Deka Immobilien buys logistics property from Necron Group in the Netherlands

Deka Immobilien has purchased a logistics property near Amsterdam Airport in one of Europe’s most sought-after logistics markets. The new building was sold by Dutch Industrial Properties XII B.V., a subsidiary of Necron Group AG. It is earmarked for the portfolio of the Deka-Immobilien Metropolen open-ended property fund. The parties have agreed not to disclose the purchase price.

Green Square Logistics consists of two interconnected buildings with approximately 38,500 sqm of leasable space and 275 parking spaces. The property was completed in July 2024 and is fully leased on a long-term basis. Building A, consisting of nearly 25,000 sqm GLA, has been secured by Bausch + Lomb Netherlands B.V., a worldwide manufacturer of contact lenses and medical products. Building B is home to JAS Forwarding (Netherlands) B.V., one of the leading logistics and freight service providers in the Netherlands. Eneco Solar B.V. also has a lease agreement for a photovoltaic system on the roof.

The logistics property is located in Aalsmeer near Amsterdam’s Schiphol Airport and is part of the Green Square Business Campus, an industrial estate of around 250,000 sqm GLA that where Necron Group is developing a high-quality innovative business park for logistics, offices, production, hospitality and storage facilities.

The property is rated “Excellent” by BREEAM, the British certification for sustainable construction.

With the purchase of a second logistics property, Deka-ImmobilienMetropolen fund management is furthering its sectoral diversification. This marks the first time that the fund has acquired a property in the Netherlands.

Mercedes-Benz expands in Lower Silesia with new industrial park in Jawor

Mercedes-Benz is making another significant investment in Lower Silesia, Poland, with plans to build an industrial park near its new light commercial vehicle factory in Jawor. The company has acquired two plots of land, totaling over 46 hectares, from the Wałbrzych Special Economic Zone ‘INVEST-PARK,’ marking the automotive giant’s continued expansion in the region.

The newly purchased land includes an 11.3-hectare site in Jawor municipality and a 34.8-hectare plot in nearby Męcinka municipality. The acquisitions complement the construction of the new light commercial vehicle factory, announced on 4 December, and will expand the scope of Mercedes-Benz’s operations in the area.

The industrial park in Męcinka will serve as a hub for sequencing assembly materials and pre-assembly activities, carried out by the company’s suppliers. This infrastructure is designed to optimize production processes and enhance logistical efficiency for the factory, which is set to become a cornerstone of Mercedes-Benz’s European production network.

“The fourth industrial revolution is happening in Jawor,” said Michał Jaros, Deputy Minister for Development and Technology, during the groundbreaking ceremony for the van factory. “This state-of-the-art facility not only highlights the region’s potential but also creates opportunities for Polish companies to integrate into the supply chain. It is an investment that will benefit the region and the entire country.”

The industrial park represents Mercedes-Benz’s commitment to innovation and sustainability in manufacturing. With advanced production methods and automated processes, the new facility will contribute to the transformation of the region into a hub of modern industrial activity.

“Mercedes-Benz is not just an automotive icon but a symbol of innovation and technological progress,” said Wojciech Smoliński, President of the Wałbrzych Special Economic Zone ‘INVEST-PARK.’ “This investment strengthens Lower Silesia as a key partner for responsible and forward-thinking business.”

Krzysztof Hołub, Vice President of the Wałbrzych Special Economic Zone, emphasized the broader economic impact: “Large production plants like this often act as catalysts for local business development. This industrial park will not only support Mercedes-Benz’s operations but also provide opportunities for smaller companies to thrive.”

The new van factory in Jawor is part of Mercedes-Benz’s push towards electromobility. The site, which previously housed engine and battery production for hybrid cars, will be transformed to produce premium vans based on the VAN.EA electric architecture. From 2026, all newly developed medium and large vans from Mercedes-Benz will utilize this platform, furthering the company’s commitment to an electric future.

“Joining our global production network in Europe, this new facility underscores our transformation towards efficient, flexible, and electric mobility,” said Francesco Ciancia, Head of Mercedes-Benz Vans Operations.

With the latest acquisitions, Mercedes-Benz now controls over 147 hectares of land in the Jawor area, solidifying its long-term presence in Lower Silesia. The region’s strategic location, robust infrastructure, and supportive business environment have made it a focal point for the company’s European operations.

The new industrial park and factory are expected to create a ripple effect of economic benefits, from job creation to increased opportunities for local suppliers, establishing Jawor as a pivotal hub for Mercedes-Benz’s innovation-driven growth in Europe.

Redkom Development opens largest retail park in Bielsko-Biała, Comfy Park Bielik

Redkom Development has officially opened Comfy Park Bielik, the largest retail park in Bielsko-Biała, at 180 Warszawska Street. This new shopping destination revitalizes a location long familiar to residents, following the redevelopment of the former Tesco store and shopping center that operated in the area for years.

With over 19,000 sqm of retail space, Comfy Park Bielik houses nearly 30 stores and service outlets, including a 5,000 sqm Kaufland store, which marks the retailer’s 250th location in Poland. The retail park has brought a vibrant commercial hub to Bielsko-Biała’s northern neighborhoods, offering a mix of established retail chains, new market entrants, and local concepts.

Comfy Park Bielik’s tenant mix has been carefully curated in collaboration with Mallson, a leasing specialist for retail and service spaces. The park features a diverse range of retailers, anchored by Kaufland, complemented by brands like Woolworth, making its debut in Poland, and a Burger King Drive-Thru restaurant. The site also includes the second-largest store in Poland for Martes Sport and a Mountain Warehouse outlet, appealing to outdoor and sports enthusiasts.

The variety extends to local businesses and unique service concepts, with stores like Rossmann, Świat Książki, and Maxi Zoo. Units under construction include KiK, Flugger, and Piekarnia Piskorek, among others, ensuring an evolving and dynamic retail offering.

The opening of Comfy Park Bielik has established the largest commercial zone in Bielsko-Biała. Together with nearby businesses like Castorama, Moya petrol station, and Mercury Market, the retail park creates a one-stop destination for convenient shopping and leisure.

“Comfy Park Bielik represents a major milestone in the revitalization of a well-known location in Bielsko-Biała. The project not only meets the needs of residents but also attracts new brands to the Polish market, enhancing the shopping experience for the community,” said a representative of Redkom Development.

Designed by ALFA Design and Investment Services Studio, the architectural transformation of Comfy Park Bielik has earned prestigious recognition. It won the “Best Commercial Renovation/Redevelopment for Poland” category at the 2024 European Property Awards and received a nomination for “Best Commercial Renovation/Redevelopment Europe.”

Tenant coordination was handled by ProjCare Poland Sp. z o.o., ensuring seamless collaboration between design teams and tenant representatives. Daldehog INTL Ltd. served as the general contractor, overseeing the facility’s construction.

Comfy Park Bielik is now owned by Newgate Investment, which adds the retail park to its growing portfolio of properties, including Ozimska Park in Opole, another Redkom Development project.

By revitalizing a previously dormant site, Comfy Park Bielik sets a benchmark for modern, community-focused retail developments. With ongoing expansions and new stores opening in the coming months, it promises to remain a vibrant part of Bielsko-Biała’s commercial landscape for years to come.

Open Now: Kaufland, Rossmann, Kwiaciarnia La Flor, Caseownia, Świat Książki, Woolworth, Sinsay, Tedi, Jysk, Xtreme Fitness Gyms, Martes Sport, Mountain Warehouse, Media Expert, Wakacje.pl, Maxi Zoo, Dr Materac, Burger King.

Coming Soon: KiK, Flugger, Świat Zabawek, Piekarnia Piskorek, Manso e-cigarettes, Lody Valenciana, Diagnostyka, Żabka, Kodano Optyk.

This redevelopment reinforces Bielsko-Biała’s position as a thriving retail destination, blending modernity with accessibility for residents and visitors alike.

Revetas Group disposes of Metropolis Development project to Koruna Group

Revetas Group has announced the successful sale of the Metropolis development project to Koruna Group, a prominent Slovak development company. The property includes 476,000 sqm of strategically located development land near Bratislava. While the transaction details remain confidential, the disposal marks a significant milestone for both parties.

Jan Bukovský, Revetas’ Head of Operations, stated: “Metropolis features prime plots situated along the key highway connecting Bratislava with Vienna and Budapest. Since acquiring the site in 2018 as part of the Keystone portfolio, Revetas has undertaken substantial pre-development work to enhance its value. With these preparations complete, we are pleased to entrust the project to Koruna Group, a seasoned local developer with over 25 years of expertise in similar projects. We commend the professionalism of Koruna Group’s team, led by their founder and CEO, Mr. Gustáv Laca, and are confident the project is in capable hands.”

Liviu Becheanu, Principal at Revetas Capital and project manager for Metropolis, added: “The site is located approximately 12 km south of Bratislava in the Jarovce district, near the D2 highway and close to the Slovak-Austrian and Slovak-Hungarian borders. Spanning 475,773 sqm across two land plots, it is designated for a variety of uses under the City Master Plan. These include civic facilities of regional significance, mixed-use developments, residential areas, recreational spaces, sports facilities, parks, and green zones.”

This transaction underscores the strategic importance of the Metropolis project, which is poised to contribute significantly to regional development. The collaboration between Revetas and Koruna Group highlights the potential of the site to deliver sustainable and diverse urban spaces, aligned with the evolving needs of the Bratislava metropolitan area.

Industry Insights: HIH Invest and BF.direkt react to ECB’s latest interest rate cut

The European Central Bank (ECB) concluded its final meeting of 2024 with a widely anticipated move: a 25 basis point reduction in the key interest rate. Industry leaders from HIH Invest and BF.direkt shared their perspectives on the implications of the decision for capital and property markets.

Prof. Dr. Felix Schindler, Head of Research & Strategy at HIH Invest, noted that the rate cut came as no surprise.

“No surprises at the end of the year! The ECB cut the key interest rate by a further 25 basis points at its last meeting of 2024. This step was expected on the capital and property markets and has therefore already been priced in.”

Dr. Schindler emphasized that the focus will now shift to how interest rates evolve in 2025. He predicts additional rate cuts by the ECB, with longer-term capital market rates already reflecting this expectation.

“The size and number of interest rate hikes – especially in the second half of 2025 – are likely to depend on the new US administration. To what extent will the measures announced during the election campaign be implemented, and how will they affect Europe?” he questioned.

For real estate markets, particularly in sectors with resilient demand for space, such developments could have positive effects on both investment and financing.

In contrast, Francesco Fedele, CEO of BF.direkt AG, expressed skepticism about the ECB’s decision, advocating for a stronger stance against inflation.

“In my opinion, the ECB should have left the key rates untouched and instead should have fought inflation more consistently. The core inflation rate in the eurozone was recently well above the two-percent target, and for services, it was even around four percent.”

Fedele also raised concerns about the potential impact of geopolitical developments, particularly the possibility of punitive tariffs under the new US administration led by Donald Trump.

“If punitive tariffs are introduced, this could further increase inflation. High inflation rates are particularly damaging for the real estate industry. If the market expects more inflation, this can result in an increase in long-term interest rates. And these are much more crucial for the property market than key interest rates,” he added.

As the ECB’s rate decisions ripple through the capital and property markets, the outlook for 2025 hinges on a range of factors, including inflation dynamics and geopolitical shifts. For now, the industry remains divided on the central bank’s strategy, with potential implications for investment and financing strategies across Europe’s real estate sector.

IMMOFINANZ completes S IMMO squeeze-out, takes full ownership

IMMOFINANZ AG has successfully completed the squeeze-out of minority shareholders in its subsidiary S IMMO AG, solidifying 100% ownership. The move became legally effective with its registration in the commercial register on December 3, and trading of S IMMO shares on the stock exchange has been terminated.

Minority shareholders received a cash compensation of €22.05 per share, which was automatically credited to their accounts by their custodian banks on December 11, including accrued interest.

“With the completion of the squeeze-out, we now hold 100% of the shares in S IMMO. This is a key step in optimizing our Group structure, reducing costs, and strengthening our strategic focus,” said Pavel Měchura, member of the Executive Board at IMMOFINANZ. “It also enhances our flexibility for future investments.”

IMMOFINANZ continues to position itself as a growth-oriented property owner with a high-quality real estate portfolio specializing in office and retail properties across its core European markets. The Group prioritizes innovative and flexible real estate solutions designed with strong customer orientation while continuously optimizing its portfolio.

Strategic sales of selected properties remain a central part of the Group’s active portfolio management approach, laying the groundwork for sustained growth and value creation.

The company adheres to a robust financial policy that ensures sufficient liquidity, balanced capital structures, and optimized financing costs. This disciplined approach underpins IMMOFINANZ’s long-term stability and ability to pursue growth opportunities.

Aligned with its Group-wide ESG strategy adopted in 2023, IMMOFINANZ is committed to integrating ecological sustainability, social responsibility, and corporate governance into its operations. Clear targets and milestones guide the Group’s efforts to achieve meaningful progress in these areas.

The completion of the S IMMO squeeze-out represents another significant milestone in IMMOFINANZ’s strategy to streamline operations, reduce costs, and strengthen its market position as a leader in European real estate.

MLP Group launches new business park in Castrop-Rauxel

MLP Group is set to strengthen its foothold in the strategic German market with the launch of its third business park in the Ruhr Area. Located in Castrop-Rauxel, the new development will transform a 14.6-hectare post-industrial site into a cutting-edge business center offering 57,000 square meters of sustainable, flexible space.

The project marks MLP Group’s sixth investment in Germany and builds on its success in the Ruhr Area, where it operates parks in Unna and Gelsenkirchen. The new Castrop-Rauxel facility is modeled after the innovative MLP Business Park Schalke concept in Gelsenkirchen.

“Germany is our strategic direction for expansion. It’s the largest market in Europe with immense growth potential. Recently, we successfully launched our first green bond offering, raising €300 million, a significant portion of which will support further development in this country,” said Radosław T. Krochta, CEO of MLP Group S.A.

The Castrop-Rauxel business park will include 55,000 square meters of warehouse space and 2,000 square meters of office space. The development is designed to meet the highest environmental standards, aiming for at least DGNB Gold certification. Sustainable features include photovoltaic systems, green roof elements, heat pumps for heating, and advanced water and energy management systems.

“This project perfectly aligns with our strategy for the German market. Located in the heart of the Ruhr Area, it offers excellent logistics infrastructure and proximity to key transport routes. The park is designed to accommodate a variety of business activities, including data centers,” explained Martin Birkert, Chief Country Officer Germany at MLP Group.

The business park will offer modular units ranging from 1,000 to 10,000 square meters, catering to light industry, warehousing, logistics, and other business needs. The flexibility of the design ensures adaptability for tenants, including those requiring specialized spaces such as data centers.

The project has garnered strong support from local authorities. Jens Langensiepen, Managing Director at Wirtschaft & Marketing Castrop-Rauxel GmbH, praised the revitalization of the brownfield site, noting its importance for commercial development in the area.

“Like many Ruhr Area cities, Castrop-Rauxel was once shaped by the coal and steel industries. Today, free commercial space is scarce, and this project unlocks much-needed potential for new business settlements. We look forward to collaborating with MLP Group to bring this site to fruition,” Langensiepen stated.

Strategically located on Wartburgstraße 81, the site offers tenants unparalleled connectivity. It is within 3 km of major highways (A2, A42, A43, and A45) and just 800 meters from a four-lane federal road providing direct access to the city center. Nearby logistics hubs, including facilities operated by Dachser, UPS, and IKEA, further enhance its appeal. Dortmund Airport is just 34 km away, offering convenient access for domestic and international logistics.

The transaction was arranged by NAI Apollo, with legal support from Goodwin Law and tax consulting from Berkers & Cie. MLP Group will retain and manage the completed business park as part of its build-and-hold strategy, ensuring long-term value and tenant support.

This latest investment underscores MLP Group’s commitment to delivering high-quality, sustainable logistics and industrial real estate solutions in prime European locations. With the Castrop-Rauxel project, MLP Group continues to drive innovation and growth in Germany’s dynamic Ruhr Area.

European PBSA market poised for growth: Prague faces a critical supply shortfall

The 2024 European Purpose-Built Student Accommodation (PBSA) Investment Barometer, conducted by The Class Foundation and Savills, reveals significant growth prospects for the sector. Surveying investors and operators managing over 132,000 beds across Europe with an asset value of approximately €25.3 billion, the report highlights plans to increase bed numbers by 70% within the next 2-5 years. This expansion would add over 220,000 beds, backed by €22 billion in additional capital investment.

Despite high demand for student accommodation in Prague, the city struggles with a critical undersupply of PBSA stock. According to Fraser Watson, Head of Investment at Savills Czech Republic & Slovakia, Prague’s existing PBSA capacity stands at just 28,550 beds—insufficient to meet the needs of the growing student population.

“Investing in PBSA in Prague is a compelling opportunity,” Watson noted. “The city benefits from stable demand, a pronounced shortage of accommodation, and the economic reality that most students cannot afford private apartments outside of the student housing sector.”

Prague’s PBSA market is predominantly controlled by universities, which own 90% of the total capacity. However, the standard of living in university dormitories often falls short when compared to private PBSA offerings. Currently, Prague hosts 22 private student residences with a combined capacity of nearly 3,000 beds. Including co-living schemes popular among students, this figure rises to 3,800 beds. Significant private operators include The FIZZ, Comenius, DC Residence, and Zeitraum U Průhonu.

Prague’s universities attract a large student population, creating significant accommodation challenges:
• Czech Nationals: Of the 117,600 Czech university students in Prague, 71,200 commute from outside the city, while the remaining 46,400 are likely to seek local accommodation.
• International Students: An additional 27,660 international students are enrolled in Prague’s universities annually.

Together, these groups represent nearly 75,000 students vying for accommodation each year, far exceeding the city’s PBSA capacity. This shortfall spills over into the private rental sector, driving up demand and costs.

As the PBSA market evolves, investors face a dynamic mix of opportunities and challenges. According to Richard Valentine-Selsey, Head of European Living Research & Consultancy at Savills, the sector’s success will hinge on navigating economic conditions, adapting to shifting student demographics, and prioritizing environmental sustainability.

“Decisions made now regarding new developments, financing, and adherence to ESG principles will have lasting impacts across the sector,” Valentine-Selsey emphasized.

With demand for student accommodation in Prague vastly outstripping supply, the city presents a prime opportunity for PBSA investment and development. As investors deploy capital to address the shortage, integrating sustainable practices and innovative solutions will be key to shaping the future of student living in Prague and across Europe.

Poland’s data centre industry braces for key challenges in 2025

Poland’s rapidly growing data centre industry faces a transformative year ahead, driven by surging energy demands, advancements in artificial intelligence (AI), and a heightened focus on sustainability. According to experts from Data4, a leading operator in the sector, 2025 will bring both opportunities and challenges as the industry adapts to evolving technological and environmental demands.

The rise of generative AI tools is pushing the limits of computing power, leading to unprecedented energy demands. Data4 predicts the Polish data centre market, valued at PLN 6 billion by 2028, will need to balance technological advancements with sustainable operations.

“As AI applications grow, so does energy consumption, with some innovations using up to ten times the power of traditional services like search engines,” said Adam Ponichtera, Director of Data4’s Polish operations. “The challenge is to support this growth while reducing environmental impact and collaborating with local communities.”

Emerging Trends in Poland’s Data Centre Landscape

Data4 experts have identified several key trends that will shape the industry in 2025:
1. Large-Scale Campuses: Developers are expected to build mega campuses, often near renewable energy sources, to process vast data volumes for AI and real-time analytics. These facilities, boasting capacities of up to 1 GW, are designed to meet growing demand while minimizing carbon footprints.
2. Advanced Cooling Systems: Cooling remains critical, with direct liquid cooling (DLC) technology gaining traction as a solution for energy efficiency and thermal management.
3. Energy Autonomy: Operators are exploring self-sufficient energy strategies, including small modular nuclear reactors (SMRs) and high-capacity batteries, to enhance energy resilience and sustainability.
4. Heat Reuse Innovations: Waste heat recovery is evolving, with projects like Data4’s bio-circular data centre in Marcoussis, France, which repurposes heat to grow algae for industrial products.
5. Digital Twins: Virtual simulations are optimizing energy use in data centres, enhancing the performance of cooling and power systems while reducing consumption.
6. Sustainable Construction: Lifecycle analysis and low-carbon materials, such as BREEAM-certified concrete, are becoming standard practices in new data centre developments.

As data centres become more prominent in Poland’s urban landscapes, operators are emphasizing transparency and local engagement. Warsaw, a strategic hub for connections between Western Europe, Eastern Europe, and Scandinavia, hosts nearly 60% of Poland’s data centre business.

“Data centres are essential for a digital economy, yet their operations remain unfamiliar to many citizens,” Ponichtera noted. “This is an opportunity to foster partnerships, create jobs, and promote public understanding of their role.”

Poland’s data centre expansion depends on a skilled workforce. Attracting and retaining talent from diverse sectors remains a priority for operators in 2025. As the industry matures, companies must invest in training and development to ensure sustainable growth.

Poland’s data centre industry is poised for significant evolution in 2025, balancing rapid technological growth with sustainability and community engagement. By embracing innovative practices and fostering collaboration, the sector is set to meet the demands of a digital-first economy while minimizing its environmental impact.

New office construction in Prague faces challenges; upgrades to older buildings may offer relief

Prague’s office market is navigating a period of sluggish construction and rising rents, while developers and landlords focus on upgrading older properties to meet tenant demands. According to a recent survey by Colliers, only one new office building was completed in the city during the third quarter of 2024, contributing to a slight year-on-year vacancy increase to 8.1%. Prime rents in the city center have risen to approximately EUR 29.00 per square meter per month.

The only new office space delivered in Q3 2024 was the refurbished Riveroff Office House, located near the PORT7 project in Prague 7. While its completion marked the culmination of a protracted development process due to ownership changes, its impact on the vacancy rate was negligible, as the building will primarily serve its current owners.

In total, 69,500 m² of new office space across seven projects has been completed in Prague this year. However, the outlook for 2025 is muted, with only 23,400 m² expected to be delivered—one of the weakest performances in the market’s history.

“Despite these challenges, the market shows growth potential, with several projects in the pipeline across established office locations,” said Josef Stanko, Director of Market Research at Colliers. “However, issues such as financing, permitting, and pre-leasing remain significant obstacles for developers.”

The Prague office market now encompasses approximately 3.95 million m², reflecting only a 1% year-on-year growth. Vacancy rates rose by 74 basis points over the past year but are expected to decline as new supply remains limited and market activity increases.

Colliers notes a focus on upgrading older properties, either through ongoing refurbishments or by temporarily withdrawing them from the market for extensive renovations. This trend aims to meet modern tenant requirements, including sustainability and ESG standards.

“The recent rise in vacancy is temporary,” explained Stanko. “Specific factors, such as the reorganization of a large tenant, impacted the rate during Q3. With current leasing activity and limited new supply, we anticipate vacancy to decrease in the near term.”

Tenant activity remains robust, with gross leasing uptake reaching 132,600 m² in Q3 2024. However, 64% of this involved renegotiations and subleases, leaving net demand at 48,200 m².

“While demand exists, the market struggles to meet the needs of large tenants seeking specific combinations of location and timing,” noted Stanko. “As a result, many companies are delaying relocations and remaining in their current premises.”

Rental prices continue to climb, particularly for new office projects incorporating advanced technologies and ESG-friendly features. Prime rents in the city center are now EUR 29.00 per m² per month, while sought-after areas like Karlín, Brumlovka, and Smíchov average EUR 19.50. Outlying districts, such as Nové Butovice and Chodov, remain more affordable at EUR 16.50.

“New office prices are rising the fastest, driven by the cost of technological innovations and growing ESG demand,” concluded Stanko. “Despite higher prices, demand for such spaces is increasing.”

Prague’s office market faces short-term challenges, but ongoing upgrades and a cautious approach to new developments may stabilize vacancy rates and rental growth. As tenants seek modern, sustainable spaces, developers will need to balance innovation with affordability to meet evolving market demands.

« Previous 1 … 446 447 448 449 450 … 495 Next »

Latest news

All posts by fletcher@cijeurope.com.