CTP breaks ground on new 46,600 sqm logistics park in Toruń, Poland

CTP has officially begun construction on a new 46,600 square meter logistics park in Toruń, Poland. Situated on over 14 hectares of land, adjacent to key transportation routes, the development will feature two facilities designed to meet the needs of small businesses and global corporations alike.

The new logistics park, named CTPark Toruń, will offer flexible lease modules for a range of tenants. These include CTBox — a 950 sqm space tailored for small businesses, CTFlex — customizable spaces for specific tenant needs, and CTSpace — larger warehouse centers exceeding 3,500 sqm. The first phase of the project is expected to be completed by the end of 2025.

Piotr Flugel, Managing Director of CTP Polska, highlighted the significance of the project as part of CTP’s expansion strategy in Poland. “Since the beginning of this year alone, we’ve acquired 720,000 sqm of land, including the plot for CTPark Toruń. The development will accommodate start-ups, light manufacturing, and logistics operations, offering businesses an integrated, multifunctional space in a prime location. There’s a growing demand for such adaptable spaces in urban areas, and this project aims to meet that need.”

The investment is strategically located on the route of one of the corridors of the Trans-European Transport Network (TEN-T), which aims to improve multimodal transport integration across Europe. This positioning not only supports the region’s logistical needs but also enhances sustainable transport solutions in line with EU guidelines. CTP plans to leverage these advantages to create new employment opportunities in Toruń.

Łukasz Szarszewski, Director of the Business Support Centre in Toruń, emphasized the city’s attractiveness as a business hub. “Toruń is an ideal place to live, work, and invest. Its continued development and focus on young people and business make it the perfect location for CTP’s newest investment. The flexible business park will support the city’s vision as a creative and entrepreneurial community,” he stated.

CTPark Toruń will align with the city’s ambition to become a European development hub, fostering innovation and sustainable growth. The development is designed with sustainability in mind, incorporating energy-efficient solutions such as increased thermal insulation, natural light sources, and photovoltaic installations on the building roofs. These features will help reduce energy consumption and emissions, contributing to the park’s environmental goals.

Sandra Winiarska, Business Developer at CTP Polska, explained, “The new complex will meet the highest sustainability standards, making it a forward-thinking solution for businesses seeking energy-efficient and eco-friendly spaces.”

The first tenants are expected to begin moving into the park by the end of 2024, marking another milestone in CTP’s commitment to expanding its presence in Poland and meeting the growing demand for modern industrial and logistics facilities.

Prague advances multifuntional project for new urban district at Nové Dvory

At a City Council meeting on Monday, 30 September, the Prague City Council took a significant step forward in the investment preparation of a major multifunctional project in the heart of the new Nové Dvory urban district in Prague 4. The project, which includes two buildings — Nové Dvory Vestibule South (Project 1a) and Nové Dvory Vestibule North (Project 1b) — is set to be developed directly above the new D line metro station, with its basements housing the metro entrances.

The buildings will focus on urban affordable housing, civic amenities, and a community and cultural hall, serving as key elements of the evolving Nové Dvory district. The Prague Development Company (PDS) will soon launch a tender for a design contractor to further develop the detailed design of both buildings.

Deputy Mayor Alexandra Udženija expressed the council’s commitment to expanding affordable housing in Prague. “We promised the people of Prague that we would get the construction of affordable housing moving, and today’s approval is proof that we are delivering on that promise,” she stated. She added that the new district will also offer essential amenities such as schools, nurseries, health facilities, and public spaces, aiming to benefit both current and future residents.

The overall development of Nové Dvory will cover 15 hectares of urban land, providing nearly 300,000 square meters of space primarily for urban rental housing, which will create around 2,000 apartments. In addition, approximately 130,000 square meters will be allocated for offices, restaurants, cafes, and shops, generating up to 5,000 new jobs. The district will also include a kindergarten, primary and secondary schools, a cultural center, and sports facilities. Construction of a new metro station and tram extension is underway, and the full development of the district is expected to take 10 to 15 years.

“The project is designed to be a sustainable urban center,” said Petr Hlaváček, Deputy Mayor for Strategic and Territorial Development. “The aim is to create a space that integrates housing, work, and recreational amenities, all within easy access to public transport.”

Petr Urbánek, Director of the Prague Development Company (PDS), emphasized that the multifunctional buildings, located above the Nové Dvory metro stop, will host retail spaces, administration offices, and social and cultural centers, alongside urban rental housing. “This is the initial and central hub of the new urban district,” he added.

Project Breakdown:

• Nové Dvory Vestibule South (Project 1a)
• Gross Floor Area (GFA): 86,400 m²
• Administration: 49,100 m²
• Retail: 23,150 m²
• Residential: 11,900 m²
• Cultural Center: 2,250 m²
• Underground parking: 1,500 spaces
• Nové Dvory Vestibule North (Project 1b)
• GFA: 8,500 m²
• Administration: 7,800 m²
• Retail: 700 m²
• Underground parking: 110 spaces

New Urban District: Nové Dvory

Nové Dvory is situated on the border of Prague 4 and Prague 12. In May 2024, Prague’s City Council approved an amendment to the zoning plan, allowing for a significant increase in building capacity around the future Nové Dvory metro station. The development will consist of up to 2,000 urban apartments and mixed-use buildings above the metro station, combining housing, office spaces, retail, and community services. The development is expected to create space for up to 5,000 new residents and 5,000 new jobs.

A Sustainable Vision for Nové Dvory

The urban study prepared by UNIT architects in 2021 outlines four key aspects of Nové Dvory’s development: social, economic, environmental, and cultural sustainability.

• Social: The development will create an inclusive community with affordable housing aimed at professionals such as teachers, healthcare workers, and police officers, along with provisions for single parents and seniors.
• Economic: The project will support economic growth by offering office and retail spaces in the district, generating rental income to help offset public investments.
• Environmental: The design incorporates green infrastructure, such as rainwater capture and green spaces, and promotes the use of public transport, with new metro and tram services.
• Cultural and Educational: Cultural amenities, including a cultural center, schools, and sports facilities, will support the community’s social and recreational needs. Additionally, restaurants and cafes will provide local dining options for residents and visitors alike.

The transformation of Nové Dvory into a vibrant urban center is set to provide Prague with much-needed affordable housing while fostering sustainable growth and creating a balanced environment for work, recreation, and community living.

Czech government to amend law amid construction digitization issues, economic losses expected

The Czech government is preparing an amendment to the law that would allow building authorities to revert to systems used prior to the recent digitization of the construction process, which has faced widespread criticism. Vice-chairman of the ODS and Finance Minister Zbyněk Stanjura confirmed that the amendment, which will not be presented as a government proposal for fast approval but as a parliamentary amendment, will be ready by next week.

The digitization of the construction industry, introduced in July, has been marred by operational issues that are causing significant financial strain. Analysts estimate that these complications could lead to losses of up to CZK 15 billion in the second half of this year, with the potential for damage to reach CZK 40 billion in 2024 if not addressed swiftly.

While the amendment will restore the previous systems temporarily, it is unlikely to be a complete return to pre-digitization methods. Stanjura explained that although the old systems would be reinstated for now, a full reversion is not feasible. Transport Minister Martin Kupka has said that by mid-October, the government will propose additional steps, with the eventual goal of having a more functional digitized system in place within 12 to 18 months.

The issue has put additional pressure on the government, especially Prime Minister Petr Fiala, who had previously proposed the dismissal of Deputy Prime Minister for Digitization and Minister for Regional Development Ivan Bartoš due to the problems with the digital system. The opposition, including the ANO party, has been vocal in calling for a return to the original systems, citing inefficiencies and delays caused by the new digitization.

The Czech government introduced the digitalization initiative as a part of efforts to streamline the construction permitting process, but the transition has been less than successful. Building authorities and municipal offices have faced major difficulties adapting to the new systems, and delays in processing building permits have already affected the construction sector.

According to Radim Dohnal, an analyst from Capitalinked, the digitization failures could reduce the number of building permits issued by 5 percent in the second half of 2023 and by as much as 8 percent in 2024. This reduction in construction activity could impact the country’s GDP by CZK 15 billion in the latter half of this year and CZK 40 billion next year.

Economists, including Pavel Sobíšek from UniCredit and Petr Dufek of Creditas Bank, have cautioned that the impact of the digitization failure cannot be fully assessed yet. They argue that the full financial effect may not be clear until the end of the year, as many applications for permits may have been moved up to earlier quarters.

The situation is concerning, as the digitization of the construction process was initially meant to expedite the granting of building permits and enhance efficiency in the sector. However, the poor performance of the system in its current form has led to mounting concerns over its long-term effectiveness.

Štěpán Křeček, an economist and adviser to the Prime Minister, warned that the losses from the failed digitization could continue to grow if the issue is not addressed swiftly. He suggested that the original systems, which are more reliable, should be reinstated until a functional digital solution can be fully implemented. The government’s goal is to have the new digitization system operational within 12 to 18 months, though this timeline extends beyond the next parliamentary election, which is expected in 2025.

In summary, the Czech government faces significant challenges as it tries to address the ongoing issues with construction digitization. While interim solutions are being proposed, the long-term success of the digitization project remains uncertain, and the sector is grappling with mounting losses and delays.

Source: CTK
Photo: Zbyněk Stanjura – Vice-chairman of the ODS and Finance Minister

Czech real estate market stabilizes as apartment prices remain stable and house prices drop

In September, the Czech real estate market saw little change in apartment prices, while family houses experienced a decline. According to a recent analysis by Valuo, apartment prices were virtually unchanged month-on-month, while family houses saw an average price drop of 2.6 percent compared to the previous year. Despite the drop in house prices, rents have continued to rise, increasing by 4.5 percent year-on-year.

The analysis indicates that the Czech real estate market is in a state of stabilization. Mid-sized apartments that were not newly reconstructed recorded the largest year-on-year price increase, rising by 0.7 percent. Small apartments in new buildings also saw a price bump of over 0.5 percent. In contrast, large apartments in very good condition experienced the smallest rise, with a 52.5 percent increase over the last four years.

Family houses, particularly those in need of renovation, have not yet fully recovered from the price drops experienced since mid-2022. Homes requiring reconstruction saw price declines, with small houses falling by 5.7 percent and large houses by 5.3 percent compared to the same time last year. However, new homes fared better: prices for new medium-sized homes rose by 1.5 percent and large new homes increased by 2.4 percent. Notably, new small houses saw a substantial price rise of 73 percent since 2020.

Rental prices, on the other hand, have been steadily increasing across all types of housing. The largest year-on-year growth in rent was recorded in small apartments in very good condition, which saw an increase of 5.5 percent. Rents for small apartments in good condition also rose by 5 percent year-on-year. In contrast, large apartments in new buildings saw a smaller rental price increase of 3.9 percent.

The analysis also highlighted that the gap between the initial asking price and actual sales price for apartments has decreased in 2024. The difference between the first bid and final sale price dropped from 8.4 percent last year to 4 percent this year. Similarly, the difference between the last bid and sales price fell from 2.6 percent to 1.5 percent.

The trend of rising rental prices across all housing categories is expected to continue. Small apartments in good condition, for instance, have seen a 25.8 percent increase in rental prices since January 2020, while medium-sized new apartments saw a 24 percent rise during the same period.

Deloitte’s latest data also shows a 4 percent increase in apartment prices in the first quarter of this year, with the average price reaching CZK 99,300 per square meter. Additionally, rents rose by 3.4 percent quarter-on-quarter in the second quarter, reaching an average of CZK 305 per square meter.

FérMallé.cz reported that older family homes that underwent reconstruction in the second quarter increased by an average of 3.1 percent year-on-year, with the average square meter price reaching CZK 38,571.

In summary, while apartment prices have remained stable in recent months, family homes—especially older ones—have seen price reductions. However, rental rates continue to rise, signaling ongoing demand for rental properties across the country.

Source: Valuo, Deloitte, FérMallé.cz and CTK

German government to downgrade economic growth forecast

The German government is preparing to revise its economic outlook for 2024, with expectations of no growth this year, according to a Bloomberg report citing sources familiar with the matter. Germany, the largest economy in Europe, experienced a decline in gross domestic product (GDP) last year, and the revised forecast is set to reflect further economic stagnation.

The updated outlook is scheduled for release next Wednesday. In its previous forecast, issued in April, the government had predicted a modest 0.3 percent GDP growth for 2024. However, sources indicate that the new assessment will likely reflect stagnation at best, and Germany’s leading economic institutes recently predicted a contraction of 0.1 percent in GDP for the year.

As Germany is the Czech Republic’s largest trading partner, the economic slowdown poses a significant concern for Czech companies that rely heavily on the German market.

This downgrading of economic expectations comes as a blow to Chancellor Olaf Scholz and his coalition government, particularly with general elections looming in 2025. Voters have already shown discontent with the current administration, as reflected in the June European Parliament elections and the September regional elections in the eastern German states of Saxony and Thuringia.

Source: CTK

Galeria Łomianki expands health and beauty offering with new Rossmann drugstore

Galeria Łomianki, a popular local shopping destination near Warsaw, has expanded its health and beauty segment with the opening of a new Rossmann drugstore. The 640-square-metre store officially opened its doors on September 21, offering customers a wide range of personal care, beauty, and household products.

The facility, owned by Ceetrus Polska, has become a go-to spot for local shoppers seeking fashion, groceries, home goods, and services, as well as an array of special events for all ages. The day-to-day management and commercialisation of the shopping centre is handled by Nhood Services Poland, ensuring a smooth operation and continuous tenant collaboration.

With the introduction of Rossmann, the shopping centre has bolstered its appeal in the health and beauty segment. The new drugstore brings a wide variety of products, including body, hair, and face care items, colour cosmetics, hygiene products, and household cleaning solutions. In addition, the store stocks a comprehensive selection of children’s products and groceries. Seasonal offerings, home decorations, and imaginative gift sets are also available, making it a one-stop shop for essential and specialty items.

Rossmann is a leader in the Polish drugstore market, with nearly 1,900 locations nationwide and over 17,500 employees. The brand attracts over 1 million Polish customers daily and offers an impressive range of 21,000 products, introducing 7,000 new items annually.

The Rossmann store marks the second prominent brand to join the tenant lineup at Galeria Łomianki in 2024, following JYSK’s arrival earlier in the year. With its expanding offerings and strategic location near Warsaw, Galeria Łomianki continues to be a dynamic hub for retail and services.

ATAL launches new residential project in Kraków: Akacjowa Wita

ATAL has officially launched its latest residential project, Akacjowa Wita, in the vibrant city of Kraków. The development comprises two five-storey buildings featuring 100 flats and two retail units, strategically located near Bora-Komorowskiego Avenue. This prime location offers residents excellent communication links and easy access to a wide array of local amenities.

Agnieszka Majkusiak, Sales Director at ATAL, commented on the project’s prime location, saying, “We are expanding our Kraków portfolio with a project in a very desirable area, popular due to its excellent connections to key city points and the variety of services available in the vicinity.”

The flats range in size from 30 to 88 square metres, offering one to four-room layouts. Prices for the units range from PLN 14,200 to PLN 18,300 per square metre in developer condition. For those looking for a more personalized touch, ATAL offers its “Design by ATAL” turnkey finishing programme, allowing buyers to choose from three distinct packages: Basic, Optimum, and Premium.

The architectural design of Akacjowa Wita stands out with its minimalist aesthetic and elegant finish. The buildings feature light-coloured facades, large windows, and contrasting dark accessories, creating a modern yet comfortable living space. Every flat will also come with a spacious balcony or garden, providing residents with a private outdoor area for relaxation.

Beyond the well-designed living spaces, Akacjowa Wita will offer several amenities for a convenient and comfortable lifestyle. The ground floors of the buildings will house service outlets, enhancing daily conveniences. A playground will be installed to ensure a safe and fun environment for children, while eco-conscious residents will appreciate the numerous bicycle racks and dedicated bike storage rooms.

The location of Akacjowa Wita also offers easy access to schools, kindergartens, and numerous cultural and entertainment facilities. Nearby shopping centres, a cinema, sports facilities, and green spaces, such as the Polish Aviators’ Park, make this development ideal for both active lifestyle enthusiasts and families. The Tauron Arena, a popular venue for concerts and sports events, and the Cogiteon Science Centre are also located nearby, further enhancing the area’s appeal. Additionally, the Water Park, a popular destination for family recreation and leisure activities, is just a short distance away.

To help buyers secure their homes in this sought-after location, ATAL is offering its proprietary programme, “Decision by Instalments 2.0”. This initiative allows prospective buyers to reserve a flat with a price guarantee until the end of March 2025, offering protection against potential price increases. It also allows customers to withdraw from the contract without penalties if they are unable to secure financing.

With Akacjowa Wita, ATAL is once again bringing its expertise in high-quality residential developments to Kraków, offering modern, well-located, and eco-friendly living spaces for a wide range of buyers.

Panattoni finalizes sale of logistics park in western Poland to Arete Investment Group

Panattoni has completed the sale of a logistics park in western Poland to Arete Investment Group, a pan-European asset management firm. The deal was finalized in just two months, underscoring the strong demand and investor confidence in prime logistics assets.

Michał Stanisławski, Head of Asset Dispositions at Panattoni, commented on the swift conclusion of the transaction, stating, “The transaction, finalized within two months from its start, serves as the best proof of our assets’ attractiveness and of the investors’ awareness of entering into the next phase of the cycle. Investor appetite for top-quality assets is growing rapidly in response to decreasing finance costs.”

Strategically located in western Poland, the logistics park offers access to millions of consumers both domestically and in Western European markets. The facility is fully commercialized, with one of the leading logistics operators using it as their primary distribution center. This high demand highlights the park’s prime location and operational efficiency.

The facility is designed to combine functionality with sustainability, boasting a BREEAM certification with an “Excellent” rating for its high energy efficiency and low carbon dioxide emissions. The park incorporates advanced energy management systems, LED lighting, and water-saving technologies, meeting the growing demand from tenants for modern, eco-friendly logistics spaces.

“This disposal marks another success for the company in the Polish industrial real estate market, confirming increasing investor interest in properties that offer not only prime locations and excellent operational characteristics for tenants but also modern and eco-friendly solutions supporting growth strategies,” added Stanisławski. “Panattoni consistently delivers such assets.”

This sale is part of Panattoni’s continued strategy to provide high-quality, sustainable real estate solutions in key European markets, with a strong focus on properties that align with both tenant needs and investor priorities. As the industrial logistics sector continues to grow, Panattoni remains at the forefront of this dynamic market, meeting the evolving demands of both stakeholders and the environment.

S IMMO AG announces successful sale of two office properties in Vienna

S IMMO AG, a leading real estate company, has confirmed the successful sale of two office properties in Vienna, further advancing its prudent investment strategy and ongoing portfolio optimization. The properties, located in key areas of Vienna, were sold to an Austrian investor, marking another step in the company’s effort to streamline its holdings and focus on more strategically advantageous assets.

Both office buildings are situated in close proximity to the Vienna West railway station (Westbahnhof), a major transportation hub in the city, making them prime real estate locations. The first property, located on Mariahilfer Straße, boasts a gross leasable area of approximately 4,300 square meters. This location, known for its bustling retail and commercial activity, offers excellent access to public transportation and is a desirable area for businesses seeking high footfall.

The second property is situated on Gasgasse, in Vienna’s 15th district, and covers a total gross leasable area of around 7,500 square meters. Like the Mariahilfer Straße property, it is near Westbahnhof, further enhancing its accessibility and appeal. Both buildings are nearly fully leased, a testament to their ongoing attractiveness and the strong demand for office spaces in these prime areas.

Tomáš Salajka, a member of S IMMO’s Management Board, expressed satisfaction with the sales, stating: “These sales are in line with our ongoing portfolio optimization strategy. By divesting smaller and medium-sized office properties with limited development potential, we are creating the foundation for future growth and profitability. The proceeds from these transactions will support our strategic objectives and help us focus on higher-growth opportunities.”

The decision to streamline the portfolio reflects S IMMO’s shift towards focusing on higher-value assets with greater long-term development potential. The company aims to optimize its real estate portfolio to better align with its financial goals and the evolving market conditions. This strategic adjustment is part of S IMMO’s broader effort to enhance shareholder value and secure a strong market position in the future.

The successful sales of these office properties come at a time when demand for high-quality office space in Vienna remains robust, driven by the city’s strategic location in Central Europe and its reputation as a major business and financial hub. By focusing on properties with greater growth potential, S IMMO aims to strengthen its presence in key markets and maximize returns for its investors.

As S IMMO continues to adapt to shifting market trends, the company remains committed to delivering sustainable growth through strategic portfolio management and targeted investments in high-potential properties across Europe. The recent sales in Vienna are a key milestone in this journey and a positive indicator of the company’s ongoing success in the real estate market.

NEPI Rockcastle acquires Magnolia Park Shopping Centre for EUR 373 million in Poland

NEPI Rockcastle has completed the acquisition of the Magnolia Park shopping centre in Wroclaw, Poland, from Union Investment in an off-market deal valued at EUR 373 million. The transaction, one of the largest single-asset shopping centre deals in Central and Eastern Europe in recent years, marks a significant addition to NEPI Rockcastle’s portfolio.

The 100,000-square-meter retail complex, located in Poland’s third-largest city, was originally acquired by Union Investment in 2017 through its open-ended real estate fund UniImmo: Europa. The sale represents a major strategic move for NEPI Rockcastle, reinforcing its position as a leading retail real estate owner in the region.

“Magnolia Park is one of the top retail assets in Poland,” said Rüdiger Dany, CEO of NEPI Rockcastle. “The acquisition will significantly strengthen our portfolio and help consolidate our standing as a premier retail real estate player in Central and Eastern Europe. With a strong track record of adding value to our acquisitions, we believe this property has significant potential for growth in the coming years.”

Union Investment’s Roman Müller, Head of Investment Management Retail, added, “This off-market transaction highlights the strength of our network and demonstrates that even in challenging market conditions, the right product can meet the expectations of both buyers and sellers.”

Magnolia Park, one of Poland’s top 10 shopping malls, enjoys a prime location in Wroclaw, a key economic hub with excellent visibility and access via car and public transport. The mall is 99% leased, hosting 240 stores, including major tenants such as Carrefour, Primark, Castorama, Decathlon, Media Markt, Zara, H&M, and TK Maxx. The property boasts a BREEAM Excellent sustainability certification, highlighting its commitment to environmental responsibility.

Anca Nacu, Investment Director at NEPI Rockcastle, noted, “This transaction is in line with our strategy to concentrate our portfolio in investment-grade rated countries, focusing on core, dominant properties. Magnolia Park is a modern, sustainable asset positioned for future growth.”

Union Investment’s Henri Eisenkopf, Director Transactions Shopping Places, explained that the sale aligns with the company’s broader strategic plan to reduce exposure in Poland, despite Magnolia Park’s strong performance.

The acquisition was supported by a team of advisors, with Linklaters acting as legal advisor for NEPI Rockcastle, PwC providing tax and financial advice, and PM Services offering technical expertise. Union Investment was advised commercially by JLL, legally by CMS, and on tax matters by Thedy & Partners.

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