Blackstone acquires ten logistics parks in the Czech Republic in €470 million deal

The Czech Office for the Protection of Competition (ÚOHS) has approved the acquisition of ten logistics parks in the Czech Republic by US investment giant Blackstone. The properties, previously owned by TPG Real Estate, were purchased for EUR 470 million, equivalent to nearly CZK 12 billion. According to Bloomberg, this transaction ranks among the largest real estate deals in Europe last year.

Blackstone is acquiring logistics properties totaling half a million square meters through its Luxembourg-based entity, United Crystal. The transaction includes the purchase of four Czech companies: CTRE Fund, CTRE Development, CTRE Říčany, and Contera Real Estate.

According to ÚOHS, the acquisition will not hinder competition in the market. “The acquired companies, through their subsidiaries, are active in leasing and managing logistics warehouses and distribution centers in the Czech Republic and Slovakia. The proposed concentration will not result in a significant impediment to competition. The decision has already become final,” the authority confirmed.

The logistics parks were developed in partnership with Contera, a Czech investment and development company. Contera commented on the deal on its website, stating: “Blackstone has agreed to acquire CT Real Estate, a portfolio of ten logistics parks, from TPG Real Estate, with whom Contera has successfully partnered on its industrial portfolio since 2019. Additionally, Blackstone has committed to buy a portion of the stake directly from Contera, securing a majority stake in Contera’s industrial portfolio upon closing of the transaction.”

Despite Blackstone’s majority acquisition, Contera will maintain a minority stake in the portfolio while continuing as property manager and developer.

Blackstone, headquartered in New York, is a leading alternative investment firm with diverse portfolios across real estate and various fund types. Established in 1985 by Peter Peterson and Stephen Schwarzman, the company has grown to employ nearly 5,000 people worldwide. In 2023, Blackstone reported revenues of $8 billion (approximately CZK 191 billion).

This acquisition underscores Blackstone’s strategic focus on expanding its European logistics footprint while solidifying its position as a key player in the global real estate market.

Source: CTK

German and Czech breweries dominate Russian beer market amid controversy

German and Czech breweries were the leading suppliers of beer to Russia last year, despite the ongoing conflict in Ukraine and international sanctions. According to Russian state statistics cited by the RIA Novosti news agency, Germany retained its position as the largest exporter, while Czech exports to Russia surged. In contrast, Danish breweries, led by Carlsberg, have ceased exports entirely.

Germany shipped 105,300 tonnes of beer to Russia between January and October 2024, remaining the top supplier despite a 24% year-on-year decline in exports. The Czech Republic followed as the second-largest supplier, with its beer exports rising by 27% to 33,100 tonnes during the same period. This increase translates to nearly 62 million pints, according to the Czech Statistical Office (ČSÚ).

Russia ranked as the third most important market for Czech beer exports, trailing only Germany and Slovakia. The value of Czech beer exports to Russia in the first ten months of 2024 was slightly over CZK 819 million, a significant jump from CZK 613 million in 2019.

“Despite the invasion of Ukraine and Western sanctions, the Czech Republic exported nearly two million more pints of beer to Russia last year. For the first time ever, the value of these exports surpassed one billion crowns,” said Lukáš Kovanda, chief economist at Trinity Bank.

The surge in Czech beer exports to Russia has drawn criticism. Poland’s Rzeczpospolita daily remarked, “Czech brewers have no ethical doubts, putting profit above all else, regardless of the consequences.”

Meanwhile, Chinese beer exports to Russia have grown significantly. China, which ranked sixth in 2023, rose to third place last year, exporting 29,800 tonnes of beer—a 1.6-fold increase. Lithuania followed in fourth place with 24,300 tonnes, while Belgium dropped to fifth after reducing shipments by a third to 18,400 tonnes.

Poland, Latvia, Kazakhstan, the Netherlands, and Austria rounded out the top ten suppliers to Russia, collectively contributing to a robust beer trade despite geopolitical tensions.

Russia’s domestic beer industry is also adapting to the changing landscape. The country’s largest brewer, Baltika, was seized from Denmark’s Carlsberg by the Kremlin and has since launched a new brand targeted at the Chinese market. Similarly, Russia’s second-largest brewer is producing beer for Chinese partners at its Khabarovsk plant in the Far East.

Despite these efforts, Chinese imports of Russian beer have decreased by about 25% since early 2024, underscoring the competitive edge of foreign suppliers over Russian producers in the Chinese market.

The contrasting strategies of various beer-exporting nations highlight the complexity of the global market amid geopolitical tensions. While Germany and the Czech Republic continue to profit from their Russian beer trade, others, like Denmark, have withdrawn entirely, reflecting differing stances on ethical and economic priorities.

Source: CTK

Czech Republic’s foreign trade surplus declines to CZK 23.6 billion in November

The Czech Republic’s foreign trade balance in November 2024 reflected a combination of progress and challenges, as reported by the Czech Statistical Office (ČSÚ). The country recorded a trade surplus of CZK 23.6 billion, representing a year-on-year decline of CZK 4.2 billion. While certain sectors, such as motor vehicles and electrical equipment, contributed positively to the trade balance, others, including metal products and machinery, experienced significant setbacks.

A closer look reveals that the trade in motor vehicles was a major contributor to the surplus, with an increase of CZK 2.2 billion compared to the previous year. The oil and gas trade deficit also decreased by a similar amount, further bolstering the overall balance. Electrical equipment trade added another CZK 2.0 billion to the surplus, highlighting its growing importance in the country’s export portfolio.

However, these gains were offset by weaker performances in other sectors. The surplus in metalworking product trade narrowed substantially, decreasing by CZK 4.3 billion. Similarly, the trade in machinery and equipment suffered a loss of CZK 2.8 billion, while the deficit in base metals trade deepened by CZK 1.6 billion.

Trade relations with the European Union (EU) also showed signs of strain, as the surplus in foreign trade with EU countries decreased by CZK 3.9 billion year-on-year. Meanwhile, the trade deficit with non-EU countries widened slightly, increasing by CZK 0.5 billion.

On the export and import front, exports in November grew by 4.4% year-on-year to CZK 424.5 billion, while imports increased at a faster rate of 5.8%, reaching CZK 400.9 billion. The faster growth in imports compared to exports continued a trend observed throughout the year.

“Imports have once again grown faster than exports,” said Jana Mazánková, Head of the ČSÚ’s Trade Balance Department. “For instance, imports of metal products, mainly originating from Germany, Slovakia, and China, rose by almost 26% year-on-year. Additionally, imports of food products from Germany, Poland, and Spain grew by over CZK 2 billion compared to the previous year.”

On a month-to-month basis, after seasonal adjustments, exports increased by 0.5%, while imports fell slightly by 0.7%. These figures suggest a degree of stabilization in trade activity, albeit with continued volatility in certain sectors.

Cumulatively, from January to November 2024, the trade surplus reached CZK 219.1 billion, marking a significant increase of CZK 101.2 billion year-on-year. Over this period, exports grew by 4.7%, while imports rose by 2.3%, indicating a steady expansion in the country’s overall trade activity.

The November performance underscores the importance of closely monitoring sector-specific trends and trade partnerships. While sectors like motor vehicles and electrical equipment continue to demonstrate resilience, challenges in metalworking and machinery trade highlight the need for strategic adjustments to maintain a balanced trade outlook.

Source: ČSÚ

Between Recession and Recovery: Logivest analyzes the German logistics real estate market in 2024

The German logistics real estate market in 2024 bore the marks of economic recession, yet also displayed signs of resilience and recovery. While the letting market experienced significant declines, and logistics providers reported increased vacancies due to reduced buffer warehousing, new construction developments surpassed 4 million square meters—a modest increase compared to 2023.

Logivest, a logistics property consultancy, observed a notable uptick in speculative construction in 2024, reflecting regained confidence among developers.

“New logistics developments will exceed 4 million square meters this year,” confirmed Kuno Neumeier, CEO of Logivest. “We are also seeing a normalization of rents, with falling construction costs bringing rates down to more manageable levels. In some areas, projects with rents below six euros per square meter have reappeared, which was unthinkable last year.”

One standout project is the Log Plaza in Frankfurt Oder, developed by Alcaro without any pre-letting agreements. This speculative development underscores renewed trust in market stability. Sustainability continues to play a central role in new construction projects, with developers prioritizing energy efficiency and eco-friendly designs.

Despite positive developments, challenges remain. Increased vacancies have been reported in existing properties, with logistics service providers struggling during a subdued peak season, from Black Friday through Christmas.

“Our logistics service provider exchange, Logivisor.com, indicates that the grey market currently includes at least 2 million square meters of vacant managed storage space,” Neumeier noted. “This reflects ongoing difficulties in matching demand with available space.”

The volatile automotive sector further complicates the logistics landscape. While the new Mercedes-Benz logistics center in Bischweier—a 100,000-square-meter project—stands out as the largest development of 2024, competition from Chinese electric vehicle manufacturers continues to rise. The decline in production by German automakers could have long-term implications for space requirements in the supplier industry.

Despite current obstacles, Neumeier remains cautiously optimistic about the future: “The logistics real estate market is likely to continue stabilizing in 2025. New demand drivers, such as the expanding defense sector, are expected to play a significant role in boosting the market.”

Logivest plans to release detailed data and analysis of 2024 developments, along with a forward-looking perspective for 2025, in the upcoming Logivest Logistikimmobilien Seismographen 2024/2025, set for publication in mid-January.

The German logistics real estate market is navigating a challenging landscape marked by recessionary pressures and transformative industry shifts. However, signs of recovery and strategic adaptation—through speculative development, sustainability-focused projects, and emerging demand sectors—offer hope for a more stable and dynamic market in the coming year.

InPost achieves record growth with over 1 billion parcels delivered in 2024

InPost Group, a leading e-commerce logistics provider, has announced a landmark year in 2024, achieving record-breaking growth across its operations. The company delivered an impressive 1.09 billion parcels, marking a 22% year-on-year increase, and expanded its network with the installation of 11,500 new automated parcel machines (APMs). By the end of the year, InPost operated 46,977 APMs, a significant 33% growth compared to the previous year.

InPost’s President, Rafał Brzoska, highlighted the company’s achievements, stating, “2024 was a record year for InPost in every way. For the first time, we delivered over 1 billion parcels, installed more than 11,500 new APMs, and handled nearly 14 million parcels on a single day during the pre-Christmas period. In Poland, we expanded our network to over 25,000 machines, ensuring that nearly 90% of city residents have an APM within a seven-minute walk.”

The company’s growth was driven by strong performances across its key markets. In Poland, InPost delivered 709.3 million parcels, a 20% increase year-on-year, fueled by demand from small and medium-sized merchants, the fashion sector, and domestic and international marketplaces. In the Mondial Relay markets, which include France, Spain, Portugal, and Italy, InPost delivered 266.6 million parcels, an 11% increase. The UK market saw the most dramatic growth, with parcel deliveries doubling to 93.2 million.

The fourth quarter of 2024 was particularly strong for InPost, with 322.1 million parcels delivered, a 20% year-on-year increase. The company achieved a record-breaking day during the holiday season, processing nearly 14 million parcels across Europe. In Poland, Q4 deliveries reached 209.9 million parcels, while Mondial Relay markets handled 77.7 million parcels, an increase driven largely by a 28% rise in B2C segment volumes. In the UK, InPost delivered 27.2 million parcels, a 58% year-on-year increase, achieving its best quarterly result to date.

InPost also made significant strides in expanding its network. By the end of 2024, the company operated over 82,000 out-of-home points, with APMs accounting for 57% of the total. In Poland, the number of APMs increased by 15% to more than 25,000 machines. Research conducted by Kantar revealed that 93% of Polish online shoppers consider InPost parcel lockers their preferred delivery option. In Mondial Relay markets, the out-of-home network grew by 18% to over 31,000 locations, including nearly 4,000 new APMs. In the UK, InPost strengthened its leading position by adding nearly 3,000 APMs, bringing the total to over 9,200 devices.

Looking ahead, InPost plans to continue its strategic growth by enhancing logistics operations, improving user experience, and expanding its presence in key markets. The company remains committed to maintaining its leadership position in Poland, France, and the UK, while doubling its footprint in markets like Spain, Portugal, and Italy.

Founded in 1999 by Rafał Brzoska, InPost has become a cornerstone of e-commerce logistics, providing parcel locker services, courier solutions, and fulfillment services. Its acquisition of French logistics firm Mondial Relay in July 2021 bolstered its position in the European market. InPost has been listed on Euronext Amsterdam since January 2021.

Source: InPost Group and ISBnews

OECD Economic Outlook, Volume 2024 Issue 2

The Organisation for Economic Co-operation and Development (OECD) has released its Economic Outlook for December 2024, presenting a cautiously optimistic view of the global economy. The report forecasts a modest increase in global GDP growth, projecting a rise from 3.2% in 2024 to 3.3% in both 2025 and 2026. This anticipated growth is attributed to declining inflation rates, which are expected to bolster real incomes and consumer spending.

In OECD member countries, GDP growth is projected to stabilize at 1.9% for both 2025 and 2026, reflecting a steady economic environment. Non-OECD economies, particularly in emerging Asian markets, are expected to maintain their current growth trajectories, continuing to be significant contributors to global economic expansion.

The report highlights a continued decline in headline inflation across most nations throughout 2024, driven by reductions in food, energy, and goods prices. This downward trend in inflation is anticipated to persist, further supporting real income growth and enhancing consumer purchasing power.

Despite these positive indicators, the OECD cautions that the economic outlook remains highly uncertain. Potential risks include escalating geopolitical tensions and the implementation of global trade restrictions, which could impede further disinflation and dampen economic growth prospects. Additionally, unforeseen shocks may lead to disruptive corrections in financial markets, exacerbated by high debt levels and stretched asset valuations.

To mitigate these risks and strengthen economic foundations, the OECD emphasizes the need for ambitious structural policy reforms. Key recommendations include enhancing education and skills development, reducing labor and product market constraints to encourage investment and labor mobility, and increasing public investment in areas with significant market failures. Such measures are deemed essential to improve productivity, facilitate the adoption of new technologies, and boost labor force participation, thereby promoting sustainable and inclusive growth in the medium term.

In summary, while the OECD’s latest Economic Outlook presents a slightly more optimistic forecast for the global economy, it underscores the fragility of this recovery and the critical importance of policy interventions to sustain and enhance economic growth.

Note: Table shows harmonised index of consumer prices for the euro area and its member states and the United Kingdom, and national consumer price index for all other countries.

Source: OECD Economic Outlook, December 2024

EBRD and EU back €200 million lending facility for Ukraine’s private sector via OTP Bank

The European Bank for Reconstruction and Development (EBRD) has unveiled a new €200 million risk-sharing facility for Ukraine’s JSC OTP Bank (OTPU). This initiative aims to bolster financing for Ukraine’s private sector amidst ongoing challenges brought by the war.

The EBRD’s unfunded portfolio risk-sharing mechanism will cover up to 50% of OTPU’s credit risk on the €200 million sub-loan portfolio. This enhancement will enable OTP Bank to extend financing to critical industries such as agriculture, energy, manufacturing, and transport, supporting businesses vital to Ukraine’s economy. The facility is backed by a first-loss risk cover funded by donors, including the European Union (EU), under the Ukraine Investment Framework (UIF).

This marks the fifth and largest facility of its kind provided by the EBRD to OTP Bank Ukraine, continuing their strong collaboration. Including this initiative, EBRD guarantees have unlocked nearly €2 billion in financing for Ukraine since the start of Russia’s invasion.

Up to 20% of the loans will focus on supporting long-term investments by micro, small, and medium-sized enterprises (MSMEs) in EU-compliant and green technologies. These projects aim to enhance the competitiveness of Ukrainian businesses both domestically and internationally. Eligible sub-borrowers will also benefit from EU-financed investment grants under the EU4Business initiative and technical assistance for their projects.

To date, the EBRD has allocated €66 million in EU grants to support MSMEs in Ukraine under the EBRD-EU4Business Credit Line, including €5 million in projects implemented through OTP Bank Ukraine.

The facility also introduces new provisions for businesses impacted by the war. Sub-borrowers affected by asset destruction, loss, or relocation, or those contributing to reintegrating veterans into the workforce, will qualify for additional investment incentives.

Source: EBRD

AFI Europe reflects on a successful 2024 and announces new projects in Prague

Developer group AFI Europe is reviewing its achievements in the Czech Republic over the past year, marking significant progress in the rental housing and office property sectors, while unveiling plans for 2025.

2024 Highlights

Among the key milestones of 2024 was the expansion of the AFI Home rental housing portfolio, now comprising 872 rented apartments with an impressive 95% occupancy rate. In March, AFI Europe launched its fourth rental property, AFI Home Kolbenova 2, which features 327 apartments and reached a 90% occupancy rate by December. The project also introduced additional amenities, including a supermarket, a laundry facility, and a coworking center designed to support remote-working tenants and foster a vibrant business community in the Vysočany district.

“A pivotal development for our rental housing portfolio in 2024 was the acquisition of two projects with 810 units from FINEP,” stated Doron Klein, Deputy CEO of AFI Europe Group and Managing Director for the Czech Republic and Romania. “AFI Home Nová Elektra is currently under construction, while work on AFI Home V Korytech is scheduled to begin mid-2025. Additionally, we are preparing the third phase of our AFI Home Kolbenova project with approximately 300 units and expect to secure building permits this year. Our goal for 2025 remains focused on growing our rental housing portfolio through further BTR (build-to-rent) project acquisitions,” Klein added.

Commercial Real Estate Achievements

AFI Europe also reported near-total occupancy across its six office projects in 2024, maintaining an impressive occupancy rate of nearly 100%. Notably, the AFI City 1 office building in Prague 9’s Vysočany district achieved full occupancy, welcoming new tenants from the automotive, logistics, and pharmaceutical sectors.

Future Residential Development

AFI Europe is also expanding its footprint in residential sales. As part of its AFI City project in Vysočany, the company is planning a residential building with approximately 300 apartments. “We aim to obtain building permits for this project by the end of 2025,” concluded Klein.

With a robust pipeline of projects and a strong performance in both residential and commercial real estate, AFI Europe is poised for continued growth and success in Prague and beyond.

Permira to acquire majority stake in Westbridge, advancing sustainability in real estate

Global investment firm Permira has announced an agreement to acquire a majority stake in Westbridge Advisory (“Westbridge”), a prominent European energy and sustainability advisory firm serving institutional real estate clients. The transaction marks a strategic exit for current investor GENUI, while Westbridge’s founders will significantly reinvest alongside Permira Funds. The deal is expected to close by the end of Q1 2025, subject to regulatory approvals.

Headquartered in Frankfurt with offices in London, Warsaw, and Zurich, Westbridge specializes in energy procurement and sustainability consulting, helping clients reduce their carbon footprint and achieve long-term sustainability objectives. Since its founding in 2015, Westbridge has become a trusted partner to over 600 institutional real estate clients, delivering double-digit revenue growth driven by the increasing demand for green energy solutions and ESG compliance in the property sector.

The investment by Permira Funds is poised to drive Westbridge’s next phase of growth, focusing on international expansion and scaling its services in a dynamically evolving market. Westbridge’s offerings include energy procurement advisory, green building certifications, ESG data management, and broader sustainability consulting.

“We are excited to begin this new chapter with Permira,” said Yama Mahasher, CEO of Westbridge. “Together, we aim to further internationalize our business and invest in future growth. We deeply appreciate GENUI’s support since 2021, which has been instrumental in scaling our impact. With Permira as our new partner, we are well-positioned to advance the energy transition in real estate.”

Florian Kreuzer, Head of DACH at Permira, highlighted the strategic alignment of the investment: “We are thrilled to partner with Westbridge’s founders and support their vision of creating a European leader in energy and sustainability advisory for real estate. This transaction reflects our commitment to investing in high-growth, climate-focused opportunities in the DACH region and beyond.”

David Brückmann, Managing Director in Permira’s Services Sector, added: “The sustainability trend in real estate offers immense growth potential for expert advisory firms like Westbridge. Leveraging Permira’s expertise in tech-enabled services and our international network, we look forward to helping Westbridge expand into new markets.”

GENUI, which supported Westbridge’s growth since 2021, exits the investment after overseeing a period of exceptional expansion. Under GENUI’s ownership, Westbridge achieved a sevenfold increase in sales and completed several strategic acquisitions.

“It has been a privilege to support Westbridge’s growth and environmental impact,” said Max Odefey of GENUI. “The company has evolved into a significant market leader, and we wish the team and Permira every success in continuing this growth journey.”

The acquisition underscores Westbridge’s pivotal role in reducing the real estate sector’s carbon footprint while aligning with Permira’s climate investment strategy. As the need for sustainability in real estate accelerates, Westbridge, backed by Permira, is well-equipped to drive innovation and lead the transition toward a more sustainable future.

Photo: Florian Kreuzer, Managing Director, Head of DACH, Permira and David Brueckmann, Managing Director, Permira

Sahar Zabler joins PropTech Powerhouse as Managing Director

PropTech Powerhouse e.V., a PropTech and real estate association, has announced a transformative leadership appointment: Sahar Zabler has been named its new managing director. With her extensive experience in the construction and real estate industry, alongside deep expertise in digitalization and sustainability, Zabler is set to lead the association into an innovative future.

Zabler brings over a decade of industry knowledge, blending a strong understanding of traditional real estate with the evolving demands of digital transformation. Previously, she served as Business Unit Manager of the Real Estate & Construction division at HAGER Executive Consulting, where she successfully bridged the gap between conventional practices and modern solutions.

“I’m thrilled to take on this role at PropTech Powerhouse e.V. and collaborate with a visionary, dedicated team to shape the future of the real estate industry,” Zabler stated. “Digitalization and sustainability have been central to my career, and I aim to drive these themes forward with the support of our members and partners, fostering innovative, actionable solutions.”

Zabler emphasized the association’s commitment to fostering collaboration and interdisciplinary knowledge exchange, which are critical for the industry’s success. Her focus will include expanding PropTech Powerhouse’s impact, particularly in sustainability and digital transformation, while spearheading initiatives like the Road to Green, a flagship event bringing together industry leaders to develop practical solutions for a greener real estate sector.

Under Zabler’s leadership, PropTech Powerhouse e.V. will prioritize cooperative efforts to advance sustainable and smart real estate practices. The Road to Green will serve as a key event in 2025, uniting stakeholders from across the construction and real estate sectors to tackle industry challenges and promote eco-friendly practices.

PropTech Powerhouse e.V. is dedicated to cross-sector networking, knowledge exchange, and fostering innovative solutions in the construction and real estate industry. Founding members include aedifion, Art-Invest Real Estate, Digital Hub Cologne, Drees & Sommer, University of Cologne, and Viessmann Deutschland, among others. The board comprises Philipp Kühn (Chair), Björn Schmidtmeyer (Deputy Chair), Felix Brinkmann (Treasurer), and Christine Damke (Advisory Board).

With Zabler at the helm, PropTech Powerhouse e.V. aims to drive the real estate industry towards a more sustainable and intelligent future. Members and partners are encouraged to join this transformative journey and contribute to shaping a greener, smarter world.

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