAMERA NA is not only able to react quickly and efficiently to opportunities, but also to increase the market value of a property in the interests of our investors within a short space of time. We will continue to implement this strategy consistently. Further acquisitions are already in the concrete due diligence phase,” explains Cord Ernst.

Photo: Cord Ernst and Adam Budgor, PAMERA NA

CAERUS advises on whole-loan-financing in Munich

CAERUS Debt Investments AG (CAERUS) has advised a London-based multi-strategy fund on the structuring and issuance of a whole-loan financing for the development of a commercial property in the heart of Munich.

The first-ranking loan, amounting to a low three-digit million figure, will finance the acquisition and construction of a pioneering, sustainable, LEED-certified office and retail property in Munich’s city centre.

Peter Anthuber, CIO of CAERUS, commented: “In the current market environment, structuring a whole-loan for a development of this scale is a challenge. We are therefore particularly pleased to have supported this successful financing. Overall, we are seeing significant interest from Anglo-Saxon investors in capitalizing on the opportunities arising from the current market conditions and placing private debt in Germany under attractive terms.”

« Previous 1 … 363 364 365 366 367 … 372 Next »

Latest news

All posts by fletcher@cijeurope.com.