Heitman expands European self-storage portfolio with Swedish acquisition

Heitman LLC, a global real estate investment management firm, has strengthened its presence in the European self-storage market by acquiring a majority stake in Servistore, Sweden’s third-largest self-storage operator. The deal, completed in February 2025, is part of Heitman’s broader strategy to expand its portfolio in the sector.

Servistore currently operates 31 self-storage facilities across 14 cities in Sweden, with 25 locations already open and six more set to launch soon. The company’s network includes more than 4,000 storage units, covering approximately 330,000 square feet.

This latest acquisition aligns with Heitman’s continued investment in self-storage, a sector that has seen growing demand across Europe. The firm has previously expanded in Ireland (2022), Germany (2021), and the United Kingdom (2020). Heitman has been active in self-storage investments since 1996 and currently manages more than 600 self-storage assets globally, with a combined value of approximately $7.8 billion.

A key aspect of Servistore’s operations is its technology-driven model, with facilities running on an unmanned basis. Heitman plans to scale this approach in Sweden by integrating advanced revenue management software and expanding ancillary services such as storage insurance offerings.

Tony Smedley, Managing Director and Head of European Private Equity at Heitman, highlighted the firm’s extensive experience in self-storage, which has allowed it to secure off-market acquisitions in Europe. Caleb Mercer, Managing Director of European real estate investments at Heitman, pointed to Sweden’s strong market fundamentals—driven by population growth, urbanization, and increased household mobility—as key factors in the decision to invest.

This acquisition reinforces Heitman’s commitment to expanding its footprint in the European self-storage sector, positioning Servistore for further growth under its new ownership.

Photo: Tony Smedley, Managing Director and Head of European Private Equity at Heitman

German companies continue to cut jobs as employment barometer declines

fletcher@cijeurope.com
27 February 2025
Jobs

German businesses are continuing to reduce their workforce, with the ifo Institute’s employment barometer dropping slightly to 93 points in February from 93.4 points in January. Despite a modest upward trend in the German Institute for Economic Research’s (DIW Berlin) economic barometer, which rose to 90.4 points, the labour market remains under pressure.

Job Cuts in Key Sectors

The industrial sector faces particularly severe job reductions, even as its employment barometer showed a slight increase in February. Service providers are also scaling back their workforce planning, with IT service companies making significant reductions. Meanwhile, the retail sector continues to struggle, according to the ifo Institute.

The Institute for Employment Research (IAB) also highlighted concerns over the weakening labour market. Its labour market barometer declined for the sixth consecutive month in February, dropping by 0.4 points to 98.3 points.

Unemployment Expected to Rise

Despite a slight increase in the European Labour Market Barometer to 99.5 points in February—the first rise in five months—experts remain cautious. Enzo Weber, an analyst at IAB, warned that unemployment is likely to increase while overall employment levels stagnate.

“The outlook is clearly negative,” Weber stated, pointing to the fact that the employment component of the IAB index has fallen below the neutral 100-point mark for the first time outside of the COVID-19 pandemic. In February, it dropped by 0.4 points to 99.9.

While DIW Berlin suggests that domestic demand may provide a modest boost to the economy, declining exports during the winter months are seen as a worrying sign. However, the institute notes that some degree of stabilisation may be emerging in the labour market.

Štiřín Castle fails to sell for the fifth time

The Štiřín Castle in Central Bohemia has once again failed to attract a buyer, marking the fifth unsuccessful attempt to sell the historic estate. No bidders registered for the latest electronic auction, which had a starting price of 1.156 billion crowns, according to information published on the auction website.

The Office for the Representation of the State in Property Affairs (ÚZSVM) confirmed the lack of interest and announced that it will now assess the next steps regarding the management of the property. The state office initially put the castle up for sale last September with an asking price of 3.3 billion crowns. Since then, it has gradually lowered the price and removed some parcels from the castle park from the offering.

Despite the price reductions, the property has not found a buyer. At a parliamentary control committee meeting in early February, ÚZSVM director Kateřina Arajmu reiterated that the office would not sell the property below its appraised value. On the same occasion, the committee recommended that the office begin discussions with the municipality of Kamenice, which has expressed interest in acquiring certain plots from the estate. The municipality hopes to obtain land along a road managed by the Central Bohemian Region to build a sidewalk, as well as the former hostel building and an old civil protection shelter to establish an additional kindergarten.

Located about 25 kilometers from Prague, Štiřín Castle previously functioned as a hotel with a restaurant, wellness center, and golf course. The Ministry of Foreign Affairs originally managed the property but transferred it to the state property office in June last year, having deemed it no longer necessary for its operations. At the time of the transfer, the site was already closed. This year, the property office confirmed that no other state institution had expressed interest in acquiring the castle, prompting the decision to offer it for private sale.

Štiřín Castle was constructed in the mid-18th century and underwent significant renovations around 1900, based on the designs of architect Jiří Stibral. The estate became state property after World War II when it was confiscated. Previously, it had been owned by the Ringhoffer family for decades. After the war, the castle was briefly used by scouts before undergoing a major restoration between 1985 and 1993 to be repurposed as a hotel.

The unsuccessful sale of Štiřín Castle is not an isolated case. Other state-owned properties have also struggled to find buyers. This year, auctions for the Veleslavín Chateau and the Broadway Palace in Prague ended without success. However, in mid-January, the auction of the Hanácká Barracks in Olomouc concluded successfully. After ten attempts, the property was sold to the Brno-based company Salibary for 91 million crowns.

Source: CTK
Photo: Štiřín Castle

Tesco opens modernized store in Čerčany with sustainable solutions

Tesco has unveiled its newly modernized store in Čerčany, marking the first major refurbishment of the year as part of its ongoing efforts to enhance its retail network. The renovation introduces a refreshed shopping environment, sustainable technologies, and improvements for both customers and employees.

The Čerčany store has undergone a complete transformation, including updated furniture, shelving, and signage, along with a new façade and logo. A key focus of the refurbishment was the fresh food section, where fruit, vegetables, and baked goods have been reorganized for greater convenience. The store has also implemented environmentally friendly refrigeration systems using CO₂ gas and installed doors on refrigerators to significantly reduce energy consumption.

As part of the modernization, the checkout area now features the Scan&Shop system, which allows for faster and more convenient transactions. Employee facilities have also been upgraded to create a more comfortable working environment. The store currently employs 23 staff members, supported by 17 temporary workers.

At the reopening ceremony, Tesco ČR CEO Katarína Navrátilová emphasized the company’s commitment to community engagement. To mark the occasion, Tesco donated CZK 50,000 to the DRáČe – Dětská radost Čerčany organization, which supports children and young people. Additionally, surplus food from the store will be regularly donated to the Food Bank Central to assist those in need.

Local officials and company representatives attended the reopening, including Čerčany Mayor Michal Tupý, DRáČe director Jana Reichelová, and Tesco executives Navrátilová, Patrik Dojčinovič (Chief Operating Officer), and Artur Beňa (Store Manager).

To celebrate the reopening, Tesco is offering a 10% discount on all purchases for Clubcard holders from February 26 to March 4. In the following weeks, the store will introduce additional promotions on selected product categories.

With its modernized layout and energy-efficient solutions, the Čerčany store aims to enhance the shopping experience while promoting sustainability and community engagement.

Rising costs and competition challenge confectionery businesses in Poland

As Fat Thursday sees an annual surge in the consumption of doughnuts, Polish confectioners continue to face financial difficulties amid rising costs and increasing competition. The cost of essential ingredients such as butter, flour, and sugar has risen steadily, while consumer preferences shift toward healthier alternatives. Data from the Register of Debtors BIG InfoMonitor and the BIK database indicate a growing burden of overdue debt for confectionery businesses, highlighting the challenges faced by the industry.

Rising Ingredient Costs and VAT Increase Impact Prices

The traditional recipe for doughnuts has remained largely unchanged since the 18th century, but production costs have increased significantly. Inflation at the end of 2024 stood at 4.7%, but certain food products experienced sharper price hikes. Butter, for example, saw a 27.1% increase in Poland, exceeding the EU average of 21.3%, as reported by Eurostat.

The rising costs of butter, eggs, and other key ingredients were compounded by a VAT increase on food from 0% to 5%, leading to higher prices for consumers. Despite this, the increased cost of doughnuts did not reduce the financial difficulties faced by confectionery businesses. Overdue debts in the sector grew by 23% in 2024, reaching over PLN 21 million.

Competition from Large Retailers and Consumer Shifts

Beyond rising costs, confectionery businesses face growing competition from large retail chains and discount stores. Doughnuts and other baked goods are widely available at supermarkets, often at significantly lower prices. A doughnut in a large store costs around PLN 3, while artisan confectioneries charge over PLN 20 for handcrafted alternatives. This pricing disparity has influenced consumer behavior, with many choosing cheaper alternatives or limiting their purchases, even on Fat Thursday.

Debt Trends in the Confectionery Industry

Unlike retailers, doughnut producers (PKD 1071Z – bread and confectionery production) have seen a decline in outstanding debt, which fell by 12% year-on-year. However, the total unpaid debt in this sector remains high at PLN 200 million, ten times more than that of confectionery retailers.

Producers of raw materials for confectionery, such as butter, flour, and fruit fillings, have seen improvements in their financial standing. The overdue non-credit debt of dairy product manufacturers (PKD 105) declined by 57%, while flour producers (PKD 1061Z) reduced their liabilities by 62.7%. The most significant improvement was recorded in the oil and fat production sector (PKD 104), where outstanding debt decreased by 72% year-on-year, falling from PLN 100 million to under PLN 30 million.

Future Outlook for the Industry

According to Waldemar Rogowski, chief analyst at BIG InfoMonitor, several factors contribute to the varying financial conditions within the sector. Producers who own their sales networks and supply frozen bakery products to supermarkets have more financial stability than smaller artisan bakeries. Additionally, industrial-scale confectioneries benefit from automation, which reduces labor costs, while craft bakeries rely on more expensive raw materials and manual labor.

Despite some improvements in raw material production, the long-term outlook for traditional confectionery businesses remains uncertain. The shift in consumer preferences toward health-conscious choices and continued financial pressures may reshape the industry in the coming years.

Source: InfoMonitor

CDU/CSU leads coalition talks as Germany navigates post-election landscape

In the recent German federal elections held on February 23, 2025, the conservative Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), led by Friedrich Merz, secured the largest share of the vote with 28.5%, translating to 208 seats in the Bundestag.

The far-right Alternative for Germany (AfD) experienced a significant surge, obtaining 20.8% of the vote and 152 seats, marking their strongest post-war performance.

The Social Democratic Party (SPD), previously the ruling party under Chancellor Olaf Scholz, saw a substantial decline, receiving 16.4% of the vote and securing 120 seats, their worst result since 1887.

Friedrich Merz has expressed intentions to form a coalition government, likely seeking partnership with the SPD, despite their electoral losses. Merz emphasized the need for swift coalition negotiations focusing on foreign policy, migration, and economic issues.

The AfD’s significant gains, particularly in Eastern Germany, have raised concerns among mainstream parties. Merz has reiterated his refusal to collaborate with the AfD, maintaining a political cordon sanitaire around the far-right party.

This election underscores a shifting political landscape in Germany, with traditional centrist parties facing challenges from both the right and left, necessitating careful coalition-building to ensure stable governance.

Source: comp.

Florian Goldgruber appointed Managing Director of Periskop Opportunities GmbH

fletcher@cijeurope.com
27 February 2025
Jobs

Periskop Partners, a brand of DLE Group AG, has appointed Florian Goldgruber as Managing Director of the newly established Periskop Opportunities GmbH. He will lead the subsidiary alongside Managing Partner Dominik Brambring, contributing to the development of the Opportunities Fund and supporting the firm’s strategic expansion.

Goldgruber will collaborate with Periskop Partners’ specialized investment teams, covering Senior Living, Logistics, Land Development, and Mezzanine Capital. His role will involve transaction management, operational implementation, and long-term investment project optimization.

Before joining Periskop, Goldgruber served as CFO at ambelin GmbH, a startup specializing in asset and property management, overseeing a portfolio of approximately 6,000 residential and commercial units for Blackstone Group funds. He played a key role in the company’s financial structuring, digitalization, and growth.

Goldgruber has extensive experience in private equity, real estate, and capital markets, with expertise in business development, transactions, and investor relations. His previous positions include serving as CFO at ADO Properties S.A., where he helped expand the company’s portfolio to €4.4 billion, and leadership roles at Arbireo Capital AG, Vonovia SE, and Terra Firma Capital Partners. He is a certified banker with a degree in business administration.

Goldgruber highlighted the investment focus of Periskop Opportunities as a key factor in his decision to join, emphasizing the firm’s platform as a strong foundation for targeted growth in real estate and operational private equity investments.

Brambring welcomed Goldgruber’s appointment, citing his experience in fund structuring and operational real estate development as valuable assets for leading the new subsidiary.

Periskop Opportunities GmbH focuses on investments in metropolitan areas and high-growth regions in Germany, particularly in residential, logistics, medical offices, and data centers. The company aims to deliver risk-adjusted returns through a strategic and tactical investment approach in an evolving market environment.

Global real estate investment rebounds in 2024, signaling market recovery

In 2024, global real estate investment experienced a notable resurgence, reversing a two-year downward trend. Investment volumes increased by 14% year-over-year, totaling approximately US$703 billion.

This growth was particularly evident in the fourth quarter, where investment activity surged by 37% compared to the same period in the previous year. The Americas led this upward trajectory with a 45% year-over-year increase in Q4, culminating in an annual total of US$372 billion, marking a 10% rise from 2023. The Europe, Middle East, and Africa (EMEA) region also demonstrated robust performance, with full-year volumes reaching US$199 billion, a 17% increase, and a remarkable 40% surge in Q4 alone. The Asia Pacific region followed suit, recording a 10% uptick in Q4, bringing its annual total to US$131 billion, up 23% year-over-year.

Several factors contributed to this positive momentum. Central banks initiated rate cuts in 2024, enhancing financing conditions and bolstering investor confidence. This monetary easing, coupled with diminished inflation risks, is anticipated to continue through 2025 and into 2026, further supporting investment activities.

Despite these gains, the market faced challenges. Global cross-regional capital flows among North America, Europe, and Asia-Pacific totaled US$26.7 billion in the first half of 2024, representing a 10% decline year-over-year. Additionally, private real estate fundraising experienced a slowdown, with approximately US$98 billion raised in 2024, a significant decrease from recent levels.

Looking ahead, the global real estate market is poised for a gradual recovery in 2025. The improved financing environment, combined with sustained investor interest, is expected to drive continued growth in investment volumes across regions. However, market participants remain vigilant, monitoring economic indicators and geopolitical developments that could influence investment decisions.

Czech real estate prices increased by 10.7% in 2024 as market activity rebounds

Real estate prices in the Czech Republic rose by an average of 10.7% in 2024, reflecting a continued recovery in market activity following the post-pandemic slowdown. Property sales increased by 34%, while the sale of new buildings surged by 51%, according to data from the Czech Banking Association and Flat Zone. The housing market is now approaching pre-crisis levels after experiencing a significant upturn in 2023.

The price of older apartments rose by 10% nationwide, with Prague recording an 18% increase year-on-year. Brick houses maintained a significantly higher price per square meter than prefabricated buildings, while new construction prices grew at a slower pace, averaging 8% nationwide and 9% in Prague. The value of family homes remained relatively stable across the regions, but Prague saw a 15% increase in this category.

Sales and Market Trends

The return to pre-crisis transaction levels continued throughout 2024, with new developments experiencing the strongest growth in sales. By the end of the year, over 16,000 vacant apartments in new buildings under construction were available across the country.

The sale of older apartments increased by 24%, while family house sales rose by 37%. Prague and the Central Bohemian Region accounted for the largest share of transactions, with 39% of older apartment sales and 60% of new apartment sales occurring in these areas.

Flat Zone Managing Director Milan Roček noted that the demand for housing in Prague, Brno, and the Central Bohemian Region continues to exceed supply. He emphasized that new construction remains insufficient in areas with the highest demand, pushing prices up, particularly for older prefabricated apartments, which have risen at an unjustifiably high rate compared to new developments. In Prague, the price of older apartments remains four times higher than in regions such as Ústí nad Labem and Karlovy Vary.

Challenges in Housing Availability

Despite an increase in housing construction, the availability of apartments remains a major issue due to high property prices, slow completion rates, and rising mortgage costs, according to Czech Banking Association Chief Economist Jaromír Šindel. He also pointed to limited capital market development and slow economic growth, which has led to stagnant disposable income levels, the slowest in the region over the past year.

While 2024 saw above-average new construction openings, particularly in Prague and the Central Bohemian Region, the number of completed apartments remains below the long-term average. The cumulative housing deficit now exceeds 20,000 apartments, with half of the shortfall concentrated in Prague and the surrounding regions.

With ongoing supply constraints and strong demand in key urban areas, real estate prices are expected to continue rising, further shaping the country’s housing market dynamics in 2025.

Source: CBA and Flat Zone

Former Motol Hospital Director and ČUS Head jailed in corruption case

Former Motol University Hospital director Miloslav Ludvík and Czech Union of Sport (ČUS) chairman Miroslav Jansta have been placed in custody as part of an ongoing corruption investigation related to public procurement at the hospital. The court ruled that both men posed a risk of continuing criminal activities or influencing witnesses. A third defendant, believed to be Mykhailo Popovych from the company Midian-Coral, was also placed in custody.

The European Commissioner proposed custody for five out of 17 individuals facing prosecution in the case, with the court still set to rule on one additional suspect. Meanwhile, the Czech Minister of Health, Vlastimil Válek (TOP 09), is expected to announce the hospital’s new leadership within the coming days.

Corruption Allegations and Financial Implications

According to investigators, Jansta assisted Ludvík and his operational and technical deputy, Pavel Budinský, in legalizing bribes received from hospital suppliers. The police have charged the suspects with bribery, subsidy fraud, money laundering, and harming the EU’s financial interests. If convicted, they could face up to 12 years in prison.

Ludvík and Jansta’s lawyer, Josef Monsport, has appealed the custody decision. He argued that Jansta has chosen not to comment on the allegations and disputed the contents of wiretap recordings cited as evidence in the case. Monsport specifically challenged claims that bribes amounting to tens of millions of crowns were accepted in exchange for inflating the cost of reconstructing the hospital’s Blue Pavilion.

The corruption investigation could also jeopardize EU funding for Motol University Hospital projects. If the allegations of misusing EU financial resources are confirmed, the Czech Republic may be denied further EU funding for hospital projects. So far, the government has spent nearly CZK 841 million on the Motol Cancer Institute, which is expected to cost CZK 4.5 billion, with CZK 3.7 billion originally set to come from the EU through the National Recovery Plan (NPO). The hospital is currently working on seven additional projects under the NPO, worth nearly CZK 1 billion.

Government and Institutional Reactions

Health Minister Válek assured that ongoing hospital construction projects would continue as planned. “None of the projects under contract have been halted. These buildings must be completed,” he stated. Válek dismissed Ludvík from his role on Monday, appointing Lucie Valentová-Bartáková, deputy for medical and preventive care, as the hospital’s interim leader.

The scandal has also impacted the Czech Union of Sport (ČUS). The organization’s board is set to meet later this week to discuss interim leadership arrangements. ČUS spokesperson Jiří Uhlíř confirmed that the union remains fully operational and that it has not been officially contacted by investigators regarding the Motol case. Jansta’s detention also does not affect his role as chairman of the Czech Basketball Federation.

Further Investigations and Additional Suspects

Budinský, who also serves as chairman of the Czechoslovak Legionary Community (ČsOL), is facing internal scrutiny, with an extraordinary meeting of the ČsOL Presidency scheduled for 4 March. According to ČsOL’s regulations, membership is revoked upon a final conviction, meaning the assembly may have to decide on his future role.

Among the other high-profile figures implicated in the case is Luděk Kostka, co-owner of Geosan Group, the company responsible for the Blue Pavilion reconstruction. Reports indicate that Geosan’s sales director, Ivan Havel, is also under investigation. Authorities are additionally probing a CZK 3 billion oncology center contract awarded to Olomouc-based construction firm Gemo, whose director, Miloslav Bouda, is believed to be among the accused.

The police are reportedly investigating other hospital contractors involved in cleaning, painting, heating, and maintenance services, raising the possibility of further charges. The case marks one of the most significant corruption investigations in the Czech healthcare sector in recent years, with authorities continuing to examine the full extent of financial misconduct.

Source: CTK
Photo: Fakultní nemocnice v Motole

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