MB Advisors Acquires Three Berlin Mixed-Use Properties for BlueRock Group

MB Advisors has acquired three mixed-use residential and commercial properties in Berlin on behalf of BlueRock Group. The assets, purchased from private investors, are located in Charlottenburg and Friedrichshain, with the total transaction volume reported in the low tens of millions of euros.

The acquisitions include two five-storey buildings in Charlottenburg and one property in Friedrichshain. MB Advisors was responsible for sourcing the opportunities, conducting due diligence and managing the transaction process. The firm has also been appointed to oversee ongoing asset management.

One of the Charlottenburg properties, dating from 1916, comprises 27 residential units and two commercial spaces, with approximately 1,800 sq m of lettable area. The second property in the district provides a similar volume of space, with 22 flats and three commercial units. Allgemeine Immobilien-Börse GmbH advised on this acquisition.

The Friedrichshain asset, built in 1900, includes 16 residential units and two commercial units, with a total lettable area of around 2,100 sq m. Engel & Völkers Commercial acted as advisor on the transaction.

MB Advisors will continue to support BlueRock Group as its local partner in Berlin, focusing on the management and positioning of the acquired properties.

Union Investment Signs 12-Year Lease with Industrious at Brussels’ The Precedent

Union Investment has agreed a long-term lease with Industrious at its mixed-use property “The Precedent” in Brussels, covering approximately 2,000 sq m across the first and second floors. The agreement runs for 12 years, with the tenant scheduled to take occupancy in September 2026.

“The Precedent” forms part of the UniInstitutional European Real Estate fund, which has held the asset since 2004. The latest transaction reflects continued demand for fitted and flexible office space, particularly in centrally located assets that have undergone recent upgrades.

Originally completed in 1988, the building was refurbished and extended between 2022 and 2025. The redevelopment retained the existing concrete structure, while adding a timber-built extension. The property now comprises nine floors, with internal staircases connecting several levels and designed to increase natural light penetration and interaction across floors.

Office layouts within the building are designed to be adaptable, with a focus on acoustic performance and workplace functionality. The façade incorporates dynamic glazing technology that adjusts tint levels according to sunlight exposure, supporting daylight access while reducing heat gain and glare.

Following the refurbishment, the building meets Passive House standards under Brussels’ EPB 2015 framework and has achieved BREEAM Outstanding and WELL Gold certifications.

Grudnik centralises logistics with move to Łódź distribution hub

Grudnik has consolidated its warehouse operations in Poland, relocating its central logistics hub to Distribution Park Łódź City as part of a broader strategy to streamline distribution and improve service delivery.

The company has leased approximately 6,700 sqm of warehouse space at the scheme, with Knight Frank advising on the transaction. The new facility will support distribution across north-western and central Poland, reflecting a shift towards a more centralised logistics model.

The move is intended to enhance operational efficiency by reducing delivery times and improving product availability. Grudnik’s network includes partnerships with over 300 European manufacturers and a product range exceeding 100,000 items, supported by its headquarters in Kraków, nine regional branches and a network of Monter Shop outlets.

According to Paweł Szczurek, the relocation marks the next phase of the company’s development, with the updated logistics structure expected to strengthen responsiveness to customer demand.

Located around 4 km from the centre of Łódź, Distribution Park Łódź City offers access to key transport infrastructure, including the A1 and A2 motorways, positioning it as a strategic node within Poland’s logistics network. The property is managed by Hines.

The choice of Łódź underlines the city’s growing role as a national logistics hub, supported by its central location and connectivity to major economic corridors.

Karolina Gałązka noted that the transaction reflects a wider trend of occupiers aligning real estate decisions with long-term operational strategies, particularly in the logistics sector where efficiency and location are increasingly critical.

GCC project pipeline slows as geopolitical tensions disrupt funding momentum

Project activity across the Gulf states lost pace at the start of 2026, with a combination of regional instability, disrupted energy flows and weaker economic expectations beginning to weigh on new contract awards.

Across the Gulf Cooperation Council, the total value of projects awarded in the first quarter fell to around USD 61 billion, marking a noticeable decline compared to the same period last year. The slowdown became more pronounced as the quarter progressed, with a sharp drop in both the number and value of contracts recorded in March, pointing to increasing caution among governments and developers.

The shift reflects a more challenging operating environment. Tensions in the region have affected key shipping routes and energy infrastructure, creating delays in supply chains and raising concerns about the reliability of project timelines. Given the central role of oil and gas revenues in public spending across the Gulf, any disruption to production or exports has a direct impact on the ability of governments to advance large-scale developments.

The downturn has been most visible in the region’s largest markets. Saudi Arabia recorded a steep reduction in project awards compared to a year earlier, following an already slower pace of activity in 2025 as major development programmes adjusted their timelines. In the United Arab Emirates, contract volumes also declined, although the country remained the most active market during the quarter, supported by continued investment in infrastructure and transport-related schemes.

Elsewhere in the region, activity moved in the opposite direction. Kuwait posted a strong increase in project awards, driven by investment linked to economic diversification and upgrades to core infrastructure. Qatar also reported higher volumes, largely supported by expansion in its gas sector, which continues to underpin capital spending.

Despite the uneven performance across individual markets, the broader trend points to a more cautious phase for project delivery in 2026. Slower global growth and more constrained fiscal conditions are expected to limit the pace at which new schemes move forward, particularly in sectors dependent on public funding.

At the same time, the underlying development pipeline across the Gulf remains substantial. Planned projects still run into the trillions of dollars, with construction, transport and power infrastructure expected to account for the largest share of future investment.

This suggests that while near-term activity is likely to remain subdued, the longer-term outlook has not fundamentally changed. A recovery in project awards is still anticipated once regional conditions stabilise and funding visibility improves, with 2027 seen as a potential turning point for renewed momentum.

Source: Kamco Invest

Custom Heating Solution Integrated into Prague’s Werich Villa Renovation

The reconstruction of Werich Villa on Kampa Island highlights how technical systems can be incorporated into historic interiors without compromising architectural character.

The building, which has a Renaissance core dating back to the early 16th century, is closely associated with Czech actor and writer Jan Werich, who lived there from the post-war period until 1980. The villa was significantly damaged during the 2002 floods and later underwent a comprehensive renovation between 2015 and 2017. The project was designed by TaK Architects and included both structural restoration and adaptation for public cultural use.

A key aspect of the refurbishment involved integrating modern heating systems into the historic fabric of the building. According to the project team, this required solutions that would meet current technical and energy standards while remaining visually unobtrusive.

Architect Marek Tichý from TaK Architects worked with Zehnder to develop a tailored approach using the Zehnder Excelsior radiator series. The radiators were selected for their minimal visual profile and flexibility in dimensions, allowing them to be adapted to the constraints of the existing structure and positioned without disrupting the interior layout.

“In historic buildings, it is always difficult to get technical equipment into the space so that it does not disturb the architecture. Excelsior radiators have a very delicate construction of flat profiles, so they appear more like a light architectural element than a massive technical device,” said Marek Tichý.

The renovation reflects a broader approach to historic building upgrades, where technical systems are treated as part of the architectural concept rather than separate additions. At the same time, these systems must comply with modern requirements for thermal comfort and energy efficiency.

“Werich’s villa is a good example of what architects need when renovating historic buildings – a solution that meets performance requirements without interfering with the space,” said Miroslav Váša.

Today, Werich Villa functions as a cultural venue, illustrating how heritage buildings can be adapted for contemporary use while retaining their original character.

Workspace design becomes a core leasing strategy as landlords compete on quality

Workspace design is no longer treated as a tenant-led cost, but has become a core element of leasing strategy and asset positioning, with landlords across Romania and Central and Eastern Europe increasingly backing fit-out quality and embedding workplace experience into how office space is marketed and secured, according to a CIJ EUROPE Q&A with Alex Didea, Managing Partner at Workspace Studio.

“What was once a tenant-only matter is now clearly part of the leasing proposition,” Didea explains. “Landlords are competing through fit-out contributions, upgraded amenities, and hospitality-led environments. It is part of their asset strategy.”

This shift has been driven by a combination of structural and cyclical factors. While elements of the trend were visible before 2020, the post-pandemic environment accelerated it significantly. During periods of weaker demand, landlords increased incentives, often preferring to invest directly into workspace improvements rather than offer cash contributions. This has since reset occupier expectations, with companies actively seeking higher levels of landlord support when relocating.

At the same time, a pronounced flight to quality is reshaping the office market. Buildings that fail to meet modern standards in areas such as air quality, mechanical systems and overall workplace experience are increasingly at risk of obsolescence. “It is no longer optional,” Didea notes. “If a building does not provide a high-quality environment, it will struggle to compete. The outcome is simple: refurbish or become obsolete.”

From desks to value creation environments

Beyond landlord strategy, the fundamental purpose of the office itself is evolving. Traditional models centered on individual workstations are giving way to environments designed around collaboration, interaction and team-based productivity.

“The paradigm has changed,” Didea says. “Before, you provided desks for individuals to work. Now, value is created through collaboration. Offices must support teams working together, not just individuals working alone.”

This transformation reflects broader shifts in how work is organised, influenced by hybrid models, digital tools and increasingly artificial intelligence. As a result, workspace design must address not only physical ergonomics, but also cognitive and social dynamics that influence performance.

Rather than over-accommodating employees, Didea frames this as a necessary response to how value is now created. “It is about creating spaces where people want to be. If employees are comfortable, engaged and connected, they create more value.”

Inclusive design is also becoming more relevant, with workplaces expected to accommodate a wide range of employee needs, from different personality types to varying work styles. The challenge, he notes, is to create environments that support both individual focus and collective interaction.

Cost pressures drive smarter allocation, not lower quality

With fit-out costs rising across the region, occupiers face increasing pressure to balance budgets with the need to deliver attractive workplaces. According to Didea, the solution lies not in reducing quality, but in allocating investment more strategically.

“It is not about cheap versus premium. It is about how you distribute the budget to maximise value.”

This approach often involves prioritising high-impact areas such as collaboration zones, social spaces and key employee touchpoints, while limiting expenditure in less critical areas. The strategy varies depending on how each organisation operates, but the principle remains consistent: align investment with where value is actually created.

Data gaps and the move toward behavioural planning

Despite growing access to workplace data, many companies still design offices based on policy rather than actual usage. Didea points to a persistent gap between stated attendance targets and real occupancy levels, suggesting that traditional planning models are increasingly misaligned with reality.

“The question is whether you design based on policy or behaviour. The answer is behaviour.”

However, while data collection has improved, interpretation remains limited. Existing tools provide insights into presence and movement but offer less clarity on why people use space in certain ways or what drives productivity. As a result, flexibility has become a critical component of modern office design.

“The practical solution is to create adaptable environments,” he says. “Spaces must be easy to reconfigure as you learn how people actually work within them.”

This has driven demand for modular and mobile solutions, allowing companies to adjust layouts without major structural changes as their needs evolve.

Mixed-use and proximity reshape office demand

At the urban level, workplace trends are increasingly tied to broader changes in how cities function. Didea points to the growing importance of mixed-use developments, where offices are integrated with residential, retail and leisure components, creating more complete, 24-hour environments.

“If commuting exceeds 30 minutes, people are far less willing to come to the office,” he says. “This is driving demand for developments that bring everything closer together.”

This shift reflects changing expectations around convenience and quality of life. In contrast, traditional single-use business districts, particularly those reliant on long commutes, are facing structural pressure as utilisation declines and surrounding ecosystems weaken.

More broadly, Didea sees this as part of a transition toward a more shared and experience-driven model of living and working. The emphasis is moving away from ownership toward access, visible in the growth of flexible workspaces, rental housing models and amenity-rich developments designed to support interaction and lifestyle.

His more provocative observation that society may be moving toward more centralised or “communitarian” structures should be understood in this context. Rather than a literal political shift, it reflects the increasing role of integrated systems, whether driven by large organisations or technology platforms, in shaping how people live and work.

For real estate, the implications are practical. Assets are no longer evaluated in isolation, but as part of a broader ecosystem that must support proximity, convenience and community. Developments that combine multiple functions and deliver a cohesive user experience are increasingly outperforming single-use formats.

AI to enhance decision-making, but not replace strategy

Looking ahead, artificial intelligence is expected to play a growing role in workplace design, particularly in improving space optimisation, analysing employee behaviour and enhancing cost efficiency. However, Didea emphasises that AI will support, rather than replace, strategic decision-making.

“AI will make workplace planning more evidence-based, but it depends entirely on the quality of data and governance behind it.”

By providing deeper insights into how people interact within offices, AI could help reduce inefficiencies and enable more targeted investment. At the same time, challenges around data quality, interpretation and privacy remain significant.

A widening gap between prime and obsolete assets

The convergence of these trends is reinforcing a growing divide within the office market. High-quality, well-located buildings with strong amenities and adaptable design are increasingly commanding premium rents and attracting demand. Meanwhile, secondary assets risk rapid decline unless significant capital is deployed to upgrade them.

“In today’s market, there is no middle ground,” Didea concludes. “You either invest and stay relevant, or you fall behind.”

As workspace design continues to evolve alongside technology, workforce expectations and urban development patterns, its role within real estate strategy is set to deepen further, positioning it as a key driver of both leasing performance and long-term asset value.

Romania’s Real Estate Pipeline Narrows as Financing, Permitting and Tenant Demands Reset the Market

Real estate development in Romania is entering a more selective phase, shaped by tighter financing conditions, persistent permitting challenges and evolving tenant expectations. In a CIJ EUROPE Q&A, Mădălina Mitan, Partner at Schoenherr in Romania outlines how these factors are filtering which projects move forward, while also redefining how investors assess risk and structure transactions.

Retail and mixed-use developments continue to attract interest, particularly in a market that remains undersupplied relative to other European countries. Demand is especially visible outside Bucharest, where modern retail formats are still expanding. However, execution conditions have become more demanding. Retail parks and convenience-led schemes remain active, but mixed-use projects are proving more complex to finance and permit, requiring stronger capitalisation and more deliberate structuring.

Financing constraints are playing a central role in reshaping the development landscape. According to Mitan, lenders are requiring higher levels of pre-leasing and are less willing to take on development risk. This has led to a clear divide between well-capitalised developers with established banking relationships and those reliant on higher leverage. The latter group is increasingly forced to reconsider deal structures or delay projects.

In the residential sector, recent legislative changes have added further pressure. The shift away from pre-sale driven financing models is pushing developers towards greater reliance on bank funding or equity. As a result, legal advisers are seeing a rise in restructurings, joint ventures and forward purchase agreements as market participants seek alternative routes to project viability.

Permitting remains one of the most significant and often underestimated risks in the Romanian market. While the legal framework itself is considered functional, the capacity and consistency of local authorities vary widely. Bucharest continues to present the most complex environment, with ongoing uncertainty linked to suspended or annulled urban planning documentation affecting development timelines and investment decisions. In response, developers are adapting by targeting already permitted sites, phasing projects around existing approvals or pursuing administrative litigation.

Regional cities offer a more mixed picture. Some locations have developed more predictable administrative processes, while others face similar institutional constraints to the capital. This variability is reinforcing the need for project-specific risk assessment, with permitting increasingly treated on par with financial considerations.

At the same time, investor strategies are evolving. Diversification is being driven both by long-term structural trends and by adjustments within traditional sectors. Logistics and industrial assets continue to benefit from strong underlying demand linked to e-commerce and nearshoring, while interest in build-to-rent is growing despite the need for further regulatory and transactional development. Weakness in the office sector has also encouraged investors to explore alternative asset classes.

Tenant expectations are also reshaping development and leasing strategies. Demand for experiential retail, including food, leisure and wellness components, is now seen as a baseline requirement rather than a differentiator. Lease structures are becoming more flexible, with shorter terms, break options and turnover-linked rents increasingly common. At the same time, ESG considerations are moving into the core of lease negotiations, with sustainability obligations becoming standard, particularly among international occupiers.

Looking ahead, the next 6 to 12 months are expected to remain selective. Projects with secured permitting, committed tenants, structured financing and strong sponsors are most likely to proceed. Regional retail parks and upgrades to existing assets appear best positioned in the near term, while developments in Bucharest affected by planning uncertainty and residential schemes yet to adapt to new financing realities may face delays.

Reflecting on the broader evolution of the market, Mitan notes that the legal and transactional environment has undergone a significant transformation over the past three decades. From early challenges related to property rights and restitution, the market has developed into one that now handles complex financing structures, ESG-linked agreements and cross-border investment flows. While institutional inconsistencies and regulatory unpredictability remain, they are increasingly understood and managed by experienced market participants.

The current cycle, she suggests, is not halting development but refining it. As financing, permitting and operational requirements become more stringent, the market is shifting towards projects that are robust from the outset, both legally and financially.

CPI Europe AG completes disposal of landmark Prague asset

CPI Europe AG has completed the sale of a historic mixed-use property located at Na Příkopě 14 in Prague, marking the conclusion of a long-term asset management cycle.

The building, held by CPI Europe since 2006, comprises approximately 17,200 sqm of lettable space and is considered one of the more prominent office and retail assets in the city’s historic core. The disposal follows a period of active asset management, during which the company repositioned the tenant mix, refurbished the premises and enhanced the building’s overall performance.

The retail component has undergone notable changes in recent years. Previously occupied by Hamleys and later by The Playground, the space is now being prepared for a new flagship fashion tenant expected to open in autumn. Other occupiers include White & Case and Lidl. The property holds an LEED Platinum rating, reflecting its sustainability credentials.

According to Pavel Mechura, the transaction reflects the completion of the investment cycle for the asset and highlights the role of active management in positioning properties for long-term investors.

The Na Příkopě 14 disposal represents CPI Europe’s second transaction exceeding €100 million in April. The company intends to allocate proceeds towards debt reduction and continued investment, with a focus on expanding its STOP SHOP retail park platform across Central and Eastern Europe. Current development activity includes four projects in Croatia, with additional schemes planned in Serbia, Hungary and Croatia for the 2027–2028 period.

Czech Foreign Claims Fall to CZK 12.4bn at End-2025

The Ministry of Finance of the Czech Republic reported that the country’s claims against foreign states totalled CZK 12.4 billion at the end of 2025, a decrease of around CZK 1 billion compared with the previous year.

According to the ministry’s latest report, repayments reached CZK 172.4 million in 2025, up by approximately CZK 20 million year-on-year.

The largest outstanding claim is against Kazakhstan, amounting to CZK 2.9 billion, although the final value of the debt has not yet been agreed. Discussions on its settlement have been delayed, and the Czech authorities are assessing further options.

The second-largest exposure is to Sudan, at CZK 2.8 billion. While the debt has been acknowledged, repayment negotiations are currently on hold due to the country’s political situation.

Other claims are spread across several countries, including Cuba, Ukraine, Iran and Iraq, as well as multilateral institutions such as the International Bank of Economic Cooperation and the International Investment Bank.

Repayments during 2025 were mainly received from Iraq under a 2006 agreement, accounting for CZK 114.4 million. Algeria contributed CZK 50.3 million under a 2024 arrangement, while smaller amounts were repaid by Belarus and international financial institutions.

The ministry’s data do not include so-called special loans, which relate primarily to historical transactions such as military supplies. The most recent available data, from 2018, put these claims at CZK 7.6 billion, mainly linked to Libya and Cuba.

Overall, the figures indicate a gradual reduction in the Czech Republic’s external claims, although repayment progress remains uneven and dependent on bilateral negotiations and political conditions in debtor countries.

Mixed-Use Redevelopment Planned at Galerie Modřany in Prague

A redevelopment project is planned for the site of the former Prior department store in Prague’s Modřany district, where a new mixed-use scheme will combine retail, office and residential functions.

The project, known as Galerie Modřany, is being developed by Prior 12 in partnership with the Prague 12 municipality under a public-private partnership structure. FETTERS management has been appointed to oversee development and project management.

The scheme will replace the existing building with two eleven-storey structures, delivering approximately 8,700 sqm of retail and office space. Plans also include 102 apartments intended for long-term rental and 109 units for sale.

Construction is expected to begin in the second quarter of 2027, with completion targeted for 2029. The project has already received an environmental impact assessment and is currently undergoing further permitting procedures.

FETTERS management has been involved since 2022, providing development management services and representing the investor throughout the planning phase. Its role will extend to overseeing construction, coordinating tenant leasing and managing residential sales and marketing.

“For us, the Modřany Gallery represents not only another multifunctional project, but also an opportunity to participate in the development of an important location in Prague 12,” said Tomáš Fetters.

The development will include a supermarket, retail units, restaurants and office space, alongside residential units ranging from smaller apartments to larger family units. Underground parking and storage facilities are also planned.

According to Petr Šula, the project reflects a collaboration between public and private sectors aimed at upgrading the area and introducing additional services and functions.

The buildings are being designed to meet LEED Silver certification standards, with a focus on energy efficiency and systems such as heat recovery, ventilation and shading.

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