Salling Group plans ambitious expansion of Netto stores in Poland

The Danish retail giant Salling Group, known for its Netto discount stores, has announced plans to significantly expand its presence in Poland. The company aims to increase the number of Netto outlets by 350, bringing the total to 1,000 by the end of 2028. This ambitious expansion reflects Salling Group’s commitment to deepening its investment in the Polish market and enhancing its service to local customers.

Salling Group’s expansion strategy includes the implementation of its innovative Netto 4.0 concept, which is currently being tested in select stores in Grodzisk Mazowiecki and Borzęcin Mały. The concept focuses on improving the shopping experience with new solutions tailored to meet customer needs. Initial feedback has been encouraging, with positive sales results indicating that these changes resonate well with shoppers.

Since opening its first Netto store in Szczecin in 1995, the chain has steadily grown its footprint in Poland. The growth trajectory accelerated in 2020 when Salling Group acquired 300 Tesco stores and several distribution centers, swiftly converting them to the Netto format. This acquisition significantly increased the total number of Netto stores to over 660 across the country, further entrenching the brand in the Polish retail landscape.

Anders Hagh, CEO of Salling Group, expressed the company’s aspirations for the Polish market, stating, “We have big ambitions in Poland, and the coming years will make us an even more important player for Polish customers. With the goal of reaching 1,000 stores, we aim to enhance our position in the market while ensuring we remain responsive to our customers’ needs through innovative solutions.”

Brian Nyeng Olesen, CEO of Netto Polska, echoed Hagh’s sentiments, emphasizing the importance of customer engagement and the company’s commitment to making Netto the first choice for Polish shoppers. He remarked, “Thanks to our new strategy, we will open 350 new stores across Poland over the next four years, focusing on how we can become even more integral to our customers’ lives.” Olesen highlighted that all new store openings planned for the end of the year will incorporate the new 4.0 concept, aligning with the company’s goal to continuously improve the shopping experience.

In conjunction with its store expansion, Salling Group has unveiled a new business strategy for the years 2025-2028, which includes plans for acquisitions and mergers in existing and new markets. The strategy sets an ambitious goal of achieving an annual turnover of over PLN 57 billion (over DKK 100 billion) while allocating up to PLN 7.5 billion (up to DKK 13 billion) for investments. The company also plans to invest significantly in new systems and solutions to support its 60,000 employees across Denmark, Germany, and Poland.

Salling Group’s CEO underscored the company’s readiness to seize emerging opportunities: “In recent years, we have established a position that enables us to act quickly and confidently. Our goal is to make Salling Group an even larger and more influential player in the retail sector, positively impacting the daily lives of our over 12 million customers each week.” He also emphasized the group’s commitment to giving back to the community through its ownership structure, the Salling Foundation.

Additionally, the company plans to launch the Salling Seeds fund, which will invest PLN 285 million (approximately DKK 500 million) in innovative startups within technology, sustainable development, and retail. This initiative aims to acquire new knowledge and solutions that better serve customer needs.

Currently, Netto operates more than 660 stores in Poland and employs over 9,000 people. Salling Group, which includes notable brands such as Bilka and F-tex, operates a total of 1,746 stores across Denmark, Germany, and Poland. The company reported a turnover of PLN 40 billion (DKK 70 billion) for 2023, positioning itself as a key player in the European retail market. The Salling Group is solely owned by the Salling Foundation, comprising the Kobmand Herman Sallings Fond and the Kobmand Ferdinand Sallings Mindefond, which further underscores the company’s commitment to social responsibility.

Source: Salling Group and ISBnews

Eurozone manufacturing PMI drops to 45 points in September, indicating economic weakness

The Purchasing Managers’ Index (PMI) for the eurozone manufacturing sector fell to 45 points in September, down from 45.8 points in August, according to final data released by S&P Global. This decline reflects ongoing challenges facing the region’s industrial landscape and underscores the mounting economic pressures.

The latest PMI reading not only fell short of August’s figure but also came in below market expectations, which had anticipated a slightly lower value of 44.8 points. After three consecutive months of stability, the HCOB Eurozone Manufacturing PMI has now signaled a notable downturn in the overall condition of factories across the euro area, indicating a clear and accelerated deterioration in economic performance.

September’s PMI represents the lowest level recorded since the beginning of the year and is below the average observed during the current 27-month slowdown in industrial activity. This persistent decline raises concerns about the sustainability of the eurozone’s manufacturing sector amid an increasingly challenging economic environment.

Despite the grim figures, there remains a semblance of optimism among eurozone producers. While the majority of manufacturers forecast growth over the next 12 months, those anticipating a decline still outnumber them. However, the level of optimism has weakened, reaching its lowest point in ten months and falling significantly below the long-term average.

The PMI is a critical indicator for gauging industrial activity, with readings above 50 points suggesting expansion and those below indicating contraction. As the eurozone grapples with these recent developments, the focus will likely shift to how manufacturers can navigate these challenges and whether the outlook for growth can improve in the coming months. The current data suggests that while some optimism persists, the road ahead for eurozone industry may be fraught with difficulties.

Source: PMI and ISBnews

Marktlink Opens First Office in Central and Eastern Europe, Expanding M&A Services in Poland

Marktlink, an independent M&A consulting firm focused on medium-sized enterprises, has officially opened its first office in Central and Eastern Europe, located in Warsaw. This marks the 18th office in Marktlink’s European network, further solidifying the firm’s commitment to providing tailored mergers and acquisitions (M&A) advisory services.

Anna Maria Jędrzejczak has been appointed Managing Partner of the new Polish branch. With extensive experience in the M&A field, Jędrzejczak previously served as M&A Director and co-founded EY’s Trading and Acre Assemblies Team, successfully managing numerous high-profile market transactions for both sellers and buyers.

Founded in the Netherlands in 1996, Marktlink has established itself as a trusted advisor for European entrepreneurs, guiding them through the complex processes of buying and selling businesses. The firm has successfully completed over 1,200 transactions to date and is currently one of the fastest-growing independent M&A advisors in Europe, boasting an international team of 300 specialists across offices in the Netherlands, Belgium, Denmark, Germany, the United Kingdom, Switzerland, and now Poland. Marktlink expects to execute approximately 150 transactions this year.

Managing Partner Ferry Nahon emphasized the strategic importance of Poland in the firm’s expansion plans:
“Independent research shows that 70% of European entrepreneurs plan to sell their businesses in the next decade. Poland is a significant economic player in the region, known for its solid trade relations and a diversified economy that fosters entrepreneurial growth. Our Polish office aims to support SME sector entrepreneurs, tapping into the great development potential of this market.”

Nahon added that Jędrzejczak’s local expertise and deep understanding of the business and investment ecosystem will be crucial to the firm’s success in the region. He stated, “The opening of the Polish office enhances Marktlink’s European presence, allowing entrepreneurs across the continent access to our unique network. Combined with our data-driven approach and extensive transaction experience, we aim to deliver the best possible M&A solutions.”

As Marktlink embarks on this new chapter, the firm is poised to make a significant impact on the Polish M&A landscape, providing valuable support to local businesses navigating the complexities of mergers and acquisitions.

Source: Marktlink and ISBnews
Photo: Managing Partner Ferry Nahon – Marktlink

Czech manufacturing industry declines again in September, continuing downward trend

The Czech manufacturing industry experienced another setback in September, marking a continuation of the sector’s decline that began in June 2022. According to a report by S&P Global, the Purchasing Managers’ Index (PMI) fell to 46 points in September, down from 46.7 points in August. This reading remains well below the 50-point threshold that separates growth from contraction, signaling ongoing struggles for the industry.

Production volumes continued to drop throughout the month, with many companies citing weak demand as the primary cause. However, the rate of decline was slightly slower compared to the overall trend seen in recent months.

In addition to decreased demand, Czech manufacturers faced challenges with extended supply deadlines and rising operational costs. These increases were largely driven by limited availability of materials and escalating transportation expenses. In response, companies began raising the prices of finished products in April 2023 in an effort to offset these growing costs.

The Czech manufacturing sector remains under pressure as it grapples with persistent headwinds, further highlighting the challenges ahead for industry players.

Source: CTK

REAX advisory launches Germany’s first tendering pool for asset managers

a significant development for the real estate investment sector, REAX Advisory GmbH has unveiled Germany’s first tendering pool designed specifically for asset managers. The platform offers a streamlined process for asset managers, investors, and Alternative Investment Fund Managers (AIFMs) to connect and collaborate efficiently.

The newly launched platform allows asset managers to register and present their credentials, offering potential institutional investors or AIF management companies a carefully curated selection of top-tier candidates. Investors, in turn, can customize their search to find asset managers best suited to their real estate investment needs, making the tender process faster and more efficient.

At the heart of the tendering pool is the “REAX Partner Check,” a robust evaluation process that reviews the qualifications and strengths of each asset manager. This assessment not only helps investors find the best match but also provides valuable insights for asset managers to optimize and expand their services.

Annika Dylong, Managing Director of REAX Advisory, highlighted the competitive advantage of the platform:
“The professionalization of partner management in real estate investment is becoming a critical factor. Our tendering pool is the first product tailored specifically for this segment. Having worked with a wide range of asset managers, we can confidently identify the best fit for each portfolio’s unique challenges.”

Her counterpart, Kai Nelson Dreisigacker, also emphasized the growing demand for such a service:
“The experiences we’ve gained from managing asset manager selection for institutional clients have shaped the development of this tendering pool. The interest we’ve received so far validates the need for a platform like this. We welcome other asset managers to join and benefit from the opportunities it offers.”

This innovative solution positions REAX Advisory at the forefront of partner management in real estate investment, providing a vital tool for investors seeking top-quality asset managers to handle their portfolios.

Garbe and Logicenters to develop brownfield site near Ulm

Garbe Industrial Real Estate GmbH, in partnership with Logicenters, the logistics development platform of Nrep, has announced plans to redevelop a 20,000-square-metre brownfield site in Leipheim, Bavaria, located about 30 kilometres northeast of Ulm. The site, formerly part of a military airbase, will be transformed into a state-of-the-art logistics centre with a total area of approximately 11,600 square metres. The project represents a €17 million investment and is slated to begin construction in the second quarter of 2025, with completion expected by mid-2026.

The site, once part of a larger 112-hectare intermunicipal industrial estate known as ‘Areal Pro,’ still contains remnants of its military history, including sections of the old runway. Before construction can commence, the existing structures and foundations will need to be demolished and properly disposed of.

Adrian Zellner, a member of Garbe Industrial Real Estate’s Executive Board, highlighted the significance of revitalizing brownfield sites, stating, “We believe that brownfields hold the greatest potential for future-oriented developments, especially in densely populated areas where available land is scarce. This approach offers new opportunities for innovative projects.”

The new logistics facility will include 10,400 square metres of warehouse space, with an additional 1,200 square metres dedicated to office, social, and auxiliary areas. The development will feature 10 dock levellers, a ground-level sectional door, and parking for 40 cars and two trucks.

Sustainability is a central focus of the project, aligning with modern environmental, social, and governance (ESG) standards. “Brownfields are the future, as they allow us to repurpose sealed land and upgrade it with sustainable technologies,” said Martin Ohly, General Manager of Logicenters Germany. The facility will be powered by renewable energy generated from a rooftop photovoltaic system capable of producing up to one megawatt of peak output. Climate-friendly air heat pumps will be used to heat the building, eliminating the need for fossil fuels, while an energy-efficient LED lighting system will further reduce energy consumption. The developers aim for the project to achieve the prestigious Gold Standard certification from the German Sustainable Building Council (DGNB).

Strategically located near key transportation routes, the logistics centre will have easy access to the A8 motorway, connecting the site to major cities including Ulm, Stuttgart, Augsburg, and Munich. The Leipheim junction, just three kilometres away, provides direct access to the motorway without passing through residential areas. Additionally, the Ulm/Elchingen motorway junction, about 11 kilometres away, connects the site to the A7, Germany’s longest north-south motorway.

CBRE facilitated the acquisition of the brownfield site for Garbe and Logicenters.

This development marks another step in Garbe and Logicenters’ ongoing commitment to revitalizing brownfield sites, making them functional and sustainable for future logistics operations.

HIH Invest acquires logistics development in Idstein for Core Logistik Fund

HIH Invest Real Estate has secured a logistics development project in Idstein, Hesse, for its institutional fund, HIH Deutschland+ Core Logistik Invest. The property, located on a 15,709-square-metre site at Richard-Klinger-Straße 8, is being developed by a joint venture between MB Park Deutschland GmbH and ISARKIES Wohn- und Gewerbegrund GmbH & Co. KG. Construction commenced in mid-2024, with completion expected by the third quarter of 2025.

The development will offer a total of 9,414 square metres of lettable space, including 8,627 square metres of logistics space, 338 square metres of office and social areas, and 449 square metres of mezzanine space. The long-term tenant is Ernst Schmitz Logistics & Technical Services GmbH, a regional logistics company with nine locations across the Rhine-Main region.

Designed with sustainability in mind, the building will be constructed to meet the DGNB Gold Standard. It will feature a photovoltaic system to provide electricity to the tenant, a heat pump for energy-efficient heating, and electric vehicle charging stations for both cars and bicycles. The property will also include attractive social areas for employees and offer 62 parking spaces, eight of which are equipped with electric charging points.

Maximilian Tappert, Head of Transaction Management Logistics at HIH Invest, emphasized the property’s versatility, stating, “The classic layout of the hall makes the property highly suitable for third-party use. The hall can be divided into two sections, allowing the potential for dual tenancy.”

The site’s location within the industrial area of Idstein, with direct access to the A3 motorway and public transport connections, further strengthens its appeal. “The excellent location in the greater Frankfurt am Main area convinced us of the project’s potential,” added Andreas Strey, Co-Head of Fund Management and Head of Logistics at HIH Invest.

The acquisition in Idstein marks the seventh property purchased for the HIH Deutschland+ Core Logistik Invest fund, which targets modern logistics properties with high ESG standards and strong third-party usage potential. The fund aims to build a portfolio valued at over €500 million, with a focus on German logistics hubs and neighboring countries such as the Netherlands, France, and Austria.

Baker Tilly handled legal and tax due diligence for HIH Invest, while JT Solutions and CBRE provided technical and commercial due diligence, respectively. The seller was advised by GSK Stockmann.

Habyt expands to Leipzig, marking presence in 20 European cities

Habyt has announced the opening of its newest development in Leipzig, marking a significant milestone as the company enters its 20th European city. This expansion highlights Habyt’s continued growth across Europe, reinforcing its position as a key player in the flexible housing market.

The new Leipzig development, located in the vibrant Zentrum-Nord district, will encompass 6,200 square meters and offer 185 fully furnished co-living units across 75 modern apartments. These units, ranging from private studios to shared apartments with up to five bedrooms, are designed to cater to the diverse needs of urban professionals. The property will also feature amenities such as a rooftop terrace, a courtyard with an outdoor lounge, and a community space for residents to work, socialize, and relax.

Set to welcome its first residents in December 2024, the Leipzig project is strategically located just five minutes from the city’s main train station, with excellent connections via the nearby Wilhelm-Liebknecht-Platz tram stop. The surrounding area offers a lively mix of shopping, dining, and entertainment options, making it an ideal location for modern urban living.

Patrick Breuer, Habyt’s Expansion Lead for Germany, expressed excitement about the company’s entry into Leipzig: “We are thrilled to introduce Habyt’s flexible living solutions to this dynamic city. With a variety of options, from studios and private apartments to shared co-living spaces, we cater to the needs of today’s mobile and professional lifestyles. This project is a key part of our ongoing global expansion.”

The development is part of a broader project that includes a new Radisson hotel, developed in partnership with FAY Projects GmbH. The five-story building at Berliner Straße 22-30 will offer residents not only high-quality living spaces but also easy access to Leipzig’s major urban hubs.

This latest venture comes on the heels of Habyt’s recent expansions into Brussels and Madrid, as the company continues to bring its innovative housing solutions to new locations across Europe. Already established in Germany’s Top-7 cities, Habyt’s Leipzig launch underscores its commitment to providing modern, accessible, and flexible living spaces for students, young professionals, and urban dwellers alike.

With its expansion into Leipzig, Habyt strengthens its foothold in Europe’s co-living market, continuing its mission to deliver flexible, community-oriented housing in key urban areas across the continent.

Logivest secures 13,000 sqm of logistics space for New Ouda in Wülfrath

Logistics and New Ouda GmbH has secured a long-term lease for nearly 13,000 square metres of space in a newly developed logistics complex in Wülfrath, northwest of Wuppertal. The deal was brokered by Logivest, with the property owned by the Hagedorn Group, which has transformed the former car recycling site into a modern commercial hub.

Located at Dieselstraße 100, the new logistics building offers over 11,000 square metres of warehouse space, approximately 1,300 square metres for office and social areas, and an additional 500 square metres of mezzanine and technical facilities. The property, developed with sustainability in mind, includes plans for a photovoltaic system on the roof, ensuring low ancillary costs for tenants.

New Ouda, which operates multiple sites across Germany and Europe, was seeking a distribution centre with excellent logistical connections. Wülfrath’s strategic location in the Niederbergisches Land region, close to key transport routes such as the A535 motorway, offers easy access to both the Ruhr area and major cities like Düsseldorf and Cologne.

“Wülfrath’s proximity to the Ruhr region and the Rhineland’s key urban centres makes it an attractive logistics location with significant potential,” said Till Conrads, Consultant for Industrial & Logistics Letting at Logivest NRW GmbH.

The site’s rapid availability was crucial for New Ouda, allowing the company to meet high seasonal demand, particularly for Black Friday and Christmas. From the initial inquiry to move-in, the entire process took just two months, allowing New Ouda to quickly establish operations in time for the busy retail season.

This development marks another step in the revitalisation of the former brownfield site, reflecting growing demand for well-connected, sustainable logistics spaces in the region.

HSF System breaks ground on LOGspot Logatec logistics complex in Slovenia

The international construction group HSF System has been appointed as the general contractor for the first building in Slovenia’s new LOGspot Logatec logistics complex. The initial facility, covering 26,000 square meters, marks a significant development for the Slovenian logistics sector. The project is being developed by Slovakian company Atrios.

HSF System, known for its expertise in building logistics facilities across the Czech Republic, Slovakia, Germany, and Austria, is taking on its first project in Slovenia with LOGspot Logatec. “This will be the first logistics facility in Slovenia to achieve BREEAM ‘Very Good’ certification,” said Tomáš Kosa, Director of HSF System’s construction group. He added that the project presents a significant opportunity for expanding Slovenia’s logistics capacity, and the company is eager to bring its expertise to the project’s execution.

The LOGspot Logatec park is strategically located approximately 25 kilometers from Ljubljana and 75 kilometers from the Port of Koper, key logistical hubs for the region. The first warehouse, expected to be operational by the second quarter of 2025, will feature sustainable design elements such as a rooftop photovoltaic power plant and an innovative air exchange system for energy-efficient heating and cooling. The facility will also include charging stations for electric vehicles, further enhancing its green credentials.

Michal Bubán, Managing Partner of Atrios, highlighted the project’s commitment to sustainability. “The LOGspot brand represents our focus on developing modern, Class A logistics facilities in the Central and Eastern Europe (CEE) and South Eastern Europe (SEE) regions,” he said. “Our completed facilities primarily serve companies in logistics, retail, automotive, and FMCG sectors.”

The LOGspot Logatec complex is a key element in the development of the largest industrial zone in Slovenia outside the capital. The municipality of Logatec is supporting the project, which aims to connect two existing industrial areas, providing a modern logistics hub without the need to pass through residential zones. The facility’s direct access to the A1 motorway ensures excellent connectivity for logistics operations.

The first tenant of the LOGspot Logatec complex will be Milšped Slovenia, a leading company specializing in comprehensive logistics solutions for the Slovenian FMCG sector, as well as export, automotive, and trade sectors.

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