UBM Development Czechia receives permit for Rezidence Na Plzeňce in Prague 5 – Smíchov

UBM Development Czechia has obtained a building permit for Rezidence Na Plzeňce, a new residential project located in the attractive Prague 5 – Smíchov district. The development will be constructed on a plot of over 3,800 m² and is set to include 160 apartments and four commercial units, built with a focus on high energy efficiency.

The eight-story apartment building will feature a variety of energy-saving technologies including geothermal boreholes, heat pumps, photovoltaic panels, and charging stations for electric vehicles. Future residents can expect private front gardens with terraces, as well as access to a quiet, green courtyard. Construction is scheduled to begin in the first half of 2025, with completion anticipated in 2027.

Josef Wiedermann, Managing Director of UBM Development Czechia, stated that the project reflects a growing demand for quality, sustainable housing in Prague. He noted that the Rezidence Na Plzeňce development combines modern architectural design with respect for the historical context of the Smíchov conservation area. The project is strategically located near key transport links, including the Prague-Smíchov railway station, the metro, and the nearby Vltava River and Smíchov embankment.

The development will offer a range of apartment layouts from 1+kk to 4+kk, with sizes varying between 28 m² and 112 m². Most units will feature balconies, with ground-floor apartments including front gardens with terraces and top-floor apartments offering expansive views of the Prague skyline. The building will also include a two-story underground garage providing parking for both conventional and electric vehicles.

Designed by architects Tomáš Krejčí and David Lukas of UBM Development Czechia in collaboration with Srđan Marković from sm.A.A. studio, the project aims to integrate modern design with the character of the surrounding historic block. The building will be divided into four sections, with a shared garage located on two underground floors and an enclosed courtyard featuring front gardens for ground-floor residents.

Rezidence Na Plzeňce is located in an area that blends historical significance with modern urban life. The neighborhood offers a full range of amenities including shops, schools, medical facilities, restaurants, and recreational spaces. Excellent transport connections are available, with the Plzeňka tram stop nearby, the Na Knížecí bus station within a five-minute walk, and the Smíchov transport terminal currently under reconstruction to become the largest transport hub in Prague.

UBM Development Czechia’s Rezidence Na Plzeňce is expected to contribute to the ongoing transformation of Prague’s Smíchov district, providing both residents and investors with a high-quality, sustainable housing option in one of the city’s most sought-after locations.

New city park in Wilanów to align with residents’ expectations

A new city park will be developed in Warsaw as part of the Wilanów Park project, with plans to create a green space designed to meet the needs of local residents. The project, managed by Nhood Services Poland on behalf of real estate company Ceetrus, will offer a variety of landscapes and designated zones for different activities. The park is expected to open in 2028 and will provide a much-needed natural space for the community.

The two-hectare park is being designed in partnership with the local community and the Wilanów District Office. The concept was developed by RS Landscape Architecture, the winning firm in an open architectural competition organized by the Warsaw Branch of SARP. The park’s layout is intended to reflect the natural landscape of the area, incorporating varied terrain, water reservoirs, and diverse vegetation.

“The aim is to create a space that appeals to people of all ages, whether they are looking for active recreation or a quiet place to relax,” said Agnieszka Gasparska, a landscape architect from RS Landscape Architecture. “Our design draws inspiration from the natural features of the valley, integrating water elements and multi-species greenery.”

The park will occupy over 20,000 square meters, approximately one-third of the total Wilanów Park development area. The investment, including the park, has already received environmental approval.

The park will be divided into zones that accommodate various activities, including sports, relaxation, and community events. It will feature playgrounds, picnic areas, and pet-friendly spaces. A designated area will host outdoor events, and a café with a rest area for cyclists will be included. The park will also be designed with accessibility in mind, featuring wheelchair-friendly paths and spaces suited for visitors with different mobility needs.

The landscape will include water reservoirs that serve both aesthetic and functional purposes, supporting sustainable water management by collecting rainwater from roofs and paved surfaces. The park’s biodiversity will be enhanced with plant species that attract birds and small wildlife, as well as flower meadows maintained to support pollinating insects. Insect boxes will be installed throughout the area.

The city park will be developed alongside the Wilanów Park project, which is being built in the southern part of Warsaw, near Miasteczko Wilanów. The development is located within the area of Uprawna, Przyczółkowa, Karuzela, and Aleja Rzeczypospolitej streets.

Nhood Services Poland is overseeing the project’s planning and execution. The development has received the BREEAM Communities Interim certificate, a sustainability standard for projects at the design stage. Further environmental certifications, including the BREEAM New Construction Interim and Final certificates, will be pursued before and after construction.

The new park aims to enhance the quality of life in Wilanów by offering a well-designed green space that balances recreational functions with ecological sustainability.

IWG Study: Hybrid businesses show stronger optimism for 2025 growth

A new study by the International Workplace Group (IWG) has revealed that businesses operating with hybrid work models are significantly more optimistic about their prospects for 2025 compared to those requiring full-time office attendance. The research, which surveyed more than 1,000 CEOs and senior business leaders, found that 75% of companies offering flexible work arrangements have a positive outlook for the year ahead, compared to 58% of businesses that do not offer hybrid options.

The findings indicate that flexible work arrangements contribute to reduced overhead costs, improved employee productivity, and a stronger ability to attract talent. More than three-quarters (79%) of hybrid businesses reported cost savings by reducing office space and utilizing short-term workspace solutions. Additionally, 75% of these businesses see hybrid work as a way to manage economic pressures such as rising taxes and market fluctuations.

The study also highlights that businesses prioritizing workplace flexibility are more confident about broader economic conditions. While 63% of hybrid businesses reported feeling more positive about the economy than they did a year ago, only 44% of non-hybrid businesses shared the same sentiment.

Impact on Productivity and Workforce Growth

Workforce productivity and employee retention emerged as key drivers behind the optimism among hybrid businesses. According to the survey, 72% of flexible businesses reported increased productivity, and 71% said their policies have strengthened their ability to attract and retain top talent. These findings align with research by Stanford professor Nicholas Bloom, which showed that hybrid work improves job satisfaction and reduces employee turnover by 33%, without negatively impacting productivity.

The study also found that companies with hybrid work policies are more confident in their ability to expand. Among these businesses, 67% expect growth in 2025, compared to 51% of non-hybrid businesses. Similarly, 48% of hybrid businesses anticipate increasing their workforce, compared to 38% of those requiring full-time office attendance.

Industry Perspectives

Mark Dixon, CEO of IWG, noted that businesses embracing hybrid work models are positioning themselves for long-term success. “In these challenging times, business leaders are thinking about the best way forward. Companies that prioritize talent retention and operational efficiency are the ones showing the most confidence. By adopting hybrid working, businesses are not only reducing costs but also fostering a more productive and satisfied workforce,” Dixon said.

As economic uncertainty continues, the research suggests that businesses with flexible work arrangements may have an advantage in navigating future challenges while maintaining a competitive edge.

Photo: Mark Dixon Founder and CEO IWG Copyright Ian McIlgorm

NEPI Rockcastle reports record €556 million net operating income in 2024

NEPI Rockcastle, Europe’s third-largest listed retail real estate company, achieved a record-high net operating income (NOI) of €556 million in 2024, marking a 13.2% increase from the previous year. The company’s strong financial performance was driven by higher retailer sales and resilient consumer spending in Central and Eastern Europe (CEE).

Distributable earnings per share (DEPS) for the second half of 2024 stood at 30.05 euro cents, bringing the full-year DEPS to 60.17 euro cents—5.6% higher than in 2023. The Board has declared a dividend of 27.05 euro cents per share for the second half of the year, maintaining a 90% dividend payout ratio.

Growth Through Acquisitions and Investments

NEPI Rockcastle expanded its portfolio significantly in 2024, acquiring two major retail properties in Poland—Magnolia Park in Wrocław and Silesia City Center in Katowice. These acquisitions, totaling €760 million, accounted for 40% of all retail real estate investment transactions in the CEE region last year. Portfolio value at year-end reached €7.9 billion, compared to €6.8 billion in 2023, solidifying the company’s position as a leading retail landlord in Europe.

To finance these acquisitions, the company raised €800 million in capital markets, including a €500 million green bond issue and a €300 million equity raise, the latter being its first since 2017. NEPI Rockcastle ended the year with a loan-to-value (LTV) ratio of 32.1%, below its 35% target, and a liquidity position of €1.1 billion, ensuring financial stability for future expansion.

Operational Performance and Market Trends

CEO Rüdiger Dany attributed the NOI growth to rising tenant sales, which allowed for increased base rents and a 15% rise in turnover rent. The occupancy cost ratio (OCR) remained stable, reflecting the company’s effective collaboration with retailers. Vacancy rates across the portfolio were reduced to 1.7%, a notable achievement in the sector.

Gross rental income grew by 10.9% year-on-year to €566 million, supported by rental indexation, higher occupancy, and increased turnover rent. Like-for-like tenant turnover rose by 8.5% (excluding hypermarkets), demonstrating strong consumer demand despite economic challenges. The average basket size increased by 8%, consistent with prior-year trends.

Sustainability and Green Energy Initiatives

NEPI Rockcastle advanced its sustainability commitments in 2024, focusing on emission reductions, renewable energy adoption, and waste management. The company completed the first phase of its renewable energy program, installing photovoltaic panels across 28 properties in Romania and Lithuania, with a total capacity of 38 MW. A second phase, set to add 15 MW across 23 properties outside Romania, is underway.

In the fourth quarter, the company acquired two project companies with land rights and permits for 159 MW of photovoltaic capacity, representing an estimated investment of €110 million. These projects are expected to enhance green energy production and contribute to long-term revenue growth.

Outlook for 2025

NEPI Rockcastle remains optimistic about the economic prospects of its CEE markets while acknowledging macroeconomic uncertainties. The company plans to continue expanding its portfolio through strategic acquisitions and development projects, with a pipeline totaling 187,900 square meters of gross leasable area (GLA) and a projected investment of nearly €788 million.

Looking ahead, NEPI Rockcastle aims to maintain financial discipline, strengthen its retail property portfolio, and further integrate sustainable practices. “Our record performance in 2024 has laid a strong foundation for future growth,” said Dany. “We will continue seeking opportunities that align with our strategic vision and deliver optimal returns for investors.”

Noli Studios expands to Gdańsk following success in Warsaw

Noli Studios, a Nordic residential concept developed by Nrep, is expanding its presence in Poland with two new locations in Gdańsk. Following the success of its seven sites in Helsinki and the Noli Mokotów project in Warsaw, the company is introducing Noli Gdańsk Wrzeszcz and Noli Gdańsk Riverside as part of its European growth strategy.

Noli Studios combines residential comfort with hotel-style services, offering flexible accommodation designed for young professionals, business travelers, and digital nomads. The concept emphasizes shared living spaces to foster a sense of community, a response to increasing urban isolation, particularly among remote workers and expatriates.

Noli Gdańsk Wrzeszcz, set to open in March 2025, is located in a central urban area near the Metropolia Gallery and Gdańsk Wrzeszcz railway station. The five-story building includes 190 fully furnished private studios, alongside 450 square meters of shared spaces such as a gym, sauna, communal kitchens, film and game rooms, and coworking areas.

The Wrzeszcz district is known for its blend of historic charm and contemporary culture, making it a desirable location for professionals seeking a well-connected and vibrant neighborhood.

Noli Gdańsk Riverside, expected to open in late spring 2025, is situated on Siennicka Street in Śródmieście, near the revitalized Gdańsk Shipyard. The site offers 233 fully equipped studios with access to shared facilities, including a gym, sauna, communal kitchens, coworking spaces, and entertainment areas. The location is a short distance from the Old Town and cultural venues such as Club B90 and 100cznia, a hub for dining and nightlife.

Noli Studios incorporates sustainable solutions such as heat pumps, photovoltaic panels, and water and waste management systems to minimize environmental impact. Both Gdańsk locations aim to secure LEED certification, aligning with high sustainability standards in urban development.

The concept also promotes community engagement through networking events, cultural programs, and wellness activities. Noli Studios partners with local businesses, including cafés and restaurants, to connect residents with the broader urban environment.

Noli Studios offers a range of fully furnished apartments tailored to different lifestyles. In Noli Gdańsk Riverside, unit sizes range from 19 to 31 square meters, with rents starting at PLN 2,550 per month. At Noli Gdańsk Wrzeszcz, options vary from 14-square-meter Mini Studios, priced at PLN 2,750 per month, to 39-square-meter Large Studios, available from PLN 5,000 per month.

By combining private living spaces with communal areas, Noli Studios aims to provide an alternative to traditional housing and hotels, emphasizing flexibility, well-being, and social connection in urban living.

Study examines future office trends and workplace preferences

A new study by the MOMENI Group and Union Investment, conducted in collaboration with the Fraunhofer Institute for Industrial Engineering IAO, explores the factors shaping the future of office real estate. As companies navigate return-to-office trends, the study highlights key aspects that make office spaces attractive to both employers and employees.

The research surveyed senior decision-makers from various industries as well as office employees across Germany, identifying clear trends influencing investment and development decisions. One of the central findings is the growing emphasis on high-quality office properties in prime locations. According to the study, 85 percent of decision-makers plan to maintain their focus on central urban locations, underscoring the importance of well-connected, future-proof properties with added amenities.

Sustainability and architectural quality are becoming essential considerations, with a strong preference for buildings that offer an enhanced working environment. Andreas Gladisch, CEO of the MOMENI Group, noted that premium office spaces with service offerings and a well-integrated urban setting are increasingly viewed as key to long-term success.

Despite the rise of artificial intelligence in workplace operations, the study suggests that AI-driven efficiency improvements do not necessarily translate into reduced office space needs. Only three percent of decision-makers expect AI to significantly cut space requirements, reinforcing the idea that offices will continue to serve as critical hubs for communication and collaboration.

Location remains a decisive factor for employees. Nearly a quarter of respondents stated they would consider changing employers for a better office location, highlighting the role of urban quality in employee satisfaction. Accessibility by public transport, as well as proximity to retail and dining options, ranked among the most important considerations for office workers. Alejandro Obermeyer, Head of Investment Management DACH at Union Investment Real Estate GmbH, emphasized that office spaces offering convenience and lifestyle amenities hold a competitive advantage over remote work options.

Flexibility in office design is also gaining importance. The study indicates that demand for multi-space office layouts is increasing, with traditional leasing models still dominating the market. A notable finding is the appeal of outdoor workspaces—71 percent of employees surveyed expressed interest in having access to terraces, gardens, or other open-air areas within office properties.

The findings provide valuable insights for investors, developers, and corporate real estate planners. As workplace expectations evolve, the demand for well-located, high-quality office environments with flexible use options continues to shape the future of office real estate.

The Grounds appoints Andrew Wallis as Chief Financial Officer

fletcher@cijeurope.com
26 February 2025
Jobs

The Supervisory Board of The Grounds Real Estate Development AG has appointed Andrew Wallis as the company’s Chief Financial Officer (CFO), effective 1 March 2025. Wallis will join CEO Jacopo Mingazzini in leading the company, restoring the Management Board to two members after Mingazzini had temporarily overseen operations alone since May 2023.

Wallis brings extensive experience in real estate and finance, having previously held positions at Merrill Lynch, JP Morgan, and HSBC. Between 2014 and 2020, he served as Deputy CEO of Aroundtown S.A. in Berlin. Since 2020, he has worked as a consultant on mergers and acquisitions and has taken on interim management and board roles in restructuring projects.

Commenting on the appointment, Dr. Peter Maser, Chairman of the Supervisory Board, emphasized Wallis’s expertise and leadership background. “With Andrew Wallis, we are gaining a seasoned professional with over 30 years of experience in real estate and finance. His industry knowledge and management expertise will support the continued growth of The Grounds,” Maser stated.

The appointment marks a strategic move for the company as it aims to strengthen its leadership team and reinforce its position in the real estate sector.

Institutional investors return to real estate special AIF, with growing interest in debt investments

Institutional investors in Germany are once again expanding their exposure to real estate special alternative investment funds (AIF), with a noticeable increase in appetite during the second half of 2024. Real estate debt, data centres, and light industrial assets have emerged as key areas of interest, while secondary-market transactions are gaining traction as an alternative to primary market investments. Infrastructure investments are also becoming a priority, particularly in renewable energy and diversified funds.

These insights stem from the latest LAGRANGE Fund Monitor survey, conducted by LAGRANGE Financial Advisory GmbH in collaboration with INVESTMENTexpo. The study, based on interviews with institutional investors from insurance, banking, pension funds, and superannuation schemes, indicates a positive shift in sentiment toward real estate special AIFs. The index score for real estate AIF exposure within portfolios reached 6.83 points, up from 6.25 in the first half of the year. The level of interest in infrastructure investments remained steady at 7.10 points, suggesting continued demand.

Shift in Risk Appetite and Asset Preferences

Core-plus investments continue to dominate risk preferences, widening their lead over core investments. Core-plus assets now account for over 48% of investment activity, while core assets make up around 32%, slightly down from 33% in the first half of the year. Interest in value-add investments has declined to 17% from 22%, and opportunistic investments have also dropped to just 3%.

Among real estate asset classes, residential real estate remains the most sought-after, with interest rising to 16% from 13%. Logistics follows closely at 14%, up from 12%. Notably, real estate debt has gained prominence, accounting for 11% of investment activity, nearly doubling from the previous period. Light industrial and data centres, both receiving 10% of responses, have also gained traction, with the latter benefiting from increased demand driven by artificial intelligence and cloud computing. Food-anchored retail real estate attracted 9% of investor interest, while office assets continued to decline, representing just 5% of responses.

International Investment Preferences

Germany has regained investor interest, with 16% of respondents favoring it as a target market, up from 13%. The Benelux region remains popular, rising to 14%, while France and the United States each garnered 12% of responses. The United Kingdom followed with 10%, and Austria attracted 9%. The Nordics and Southern Europe received 6% each, with other markets drawing limited attention.

In infrastructure investments, renewable energy projects, particularly in photovoltaics and wind power, continue to be the primary focus. European markets remain the preferred investment destinations, with 38% of responses, while interest in North America stood at 19% and Asia at just 4%.

Market Challenges and Secondary Market Growth

Financing has emerged as the primary challenge for institutional investors, with 55% citing it as a concern, up from previous levels. High property prices and low cap rates were cited by 26%, while concerns over declining property values and rents were expressed by 13%. A low supply of available assets was identified by just 6% of respondents. In infrastructure AIFs, financing difficulties and the complexity of investment products were each flagged by 25% of investors.

Interest in secondary-market transactions is increasing, with the index score for purchasing real estate special AIF units on the secondary market rising to 7.39 points from 7.06. For the third consecutive period, secondary-market interest has surpassed primary market interest. The inclination to sell units has also grown, with the index score rising to 8.06 points from 7.19.

Preferred secondary-market acquisitions include residential real estate (32%), logistics (23%), and food-anchored retail real estate (22%). Conversely, office real estate funds are the most likely to be sold (59%), followed by logistics (14%), residential (11%), and food-anchored retail (11%).

Expert Insights

Dr. Sven Helmer, Managing Director at LAGRANGE, noted: “The results confirm what we observe in daily investor conversations. The secondary market is becoming an increasingly important exit strategy for special AIF investments.”

Monika Bednarz, also Managing Director at LAGRANGE, highlighted the financing challenges and the growing role of real estate debt: “Many banks are restricting financing, which presents challenges but also creates opportunities for investors to finance real estate debt directly. Current market conditions, with adjusted property values and higher margins, make this an attractive option—provided investors carefully assess the structure of the debt.”

The survey findings suggest that institutional investors are actively adapting to market conditions, with an increased focus on alternative investment strategies and a growing acceptance of new asset classes.

Photo: Monika Bednarz, Managing Director and Dr. Sven Helmer, Managing Director at LAGRANGE

Panattoni expands logistics hub in Zgierz with 70,000 sqm development

Panattoni is expanding Panattoni Park Zgierz by 70,000 square meters, increasing the total area of the logistics complex to 120,000 square meters. As part of this development, a leading drugstore chain has leased 50,000 square meters, establishing the facility as a key distribution hub for its operations in Poland.

Katarzyna Kujawiak, Development Director at Panattoni, noted that the selection of this site for a major distribution center reflects the company’s ability to deliver modern logistics infrastructure that meets industry standards.

The new logistics space will be designed to accommodate hazardous materials (ADR), including alcohols, deodorants, and household chemicals. It will feature advanced fire protection systems, such as in-rack sprinklers, smoke extraction, and ventilation systems, ensuring compliance with high safety standards.

Panattoni Park Zgierz is located 2.5 km from the A2 motorway junction and 13 km from the A1 motorway in Stryków, providing efficient connectivity to both domestic and international markets. Its proximity to Łódź and Zgierz offers access to a skilled workforce. The facility is set to achieve BREEAM Excellent certification, highlighting its commitment to sustainability and eco-friendly solutions.

UBM acquires full ownership of Rezidence Na Plzence in Prague

UBM Development Czechia has increased its stake in the Rezidence Na Plzence residential project from 50% to 100%, reflecting an improvement in market conditions and signaling the company’s intent for further expansion.

UBM reported strong sales in 2024, with 125 apartments sold in Prague, surpassing the company’s total apartment sales for 2023. Demand for high-quality residential properties in the Czech capital remains steady, prompting the company’s decision to increase its investment in the project. Thomas G. Winkler, CEO of UBM Development AG, stated that the residential market downturn has stabilized, with signs of recovery across all UBM markets.

The Rezidence Na Plzence development is situated in the Smíchov district and will comprise 160 apartments with 12,000 square meters of gross floor space and 122 underground parking spaces. The 3,850-square-meter site benefits from strong transport links, including a nearby metro station and a tram stop adjacent to the development. Construction and pre-sales have already commenced, with project completion expected in Q2 2027.

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