First BREEAM-certified logistics hall completed in Slovenia by HSF System

First BREEAM-Certified Logistics Hall Completed in Slovenia by HSF System

HSF System Group, part of the PURPOSIA Group investment holding, has completed construction of a logistics hall in the LOGspot Logatec logistics park in Slovenia. The development, carried out for investor Atrios, represents the first logistics facility in the country to receive BREEAM Very Good environmental certification.

The €20 million project includes a total area of 54,199 square metres, featuring 26,525 square metres of warehouse space, 14,485 square metres of paved infrastructure, and 13,189 square metres of green areas. The development also incorporates related infrastructure and technology upgrades.

The site is located in a karst and seismically active zone, which required extensive geological surveys and specialised earthworks prior to construction. Despite these challenges, the project was completed ahead of schedule.

The facility includes features such as electric vehicle charging stations, air-to-air heat pumps, and plans for rooftop photovoltaic panels with battery storage. The building was designed in accordance with modern sustainability and ESG standards.

This is the first project under the LOGspot logistics network brand, developed by Atrios, marking a step forward in the company’s regional logistics operations. The completed facility has already been handed over to its tenants.

LOGspot Logatec is located 25 kilometres from Ljubljana and 75 kilometres from the Port of Koper, with direct access to the A1 motorway, offering a strategic position for logistics and distribution operations.

Scallier expands property management structure in Poland

Poznań-based real estate company Scallier has strengthened its organizational structure in Poland with the appointment of Rafał Langer as Head of Property Management, effective since mid-April 2025. The move is part of the company’s broader effort to support its ongoing operations in the country.

Rafał Langer brings more than two decades of experience in managing commercial real estate across multiple sectors, including office, logistics, retail, services, and residential. His professional background includes work with international corporations, investment funds, government institutions, developers, and private clients. He is a graduate of the SGH Warsaw School of Economics, specializing in property management.

In his role at Scallier, Langer is responsible for overseeing project development and process optimization within the property management department. He will also lead coordination efforts within the management team, strengthen investor relations, and support the strategic growth of Scallier’s property management services in Poland.

According to Bartosz Nowak, Managing Partner at Scallier, Poland’s retail real estate market has experienced steady growth in recent years. In 2024, Poland ranked second in Europe for newly delivered retail space, behind only France. He noted that more than 500,000 sqm of new retail space is expected to be added in 2025, with retail parks and smaller local centres continuing to dominate new developments. The total area of such facilities has doubled since 2020.

Nowak emphasized the operational challenges associated with managing geographically dispersed assets and rising maintenance costs, which impact overall asset performance. He pointed to Scallier’s experience in developing a proprietary retail property management model over the past 14 years as a key factor in maintaining service quality and cost efficiency.

Langer added that the current expansion of the department will enable Scallier to deliver integrated property management services at scale. Discussions with potential clients concerning the management of additional assets—particularly dispersed portfolios—alongside active leasing efforts, are expected to support the company’s further market growth.

Founded in 2011, Scallier operates in both Poland and Romania, with a focus on retail real estate. In Poland, the company manages 51 properties, totalling approximately 75,000 sqm. Its activities include property management, project leasing, and the development, expansion, and modernization of retail parks, regional shopping centres, and convenience retail facilities.

Arkadia shopping centre in Slovenia sold to SES Spar European Shopping Centers

Generali Adriatic Value Fund, managed by Generali Investments Slovenia and advised by Peakside Capital, has signed an agreement for the sale of the Arkadia shopping centre in Domžale, Slovenia. The buyer is SES Spar European Shopping Centers. The transaction, signed on 11 June 2025, is subject to approval by the Slovenian Competition Protection Agency. Financial details were not disclosed.

Arkadia, located northeast of Ljubljana, comprises 19 retail units with over 11,000 square metres of leasable space and 350 parking spaces. The centre is fully leased and includes a mix of international and local tenants. Its location near the Ljubljana–Maribor motorway offers strong connectivity for both customers and retailers.

Peakside Capital and Generali Investments Slovenia acquired the property in 2018 through the Generali Adriatic Value Fund, Slovenia’s first regulated alternative real estate investment fund. The fund focuses on generating income and long-term value from investments across the commercial real estate sectors in Southeast Europe.

Christopher Smith, Head of Portfolio Management CEE at Peakside Capital Advisors, stated that the transaction reflects the outcome of a strategy focused on active asset management. He added that the firm continues to seek investment opportunities in the region.

Russia’s exports grew sharply in 2024 despite western sanctions

Russia recorded nearly a 20% increase in exports in 2024, according to a study published by the German weekly Der Spiegel, based on research by the Cologne Institute for Economic Research (IW). The analysis indicates that Russia generated approximately USD 330 billion in export revenues last year, despite multiple Western sanctions imposed in response to its war in Ukraine.

The report highlights a major shift in Russian trade strategy, with a growing focus on countries in the Global South. Nations such as India and China have become key markets for Russian oil and gas, contributing substantial revenue to the Russian state budget.

Trade with Western countries, including Germany, Italy, and the United States, has declined sharply—by as much as 92%—following the sanctions. However, the study notes that Russia has increased exports to other countries, including Hungary (an EU member), Brazil, Turkey, and Israel. Russian authorities have publicly stated that the country has adapted to the sanctions regime by cultivating new trading partners.

While the Kremlin has acknowledged the economic strain resulting from sanctions, it has also ramped up its focus on supporting the war economy. President Vladimir Putin has repeatedly emphasized Russia’s commitment to maintaining its military export obligations despite the ongoing conflict in Ukraine.

To counter Russia’s export gains and reduce its wartime revenues, the IW recommends stricter measures. One suggestion is to lower the EU’s current price cap on Russian oil, which is set at USD 60 per barrel. EU member states are currently debating a reduction to USD 45 per barrel, while Ukrainian President Volodymyr Zelensky has called for a cap of just USD 30.

The IW also advises more aggressive action against the so-called Russian “shadow fleet”—tankers that operate without proper insurance or documentation and are used to transport Russian oil to countries like India, effectively bypassing sanctions.

Source: Der Spiegel, IW & CTK

Czech Republic organizes repatriation flight for citizens in Israel

The Czech Republic is dispatching a repatriation flight today to assist its citizens currently in Israel. The flight will accommodate those who have registered with the Czech embassy in Tel Aviv. The Ministry of Foreign Affairs has not disclosed additional details due to security concerns.

In parallel, several Czech nationals are expected to return via a Slovak-organized repatriation flight from Amman, Jordan, to Bratislava. The operations come amid escalating conflict between Israel and Iran, which has resulted in the closure of Israeli airspace and the suspension of commercial flights between Israel and Prague since Friday.

The Czech Foreign Ministry has issued a warning against travel to Israel and advised against visiting Lebanon and Jordan. It has also urged all Czech citizens to leave Iran.

As of the weekend, the Drozd travel registration system listed 144 Czech nationals in Israel, 50 in Jordan, 55 in Lebanon, and two in Iran. The Ministry also noted that several hundred Czech citizens reside in Israel long-term.

The conflict began late Friday night with Israeli airstrikes targeting Iranian military and nuclear facilities. Israel has stated the strikes were intended to halt Iran’s alleged nuclear weapons program, a claim Iran denies. Since then, Iran has launched multiple rocket and drone attacks on Israeli territory. Both countries have reported casualties, including among civilians.

Source: CTK

Residential property prices in Slovakia rise over 12% year-on-year in Q1 2025

Residential property prices in Slovakia increased by more than 12% year-on-year in the first quarter of 2025, according to revised data published by the Statistical Office of the Slovak Republic on 16 June 2025. The revision, based on official data from the Real Estate Cadastre, replaced earlier estimates derived from advertised prices on internet portals.

On a quarterly basis, residential property prices rose by 2.1% in Q1 2025. This growth was slightly lower than the preliminary figure published in late May and marked a slower pace than in the final quarter of 2024. The increase was driven primarily by new dwellings, which rose 2.8%, while prices of existing dwellings grew at a slower rate of 2.0%.

The updated data also revealed notable regional differences. Quarter-on-quarter price growth was recorded in seven of Slovakia’s eight regions, with only Košice Region showing no increase. The most significant growth was seen in Trnava Region, where prices rose by 4.9%. In most regions, existing dwellings experienced faster price increases than new ones. However, the reverse was observed in Bratislava and Banská Bystrica Regions. Despite the upward trend, no region recorded quarterly price growth above 6% for either type of dwelling.

Year-on-year, residential property prices increased by 12.2% across Slovakia, representing the most significant annual growth since the third quarter of 2022. Prices of existing dwellings saw a sharper rise of 12.4%, while new dwellings increased by 11.2%.

All eight Slovak regions experienced year-on-year price growth. The smallest increase was in Trnava Region (7.3%), while Nitriansky Region recorded the highest at 18.5%. Double-digit growth was also seen in Prešov, Bratislava, and Žilina Regions. In several regions, existing dwellings outpaced new dwellings in terms of price growth, with Bratislava, Žilina, and Nitra Regions all reporting increases above 15% for existing housing. Price increases for new dwellings exceeded 15% only in Bratislava and Trenčín Regions.

In a long-term context, average residential property prices in the first quarter of 2025 were more than double their levels from 2010. Over the 14-year period, prices for new dwellings rose by over 70%, while prices for existing dwellings climbed by 115%.

Producer prices in May 2025: Industrial decline continues, services and construction rise

Producer price data for May 2025 shows a mixed landscape across sectors in the Czech economy. Industrial producer prices continued their downward trend, falling for the fourth consecutive month, while prices in agriculture, construction, and services maintained year-on-year growth.

According to the Czech Statistical Office (CZSO), industrial producer prices dropped by 0.6% month-on-month and were 0.8% lower than in May 2024. “The decline in industrial prices continues, driven by reductions in key sectors such as energy and chemicals,” said Vladimír Klimeš, head of the Industrial and International Trade Prices Statistics Unit at CZSO.

Agricultural Producer Prices
Agricultural prices decreased by 1.5% compared to April. This decline was influenced by lower prices for cereals (-0.9%) and eggs (-6.1%), though increases were recorded for pigs for slaughter (+5.6%), potatoes (+3.5%), and cattle for slaughter (+1.5%). On a year-on-year basis, agricultural producer prices remained significantly higher—up 15.7%. Crop production rose by 16.1%, with notable increases in fruit (+36.3%) and oilseeds (+24.6%). Animal production rose 15.9%, driven by strong gains in prices for eggs (+43.6%), milk (+19.5%), and cattle (+27.1%), despite a 9.0% decline in pig prices.

Industrial Producer Prices
Industrial prices fell 0.6% month-on-month, led by declines in ‘electricity, gas, steam and air conditioning’ (-2.7%) and ‘chemicals and chemical products’ (-1.3%). Price increases were seen in ‘basic metals’ (+1.4%) and ‘food products’ (+0.4%), especially ‘preserved meat’ (+1.4%) and ‘animal feeds’ (+0.9%). Year-on-year, industrial prices declined by 0.8%, with continued drops in energy-related categories including ‘electricity, gas, steam and air conditioning’ (-3.5%), ‘chemicals’ (-6.2%), and ‘coal and lignite’ (-10.2%). Food products rose 3.2%, with a strong gain in dairy products (+12.3%).

Among main industrial groupings, energy prices declined 5.9% y-o-y, while prices for consumer goods and capital goods rose by just over 2%. Excluding energy, industrial producer prices were up 1.4% compared to 0.6% in April.

Construction Prices
Estimated construction work prices increased by 0.4% month-on-month and were up 3.9% year-on-year. Prices for construction materials and products rose by 0.1% m-o-m and 1.0% y-o-y.

Service Sector Prices
Service producer prices in the business sector rose by 0.2% from April, and were 4.4% higher than a year ago. The most significant monthly increases were in entertainment-related services such as ‘motion picture, video and music publishing’ (+7.7%) and ‘broadcasting services’ (+4.0%). Prices also rose for advertising (+1.8%) and engineering services (+1.1%). Declines were noted in ‘employment services’ (-1.3%) and ‘information services’ (-1.8%). Excluding advertising, service prices were flat m-o-m and up 3.4% y-o-y.

EU Comparison – April 2025
According to Eurostat’s preliminary data, industrial producer prices in the EU27 declined by 2.1% m-o-m in April. Notable decreases were recorded in Bulgaria (-4.9%), France (-4.3%), and Ireland (-4.0%). Prices also fell in Czechia (-0.8%), Germany (-0.7%), and Poland (-0.6%). On a year-on-year basis, EU-wide industrial prices rose by 0.6%, with the highest increases seen in Bulgaria (+17.0%), Ireland (+5.4%), and Greece (+5.3%). Czechia posted a y-o-y decline of 1.3%.

The data highlights continued deflationary pressures in industrial production across Europe, while domestic sectors such as construction and services remain more resilient.

Trammell Crow company begins construction of industrial development in Kerpen, Germany

Trammell Crow Company (TCC) has started construction on a new speculative industrial development in Kerpen, located in Germany’s Rhine-Ruhr region. The project is being developed in partnership with Cain International and is scheduled for completion in the first quarter of 2026.

The site, situated on Hüttenstraße approximately 23 kilometres west of Cologne, will feature two logistics buildings with a total area of 28,117 square metres. This includes 23,258 square metres of warehouse and production space, 3,129 square metres of mezzanine, and 1,730 square metres of office space. The facilities are being built on a 46,202 square metre brownfield plot and are being designed to meet modern operational and environmental standards, with both buildings aiming to achieve BREEAM Excellent certification.

The location offers direct access to the A4 motorway and is also near the A1 and A3, providing strong transport connectivity across Germany and to international destinations. The development is within reach of major transport hubs, including Cologne Bonn Airport, the Port of Cologne-Niehl, and the European seaports of Rotterdam and Antwerp. It also benefits from accessibility to cargo airports in Liège and Frankfurt.

The project is part of the Hüttenstraße industrial zone, an established business area that includes both multinational companies and smaller enterprises. Public transport connections are available nearby, with a bus stop adjacent to the site and a train station 2.3 kilometres away.

Construction began in March 2025, and early access to the premises can be arranged by agreement. CBRE is serving as the lead leasing agent.

Sanitary installation design sector faces crisis as low margins drive out skilled engineers

The sanitary installation design sector in Poland is undergoing a severe crisis, with industry insiders warning of systemic challenges far beyond the usual issues of delayed payments. Design offices are being forced to accept projects that fail to cover their operating costs, leading to business closures and an alarming exodus of qualified engineers from the profession.

“Offices take on work that’s financially unsustainable just to stay in business—or they shut down. Engineers, meanwhile, are leaving the field altogether,” says Przemysław Tkaczuk, a sanitary installation engineer and co-owner of PM Projekt.

The root cause is consistently low profit margins, which have destabilized the sector and discouraged new talent from entering the profession. Young graduates see little incentive to pursue careers in a field where financial rewards are minimal. “Many engineers earn less than supermarket cashiers,” Tkaczuk notes. “It’s hard to justify staying in a profession, no matter how interesting, if it doesn’t provide basic financial security.”

This outflow of professionals is creating significant skills gaps. A shortage of qualified HVAC and sanitary designers is already leading to errors in planning, project delays, and even poor selection of key technologies such as heat pumps—issues that ripple through the wider construction sector.

“The consequences extend well beyond our industry,” warns Marcin Kosieniak, an MEP specialist, forensic expert in sanitary design errors, and co-owner of PM Projekt. “Design is an early, critical link in the construction chain. Mistakes or delays at this stage cascade into major problems during execution.”

Both Tkaczuk and Kosieniak stress that the situation requires immediate intervention. One potential remedy, they suggest, would be to implement minimum fee standards for design services—similar to regulated professions such as architects or property valuers. This could help prevent destructive price competition and ensure that basic project quality and viability are maintained.

They also call for systemic investment in education and professional development. “We need to support future engineers,” Kosieniak explains. “That means offering scholarships and grants for students in sanitary engineering, building mentoring networks with experienced professionals, and promoting awareness of the value and impact of this career path.”

As Kosieniak puts it, “Once students are introduced to the field, they often find the work deeply engaging—but too many never get the chance. If we don’t act now, the situation could become irreversible. This is a shared responsibility across designers, investors, authorities, and educational institutions.”

Brno Jedna: Revitalizing Brno’s industrial past into a functional urban future

In a recent Q&A with Petr Pospíšil, Director of the Brno Branch at PSN, he discussed the upcoming transformation of Brno’s eastern district through the Brno Jedna project. The residential development, situated along Plynárenská Street, is set to revitalise a former industrial site by introducing a modern urban neighborhood that thoughtfully incorporates the area’s historical identity.

The first stage of the project consists of two residential buildings—Neon and Xenon—designed by architecture studio A8000. These buildings will offer a total of 188 apartments, including a variety of layouts: 109 one-room units, 66 two-room units, 11 three-room units, and two larger four-room apartments on the upper floors. Many apartments come with balconies or private gardens to enhance liveability for a range of residents, including young professionals, small families, and retirees.

According to Petr Pospíšil, Director of the Brno Branch at PSN, the developer behind the project, the construction of Neon and Xenon is scheduled for completion in the fourth quarter of 2027. “Once these are completed, the next phases will follow, adding more residential buildings and public spaces. We’re steadily converting this former industrial area into a vibrant and integrated urban neighborhood,” he said.

The market has responded positively since the project launch, Pospíšil confirmed, although specific sales figures have not yet been released. “Interest is high, particularly among young families and professionals working in Brno. We’re also seeing interest from long-term investors. The stabilising property market is encouraging more buyers who are purchasing for personal use rather than investment alone,” he noted.

Brno Jedna’s architecture is designed to reflect the industrial history of the site, incorporating raw materials, exposed metalwork, and large-scale windows. The buildings aim to balance aesthetic reference with practical living, featuring compact, functional layouts and shared amenities such as rooftop terraces, an inner courtyard, an outdoor workout area, and spaces for urban gardening.

Additional facilities include a gym, laundry room, bike storage, and an on-site café. Security elements such as street lighting and surveillance systems are integrated to ensure a safe environment for all residents. Underground parking and private storage spaces are also part of the offering.

Sustainability plays a central role in the project. “We’re incorporating solar panels, rainwater retention systems, and electric vehicle charging stations. Residents will also have access to shared bicycles and extensive bike storage,” said Pospíšil. The development promotes compact living with minimal environmental impact, aligning with broader efforts to reduce urban sprawl and dependence on cars.

Proximity to the city center—just five minutes away—offers strong connectivity. Future city plans to develop a riverside promenade along the nearby Svitava River and expand cycling infrastructure are expected to further improve the district’s accessibility and appeal.

In terms of investment potential, Pospíšil sees Brno Jedna as competitive both within the city and when compared to similar mid-sized European markets. “The location, thoughtful design, and preserved industrial character distinguish it from more standard developments. It offers lasting value for both residents and investors.”

The development also fits neatly into Brno’s long-term urban planning strategy, which encourages the creation of dense, multi-functional city districts. “Brno Jedna respects the industrial past of the location while introducing high-quality public spaces that support a more active city life. It will also connect with the revitalised riverside area, helping link this part of the city with other regenerated zones such as Radlas and Špitálka,” Pospíšil added.
Regarding pricing, the project is positioned in line with its central location and quality of design. However, a diverse mix of apartment sizes is intended to keep the development accessible. “We are cooperating with financial institutions to support first-time buyers and make ownership more attainable for younger and local residents,” Pospíšil explained.

With construction of its initial phase underway and broader plans already in motion, Brno Jedna represents one of the city’s most ambitious residential regeneration efforts—aiming to create a new urban district that connects Brno’s past with its evolving future.

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