Former Motol hospital Director Ludvík Files complaint over pre-trial detention

Miloslav Ludvík, the former director of Motol University Hospital, has filed a constitutional complaint challenging the court’s decision to keep him in custody. His lawyer, Simona Kadlecová, told the Czech News Agency that the courts violated his right to a fair trial, arguing that the rulings lacked clear justification and failed to meet legal standards.

Ludvík has been in pre-trial detention since late February, facing charges of subsidy fraud, harming EU financial interests, accepting bribes, and attempted money laundering. If convicted, he could face up to 12 years in prison. The District Court for Prague 5 ordered his detention citing concerns he might flee, continue criminal activity, or influence witnesses. An appeal was later dismissed by the Prague City Court.

Kadlecová criticized the courts for failing to provide concrete evidence supporting these concerns. “The Municipal Court ignored all objections raised in our appeal,” she said. “Neither court provided adequate reasoning, violating my client’s right to a fair trial and unlawfully restricting his personal freedom.”

Court documents reviewed by the Czech News Agency show the district court mistakenly conflated decisions about Ludvík with those of his co-defendant, former deputy director Pavel Budinský. For example, the court referenced bail guarantees offered by Budinský, though Ludvík had instead proposed alternatives such as a travel ban and electronic monitoring.

Kadlecová also accused the court of relying heavily on police reports without thoroughly reviewing surveillance evidence that underpins the case. She rejected claims that Ludvík had foreign ties, stating he neither owns property nor has ever lived abroad.

Ludvík has also filed a complaint challenging the initiation of his prosecution, which remains undecided by the public prosecutor. Similar complaints have been filed by other defendants in the case. Kadlecová noted that defense teams only recently received transcripts of surveillance recordings, despite media leaks suggesting otherwise. “We’re still waiting for access to the original recordings, which are crucial for our defense,” she said, adding that witness interviews are ongoing.

Police allege that Ludvík and Budinský accepted bribes from contractors providing services to the hospital, including construction, cleaning, and maintenance. Prosecutors claim that kickbacks were a precondition for awarding contracts. Co-defendant and lawyer Miroslav Jansta is accused of helping to launder the illicit funds.

Following police raids in February, the Minister of Health removed Ludvík from his post. Authorities have so far seized assets exceeding CZK 100 million from the accused. Ludvík’s appeal against the asset seizure was rejected by the České Budějovice Regional Court.

Source: CTK

Do banks properly assess ESG requirements for shopping centres?

As sustainability standards tighten across Europe, shopping centre owners and tenants are questioning the true impact of banks’ ESG (Environmental, Social, and Governance) requirements on retail real estate. According to the Association of Polish Employers of Trade and Services (ZPPHiU), landlords are increasingly imposing costly modernization demands under the guise of ESG compliance—often passing these costs onto tenants, despite little evidence of environmental or operational benefit.

“Banks play a key role in financing green investments, but it’s unclear whether they are verifying if these investments are truly ethical, rational, and effective,” said Zofia Morbiato, Director General of ZPPHiU. She warned that some landlords are using ESG mandates to justify expensive upgrades that serve more to boost property valuations than to improve environmental outcomes or customer satisfaction.

Among the controversial measures are requirements for tenants to replace fully functional storefronts or fixtures solely to meet new aesthetic or material standards. “It raises the question—should the perceived ESG value of a shopping centre be tied to the type of glass in tenant shop windows?” Morbiato asked.

A recent KPMG report, Property Lending Barometer 2024, underscores the growing role of ESG in commercial real estate lending. The study found that 75% of surveyed banks in Central and Eastern Europe, including Poland, the Czech Republic, and Hungary, now incorporate ESG criteria into their lending decisions. For many banks, failure to meet these standards can result in loan rejection. “Investors are increasingly walking away from projects that don’t align with ESG expectations,” noted Monika Dębska-Pastakia, Associate Partner at KPMG Poland.

However, research shows a disconnect between landlords’ ESG-driven renovations and consumer priorities. According to a study by Omnisense, shopping centre visitors care more about practical amenities—such as clean, free, and accessible toilets (cited by over 85% of respondents), clear signage, parking availability, and store selection—than about the type of flooring or visibility of ceiling installations.

Meanwhile, shopping centre footfall is declining. Proxi.cloud data for 2024 shows a 3.5% drop in visits and a 3.1% decline in unique visitors year-on-year. UCE Research and Proxi.cloud also report a 7% fall in customer traffic during this year’s winter sales compared to 2023, driven largely by e-commerce growth and evolving brand strategies.

ZPPHiU argues that while ESG requirements can add long-term value, they should not burden tenants with unjustified costs or renovations. Under current EU regulations, ESG obligations primarily apply to property owners and require them to report environmental impacts—not to mandate immediate modernization at tenant expense.

Morbiato called for a collaborative approach to “green annexes” in lease agreements, urging landlords and tenants to jointly define fair and transparent standards. “ESG policies should balance responsibilities and deliver tangible benefits to both parties—not just increase operating costs while offering unclear returns to tenants,” she emphasized.

While landlords tout ESG measures as tools for cost savings, risk reduction, and innovation, tenants are demanding proof. “We keep hearing promises about optimization and benefits, but we’re still waiting for concrete examples and transparent reporting on how these initiatives translate into actual savings,” Morbiato said.

As sustainability becomes an integral part of commercial real estate finance, both landlords and tenants are calling on banks to ensure that ESG-driven investments are not only compliant on paper, but also meaningful in practice—delivering genuine environmental outcomes without imposing disproportionate costs.

Source: ZPPHiU

Industrial property market in Slovakia shows signs of cooling as vacancy rates rise

The Slovak industrial real estate market is entering a period of cooling after several years of strong performance. According to the latest figures from the Industrial Research Forum, demand slowed notably in early 2025, with rising vacancy rates and more cautious developer activity shaping the landscape.

Currently, Slovakia’s stock of modern industrial premises for lease totals 4.55 million square meters. Despite continued construction, it’s clear that developers are more risk-averse, prioritizing projects with secured pre-leases rather than speculative builds. In the first quarter of this year, 39,500 square meters were delivered to the market across two buildings, with 92% already pre-let at completion.

From a logistics operator’s perspective, this shift isn’t surprising. “We’re seeing clients, particularly in the automotive sector, pressing pause on expansion plans as they navigate ongoing economic uncertainty,” explains Patrik Janščo, Head of Industrial Agency at Cushman & Wakefield Slovakia. “It’s a wait-and-see environment. Many are focused on optimizing existing operations rather than committing to new space.”

The largest completion in Q1 2025 was Panattoni Park Bratislava North II, adding 23,300 square meters near the capital. Sihot’s Park in Trenčín followed with 16,200 square meters. Meanwhile, construction remains robust, with 321,200 square meters under development—a year-on-year increase. However, 53% of this pipeline, or 214,900 square meters, is already pre-leased, reflecting developers’ shift away from speculative building. The dominant tenants securing future space are 3PL providers, automotive firms, and e-commerce players.

That said, new starts are slowing. Only three buildings totaling 63,700 square meters broke ground in the first quarter. Market sentiment indicates that developers will continue to limit speculative supply as demand softens. “We expect the overall volume of new construction to decline over the year,” the Forum notes.

Gross take-up, including renewals, totaled 65,900 square meters in Q1, marking declines both year-on-year and quarter-on-quarter. Renegotiations accounted for 40% of this figure, or 25,400 square meters, suggesting many occupiers are opting to stay put rather than relocate. Net demand came in at 37,400 square meters, with 28,300 square meters attributed to new leases, while the remainder reflected pre-leases signed during construction.

Regionally, Bratislava and Košice remain the strongest demand hubs, though the pace of transactions has tempered. The largest deal this quarter was a renegotiation in eastern Slovakia by an automotive tenant covering 15,300 square meters.

Perhaps the most telling metric is the vacancy rate, which rose to 5.45% at the end of the first quarter—up nearly a percentage point year-on-year and the highest in two years. Total vacant space now stands at 248,200 square meters, with 46% of this located in the Bratislava region and 26% in Trnava.

For logistics operators and occupiers, this shifting landscape brings opportunities for negotiation and greater choice in key locations, but also signals a market recalibration after years of rapid expansion. Those planning new operations or consolidations should leverage this window to secure favourable lease terms before the next cycle of tightening begins.

Source: SITA and comp.

Polish government approves draft law on financial sector digital resilience and European green bonds

The Council of Ministers has approved a draft law aimed at strengthening the operational digital resilience of Poland’s financial sector and regulating the issuance of European green bonds. The legislation, proposed by the Minister of Finance, seeks to align Polish law with European Union regulations, including the Digital Operational Resilience Act (DORA).

The new regulations are intended to enhance the security of information and communication technologies (ICT) used by financial institutions. EU legislation sets uniform requirements for network and information system security across financial entities, covering institutions such as banks, payment service providers, investment firms, and central securities depositories.

The draft law grants the Polish Financial Supervision Authority (KNF) oversight responsibilities to ensure compliance with DORA. The KNF will have the authority to conduct audits and monitor the implementation of cybersecurity measures within financial organisations. The law also establishes a legal framework for cooperation and information exchange between the KNF and European supervisory bodies, including the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.

In addition to digital resilience measures, the legislation addresses the supervision of issuers of European green bonds. Environmentally sustainable bonds are considered key instruments in financing the transition to a low-carbon economy, but differences in market standards have posed challenges for investors and issuers. Under the new law, the KNF will oversee compliance with EU green bond standards across a range of entities, including banks, investment funds, insurers, and companies from sectors such as energy and construction. The KNF’s supervisory powers will include the ability to suspend public offerings, subscriptions, or sales of green bonds in cases of non-compliance.

The law is scheduled to take effect the day after its publication.

ZSZ Investment Fund doubles profits, grows retail and industrial holdings

The ZSZ Investment Fund, led by former ČEZ CEO Martin Roman, posted a record net profit of CZK 1.4 billion in 2024, doubling its earnings from the previous year. The fund also saw a parallel increase in the value of its assets, reflecting its aggressive expansion strategy across Central Europe.

A key driver of this growth was the fund’s 61% stake in SCI Eagle, a company that owns and operates six shopping centres in Poland. The portfolio, acquired last year, includes properties located in Warsaw, Bydgoszcz, Łódź, Szczecin, Toruń, and Wrocław, with a total leasable area of 219,000 square metres. The acquisition marked one of the largest retail property transactions in the Polish market in recent years, strengthening ZSZ’s presence in the region’s retail sector.

In the Czech Republic, ZSZ also expanded its industrial real estate holdings. The fund secured full ownership of industrial parks in Kolín and Pardubice, increasing its original one-third stake to full control. These parks serve a mix of logistics, manufacturing, and light industrial tenants and are viewed as strategic assets amid growing demand for industrial space near Prague and major transport corridors.

Additionally, the fund made significant investments in development projects beyond retail and industrial properties. It partnered with UDI Group on the redevelopment of the Smíchov railway station area in Prague, acquiring substantial land positions in what is one of the capital’s largest urban regeneration schemes. The project is expected to transform the former railway site into a mixed-use neighbourhood featuring residential, office, and retail components.

“Our results reflect not only strong asset performance but also our strategic focus on growth markets in Central Europe,” said Martin Roman, Chairman of the ZSZ Investment Fund. “We will continue to seek opportunities in retail, industrial, and development sectors, while expanding our footprint in high-potential locations.”

The fund’s diversification across asset classes and countries has helped mitigate market risks and position ZSZ as a key player in the regional investment landscape. Analysts note that ZSZ’s combination of stable income from retail assets and value-add potential from redevelopment projects offers a balanced portfolio strategy.

Looking ahead, ZSZ plans further acquisitions, particularly in logistics and urban redevelopment, as it capitalises on rising demand for modern space in both Poland and the Czech Republic. The fund is reportedly evaluating additional projects in secondary cities, where growth in e-commerce and regional economic activity are driving new real estate requirements.

Source: e15 and comp.

EU announces plan to end dependency on Russian energy

The European Commission has unveiled a roadmap to end the European Union’s dependency on Russian energy imports, aiming to phase out Russian gas, oil, and nuclear energy in a coordinated and secure manner. The initiative, part of the REPowerEU Roadmap presented today, seeks to ensure stable energy supplies and prices while reinforcing Europe’s energy security.

Despite progress under the REPowerEU Plan and sanctions imposed following Russia’s invasion of Ukraine, the EU experienced a rebound in Russian gas imports in 2024. The Commission warned that continued reliance on Russian energy poses a security risk, calling for more coordinated action across Member States.

“The war in Ukraine has brutally exposed the risks of blackmail, economic coercion, and price shocks,” said Commission President Ursula von der Leyen. “We have diversified our energy supply and drastically reduced Europe’s former dependency on Russian fossil fuels. It is now time for Europe to completely cut off its energy ties with an unreliable supplier. Energy coming to our continent should not finance a war of aggression against Ukraine.”

The roadmap outlines a gradual phase-out of Russian energy imports, with measures designed to maintain energy security and limit impacts on prices and markets. From 2025, global liquefied natural gas (LNG) supplies are expected to increase significantly while EU gas demand will decline. The EU aims to replace up to 100 billion cubic meters of natural gas by 2030, cutting demand by 40 to 50 billion cubic meters by 2027. At the same time, LNG capacity is projected to rise by 200 billion cubic meters by 2028—five times the EU’s current imports of Russian gas.

The European Commission plans to submit legislative proposals next month to implement the roadmap. Member States will be required to prepare national plans by the end of the year, detailing how they will contribute to the phase-out of Russian gas, oil, and nuclear energy.

As part of the plan, the Commission will improve transparency and monitoring of Russian gas within EU markets. New contracts for Russian gas, whether pipeline or LNG, will be prohibited, and existing spot contracts will be terminated by the end of 2025. The EU aims to reduce Russian gas imports by one-third by the end of this year, with all remaining imports to be phased out by the end of 2027.

The roadmap also includes actions to address the use of Russia’s so-called “shadow fleet” in transporting oil. In the nuclear sector, upcoming proposals will cover restrictions on imports of enriched uranium and related materials from Russia, as well as limits on new supply contracts under the Euratom Supply Agency. A European Radioisotopes Valley Initiative is planned to secure the EU’s supply of medical radioisotopes through increased domestic production.

The roadmap builds on measures taken since the launch of the REPowerEU Plan in May 2022. Since then, the EU has reduced Russian gas imports from 150 billion cubic meters in 2021 to 52 billion in 2024, cutting Russia’s share of EU gas imports from 45% to 19%. Russian coal imports have been banned, while oil imports have dropped from 27% at the start of 2022 to 3% today. Member States using Russian-designed VVER nuclear reactors have begun transitioning to alternative fuel sources.

By fully phasing out Russian energy, the EU aims to mitigate security risks, strengthen its economy, and advance its decarbonisation goals, aligning with broader initiatives such as the Competitiveness Compass, the Clean Industrial Deal, and the Affordable Energy Action Plan.

UDI Group sells Sázava Logistics Park to SEGRO European Logistics Partnership

Czech international developer UDI Group has completed the sale of its logistics complex, Sázava Logistics Park, located at the 34th kilometre of the D1 motorway near the village of Ostředek. The property was acquired by SEGRO European Logistics Partnership. The parties have agreed not to disclose the sale price.

The park comprises four fully leased warehouses with a total area of over 46,000 square metres. The facility, which required an investment of more than €36 million to develop, currently provides employment for approximately 300 people.

“The Sázava Logistics Park was completed in 2023, but at that time, investor interest in the Czech market was subdued due to the war in Ukraine and the energy crisis,” said Jan Chromeček, Development Director at UDI Group. “We decided to wait for more favourable market conditions to achieve our targeted price. We are pleased the project has been acquired by SEGRO, a company with over a century of experience in logistics real estate across Europe.”

UDI Group, originally from the Czech Republic, is an international developer active in residential, office, and industrial projects across Europe and Latin America. The company currently has 21 projects in preparation, with expected revenues of €2.5 billion in the coming years.

Following the sale, UDI Group continues to expand its logistics portfolio and is planning a new complex on the D5 motorway. The upcoming project will include three warehouses totalling 130,000 square metres, with an estimated investment of €140 million.

Czech developer Domoplan to build CZK 4 billion luxury resort in Croatia

Czech developer Domoplan has announced plans to invest CZK 4 billion in the construction of a luxury resort, Plava Uvala, on the Croatian island of Pag. The five-star complex, covering 300,000 square metres, is designed to accommodate up to 3,000 guests and is expected to be completed between late 2027 and early 2028.

The resort will feature 300 luxury bungalows with sea views, six swimming pools, a two-kilometre beach, an 800-seat amphitheatre, and a marina for sailboats and boats. Additional amenities will include a dedicated camping area for motorhomes, each with private bathroom facilities.

Domoplan’s owner, Tomáš Vavřík, said the land for the resort had been a long-term target. “Acquiring this site has been my dream for 25 years,” he noted. The company has secured key building permits and is progressing through the remaining administrative approvals.

Financing for the project will come from multiple sources, including an international investment fund established in partnership with Family Ace. Domoplan will contribute from its own resources, while additional funding will be raised from Czech and international investors and supplemented by bank loans.

The Plava Uvala project marks Domoplan’s third venture abroad. The company previously launched two residential projects—one in Belgrade, Serbia, and another in Samobor, Croatia. Sales of apartments in Samobor are already underway, while sales in Belgrade are scheduled to begin this autumn.

Polish government approves deregulation package aimed at simplifying tax rules

The Council of Ministers has adopted a package of draft laws as part of an ongoing deregulation process, introducing changes intended to increase legal certainty for taxpayers, simplify administrative requirements, and clarify procedures following tax and customs inspections.

One of the key measures is an amendment to the Tax Ordinance Act that introduces a six-month vacatio legis for new tax laws and amendments submitted to the Sejm. This transition period is designed to protect taxpayers from sudden regulatory changes and allow time to adapt to new obligations. The rule will apply in cases where legislative changes introduce less favourable conditions for taxpayers. The measure is scheduled to take effect on 1 January 2026.

Another change involves raising the threshold for VAT exemption from PLN 200,000 to PLN 240,000 in annual sales. The adjustment applies both to businesses already operating and to those starting during the tax year, who will continue to calculate eligibility proportionally. This amendment will also take effect from 1 January 2026.

The government also approved the elimination of the requirement for large corporate income tax (CIT) payers to prepare and publish information about their implemented tax strategy. The Ministry of Finance estimates that nearly 4,300 taxpayers will benefit from the removal of this administrative obligation. This amendment is set to come into force the day after its publication in the Journal of Laws.

Additional changes were introduced in the handling of tax returns following customs and fiscal inspections. Under the proposed amendment, audited taxpayers will be allowed to submit a partial correction of their tax returns after an inspection, rather than being required to fully accept all identified irregularities. Furthermore, taxpayers will be permitted to submit an “original” tax declaration within 14 days after an inspection begins or ends, addressing previous uncertainties about the recognition of such declarations during the inspection process. These provisions are also scheduled to take effect on 1 January 2026.

The government said the measures are aimed at improving the stability and predictability of tax law, reducing administrative burdens, and streamlining post-inspection procedures for businesses.

Poland launches PFR Deep Tech programme with PLN 600 million for advanced technology investments

The Ministry of Finance, the Polish Development Fund (PFR), and PFR Ventures have launched the PFR Deep Tech programme, aiming to support investments in advanced technologies. The programme will have a budget of PLN 600 million, with PLN 300 million provided by PFR funds and an additional PLN 300 million contributed by private and institutional investors.

The initiative will operate through a fund structure, directing capital to venture capital fund managers who will invest in high-potential technology projects. The programme is designed to foster the development of advanced technologies, including dual-use solutions with both civilian and military applications.

“In today’s geopolitical reality, defence and new technologies are key pillars of a strong state and competitive economy,” said Andrzej Domański, Minister of Finance. “PFR Deep Tech is one of the first initiatives to build a coherent ecosystem that combines public capital, private investment, and expertise to support innovation and investment.”

Jakub Jaworowski, Minister of State Assets, added: “The state should not replace market mechanisms but support forward-looking projects that are strategically important. Innovation in the dual-use sector is especially critical in the current geopolitical context.”

Piotr Matczuk, President of the Management Board of PFR SA, highlighted that the programme aligns with PFR’s mission to strengthen Poland’s long-term economic and defence resilience. “With the launch of the programme, we join global leaders in fostering the development of deep and dual-use technologies,” he said.

Aleksander Mokrzycki, Vice-President of PFR Ventures, noted that the first investment decisions are expected in the coming months. “We have strong market insight and experience in managing fund programmes, allowing us to efficiently launch operations in this strategic area,” he said.

The PFR Deep Tech programme was developed following analysis of similar initiatives in France, the UK, and the US. The Ministry of National Defence is also involved in the project, building on its existing cooperation with PFR Ventures under the NATO Innovation Fund.

The programme plans to allocate capital to 3–5 specialised venture capital funds, with the expectation that funding will ultimately support 50–80 advanced technology projects. Target sectors include artificial intelligence, defence, robotics, cybersecurity, quantum technologies, and space technologies, with a focus on projects offering dual-use potential.

“We must use every available tool to support the development of breakthrough technologies in Poland,” said Krzysztof Gawkowski, Deputy Prime Minister and Minister of Digital Affairs. “I believe the launch of the PFR Deep Tech programme will provide new opportunities for Polish innovators, and I hope this is just the beginning.”

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