HIH Invest expands residential fund portfolio with €516m property acquisition from Vonovia

HIH Invest Real Estate GmbH (“HIH Invest”) has launched a new residential real estate fund in collaboration with Vonovia. Following the model of their first joint fund launched in September 2024, this new fund allows HIH Invest to act as the majority shareholder on behalf of a consortium of institutional investors. While HIH Invest will manage the assets and funds, Vonovia will oversee property management.

The fund’s portfolio includes ten residential and mixed-use properties acquired for approximately €516 million. Comprising around 127,000 square meters, the assets feature 97,600 square meters of residential space and 8,700 square meters for commercial use, plus 928 parking spots. With about 1,700 residential units, the portfolio primarily includes two- and three-bedroom apartments, as well as student housing and serviced apartments. The properties are strategically located across major German cities, with three in Berlin, two in Stuttgart, and others in Hamburg, Leipzig, Dresden, Munich, and Falkensee.

Felix Meyen, Managing Director at HIH Invest, commented: “We’ve secured an appealing, energy-efficient portfolio situated in Germany’s key urban hubs. These buildings are compliant with KfW-55 or KfW-55 EE sustainability standards, and the renovated properties have undergone extensive energy upgrades. Additionally, two properties are targeting DGNB Gold certification for sustainability.” Meyen highlighted the convenience of the locations, which are close to essential amenities and public transport, as a key factor in attracting tenants.

Aligned with Article 8 of the EU Sustainable Finance Disclosure Regulation, the new fund integrates sustainability into its strategy, with Vonovia providing a guaranteed leasing service for residential and commercial units. HIH Invest’s Carsten Demmler stated, “Amidst a challenging market, we’ve successfully attracted a group of seven institutional German investors. With property prices stabilizing and demand for housing exceeding supply, we see strong potential for rent growth.”

This partnership builds on their previous collaboration, where they co-launched a fund with a €630 million investment in residential developments. HIH Invest’s Alexander Eggert noted Vonovia’s reliability as a partner, saying, “Our joint efforts have yielded a high-quality investment opportunity with a robust risk-return profile, and we’re excited about our ongoing collaboration with Vonovia and our investors.”

The transaction was supported by Hogan Lovells for legal and tax advice, while Drees & Sommer conducted technical and ESG due diligence.

ELECTROPLAST invests €9 million to modernize and expand in railway infrastructure

Romanian electrical cable manufacturer ELECTROPLAST has embarked on a significant modernization initiative, committing over €9 million to upgrade its factory and expand its role in major national railway infrastructure projects. This investment strengthens ELECTROPLAST’s position as a key player in high-performance cable production and supports the country’s energy transition and infrastructure modernization efforts. With Romania’s electrical cable market valued at an estimated 8 billion RON, the company is positioning itself at the forefront of industry developments.

In a landmark move, ELECTROPLAST has secured contracts for several critical railway projects, including the modernization of the Caransebeș-Timișoara-Arad line and the electrification of routes such as Cluj Napoca-Episcopia Bihor, Craiova-Caransebeș, and Apata-Cața. The company’s contributions to these projects underscore its commitment to supporting Romania’s railway infrastructure upgrades, aligning with the EU’s push for sustainable, efficient transport networks.

Dan Burian, CEO of ELECTROPLAST, highlighted the strategic value of these initiatives: “Our investment in cutting-edge technology and our involvement in pivotal infrastructure projects reinforce our role as a key supplier in projects driving a sustainable, high-performance future. We are proud to leverage our three decades of experience to modernize Romania’s industrial and transport landscapes.”

Part of the company’s 9 million EUR project includes purchasing advanced technological equipment, expanding production facilities, and integrating energy-efficient solutions. ELECTROPLAST recently signed a contract with the Ministry of Energy to acquire two state-of-the-art production machines valued at 10.9 million RON, with 4.6 million RON funded by the Ministry. This modernization will effectively triple the company’s production capacity and enhance the quality of its cables, aligning with global energy trends demanding sustainable, high-efficiency technologies as energy consumption is projected to increase by 50% by 2040.

ELECTROPLAST’s initiatives come as aging European low-voltage distribution networks near the end of their lifecycle, necessitating renewal with durable and efficient components. By advancing production capabilities, ELECTROPLAST is prepared to meet both domestic and European demand for resilient, eco-friendly cables, all while reducing operational costs and carbon emissions through digitalized, efficient production processes.

The company’s recent financial performance underscores its steady growth: in the first half of 2024, ELECTROPLAST reported an 80 million RON turnover, a 3% increase from the previous year, and a significant 56% rise in EBITDA, reaching 4.7 million RON. This growth was driven by a balanced product and client mix, alongside the unblocking of railway infrastructure projects funded by Romania’s National Recovery and Resilience Plan (PNRR).

Through strategic investments and an expanding portfolio of large-scale infrastructure projects, ELECTROPLAST is not only enhancing its manufacturing strength but also positioning itself as a pivotal player in Romania’s journey toward modernized, sustainable infrastructure solutions.

PSN completes Skyline project in Prague with high-demand small apartment units

PSN has successfully completed the Skyline project in Prague’s Chodov district, offering highly sought-after small apartment units, featuring layouts of 1+kk and 2+kk. These compact units cater to a range of needs, including student housing, starter homes, and investment opportunities. Currently, about a quarter of the units are still available for purchase. Skyline also includes 12 office spaces and shared facilities such as a gym, bike room, party room, and rooftop terrace.

The project involved a major renovation of part of the former Top Hotel, transforming two adjacent buildings with a full interior refurbishment and a refreshed, modernized exterior. “Our approach combines traditional and community elements to create a unique living concept ideal for young people and students starting out,” says Jaroslav Macháč, Director of Residential Projects at PSN. “Skyline also offers a timeless investment opportunity in response to increasing demand for rental properties, especially as the real estate market trends toward rentals,” he adds.

To attract investors, PSN has partnered with real estate investment firm Bureš & Partners, offering select 2+kk units with an immediate 4% discount until November 30, yielding up to 16.6% annually. Investors can expect rental incomes of up to CZK 20,000 per month with full management services provided, from selecting units to securing mortgages, interior furnishings, and tenant placements.

Skyline residents benefit from a variety of shared facilities designed to enrich daily life and foster a sense of community. Amenities include a fully equipped gym, yoga room, and party room with table football and a large screen TV. Additional conveniences include a lounge across from the reception, laundry facilities, a bike room, and ample storage options. The rooftop terrace offers panoramic views of Prague, while the outdoor relaxation area with a fireplace and flowerbeds enhances the building’s community feel.

Prospective buyers can explore four model apartments, each designed with unique themes inspired by European capitals—Prague, Oslo, and Berlin—created in collaboration with design partners Kitchen and Interior Living, and architecture studio Reaktor. The Prague-inspired unit features warm tones and traditional materials, while Berlin offers an edgy, high-contrast aesthetic, and Oslo embodies minimalist Nordic design. Recently, an additional model unit was introduced in partnership with retailer Bonami, allowing future residents to visualize a variety of design possibilities. Buyers are encouraged to add personal touches to their interiors, tailoring each space to their tastes.

Skyline’s location provides the perfect balance between urban amenities and natural surroundings. With easy access to grocery stores, bistros, and cafes, residents are just a five-minute drive from Westfield Chodov, the largest shopping center in the Czech Republic. A nearby bus stop connects to the Chodov metro station on Line C within nine minutes, making commuting convenient. For outdoor recreation, the Hostivařský Forest Park offers tranquil walking paths, while the Hostivařská Dam and the Jedenáctka Chodov aquapark provide opportunities for water sports. The area is also well-suited for cycling, appealing to an active lifestyle.

With Skyline, PSN presents a thoughtfully crafted residential space that aligns with Prague’s evolving housing needs and lifestyle trends, appealing both to residents and investors alike.

BMW prepares for all-electric future: Drees & Sommer supports major plant overhaul in Munich

BMW’s Munich plant, a key site in the automaker’s global production network, is undergoing a massive transformation to produce the next generation of all-electric “Neue Klasse” vehicles. With around 7,000 employees and a daily output of approximately 1,000 vehicles, the facility is set to become fully electric by 2027. BMW is investing €650 million into a new assembly hall, logistics facilities, and bodywork production, aiming to launch operations by November 2026. Drees & Sommer SE, an interdisciplinary project management firm, is working alongside BMW, PORR AG, and PDE to execute the complex overhaul while keeping the plant operational.

Maximilian Lammel, team leader at Drees & Sommer, noted the tight timeline as one of the project’s primary challenges. “We started demolition in April 2023, and new vehicles must roll off the line by late 2026,” Lammel said. Ensuring that construction does not disrupt ongoing production requires a streamlined, intensive communication and workflow system among all project stakeholders.

The project is guided by a unique “Partnering-Abwicklungsmodell,” a partnership approach that emphasizes joint accountability among BMW, PORR AG, and Drees & Sommer. By fostering open communication and shared responsibility, this model aims to eliminate the miscommunication that often complicates large-scale projects. “Traditional setups can lead to communication breakdowns across layers, but our partnership model creates a collaborative environment with direct information flow,” Lammel added.

Adapting techniques from the automotive industry, Drees & Sommer applies Lean management principles to streamline the construction schedule. “Our Lean approach ensures efficient coordination, enabling all teams to work harmoniously toward a common outcome,” said Florian Langlotz, partner in charge of Drees & Sommer’s Automotive Division. Planning every detail down to specific times for staff, machines, and materials, the project recently achieved a milestone, completing the new assembly hall’s shell in just ten days.

The team relies on a “digital twin” of the site, providing a virtual model enriched with data on materials, costs, durability, sound insulation, and fire safety. “This tool ensures everyone has immediate access to critical information,” explained Drees & Sommer team leader Simon Rogalski. By catching potential issues before they impact construction, the digital twin helps prevent costly delays, promoting transparency and collaboration.

Set for completion in 2026, the new assembly facilities will enable BMW’s Munich plant to focus exclusively on all-electric vehicles. By 2027, this historic site will lead BMW’s global shift to an all-electric production line, underscoring the brand’s commitment to sustainability and innovation in electromobility.

Union Investment sells Vienna’s “Rund Vier” office complex to Thalhof Immobilien

Union Investment has announced the sale of its “Rund Vier” office complex, a landmark property in Vienna’s Viertel Zwei district, to Austrian real estate firm Thalhof Immobilien. Formerly part of Union Investment’s open-ended real estate fund, UniImmo: Deutschland, the ÖGNI Gold-certified complex has been a long-standing asset in the portfolio. The transaction price remains confidential per an agreement between the parties.

“Rund Vier,” designed by renowned architects Henke Schreieck, is a distinctive office complex comprising four uniquely shaped buildings, with a total rental area of approximately 25,000 square meters. Its prime location in Viertel Zwei — one of Vienna’s top business districts — offers seamless access to the U2 underground line and proximity to the Vienna University of Economics and Business, while also bordering the recreational Prater park.

The sale marks the end of a successful 15-year holding period during which the property generated consistent returns for UniImmo: Deutschland. “This was a strategic decision to optimize our portfolio by reducing our office exposure,” explained Alejandro Obermeyer, Union Investment’s Head of Investment Management DACH.

The transaction was facilitated by brokerage firm ZOECHLING RE. Union Investment was advised on legal matters by Schönherr Rechtsanwälte and on tax issues by TPA, while Thalhof Immobilien received legal support from Tiefenthaler Gnesda Rechtsanwälte and tax guidance from BDO Austria.

This deal reflects Union Investment’s continued focus on refining its portfolio and Thalhof Immobilien’s growing presence in Vienna’s office market.

Prague’s real estate portfolio value climbs to CZK 8.843 billion following strategic developments

The Prague Development Company (PDS), an organization managing the capital city’s real estate assets, has reported a rise in its portfolio value to CZK 8.843 billion. The latest valuation, conducted by international consultancy Knight Frank, reflects the market value of 757,000 square meters of urban land designated primarily for residential projects, underscoring Prague’s ongoing commitment to expanding urban rental housing.

This updated market valuation, effective as of August 1, serves as a key reference for Prague’s strategic planning, informing decisions on property use and future development financing. “Our proactive approach in managing these public assets is producing real value, as demonstrated by the consistent growth in market worth,” said Petr Hlaváček, Prague’s Deputy Mayor and Minister for Territorial Development. He noted the impact of recent zoning changes in Nové Dvory and Palmovka, which have unlocked new development potential and significantly increased land values.

PDS first assessed its land portfolio’s market value in 2021, with an initial estimate of CZK 2.939 billion. By 2023, the portfolio’s worth had risen to CZK 7.123 billion, and this year it stands at CZK 8.843 billion, marking a substantial increase as new land assets have been incorporated and previously untapped potential has been realized.

The 2023 valuation was influenced by adjustments in the property portfolio, including the transfer of Nová Palmovka Centre out of PDS management, with comparable land values increasing nearly CZK 3 billion year-over-year. Notably, the original 10 sites appraised in 2021 have nearly doubled in value, reaching CZK 6.604 billion this year, thanks to ongoing development initiatives.

“The active management approach we apply aligns with private-sector standards, ensuring the highest possible return on municipal assets,” stated PDS Director Petr Urbánek. “Regular market valuation not only provides the city with insight into the current market, but also guides upcoming investment and development financing decisions.”

The latest valuation marks a shift in Prague’s approach to public land management, with an emphasis on retaining city ownership rather than outright sale. Adam Zábranský, Prague’s property councillor, praised the move toward value-added urban asset management. “This strategic approach gives the city control over the future of its land and will support the construction of new city apartments, contributing long-term value for Prague’s residents,” he said.

Prague’s market-aligned valuation approach positions it to maintain control over urban development, while boosting public assets and expanding housing opportunities.

Panattoni to launch billion-crown sustainable industrial zone near Pilsen

Panattoni, in collaboration with WOOD & Company’s Logistics Fund, has announced plans to establish Panattoni Park Pilsen West III, a cutting-edge industrial zone near Úherce, just 14 kilometers west of Pilsen. This project, representing a billion-crown investment, will offer 40,000 square meters of rentable space in a high-demand location, strategically positioned near the D5 motorway with key links to Germany and the rest of Central Europe.

The new industrial complex will incorporate advanced green technologies, with solar panels and heat pumps designed to reduce greenhouse gas emissions and improve energy self-sufficiency. A greywater recovery system will recycle water from sinks and showers for technical use, while a dedicated well will reduce reliance on public water supplies. To support local biodiversity, the development will feature a pond to provide habitat for amphibians. The project will target a BREEAM New Construction certification at the “Excellent” level, underscoring its sustainability credentials.

“This partnership with WOOD & Company is a significant step forward in sustainable industrial development in Pilsen,” stated Ondřej Špalek, Panattoni’s Chief Operating and Financial Officer. “With our focus on environmentally friendly facilities, we aim to create optimal conditions for leading manufacturing and logistics companies.”

WOOD & Company’s Jiří Hrbáček echoed the enthusiasm, noting, “Given the current permitting landscape in the Czech Republic, this project presents a unique investment opportunity for our clients.”

Beyond its environmental initiatives, Panattoni is also committed to local community development. In collaboration with Úherce, the company will contribute funding for a new multifunctional playground. Vlastimil Blažek, Mayor of Úherce, welcomed the project, adding, “Panattoni’s development will bring valuable job opportunities and stimulate local services for our residents.”

With Panattoni Park Pilsen West III, Panattoni aims to create a benchmark in responsible industrial development, attracting top companies to enhance the region’s economic and environmental landscape.

Mucha museum set to open in renovated Baroque Savarin Palace, Prague

he Mucha Museum will soon find a new home in the recently renovated Savarin Palace, a historic baroque landmark in the heart of Prague. The Mucha Foundation and the Savarin project developer, Crestyl, announced the museum’s relocation today. Renowned architect Eva Jiřičná and her studio AI Design will oversee the design of the new exhibition, which will cover over 1,100 square meters of some of the palace’s most historically significant spaces. Following extensive restoration work, these areas will soon be open to the public, with the museum scheduled to open on January 24, 2025.

“The previous space often became crowded, especially in peak seasons. Moving to Savarin allows us to present Mucha’s work in an iconic setting with more room for both tourists and locals,” said Marcus Mucha, Executive Director of the Mucha Foundation and great-grandson of artist Alfons Mucha. “The palace’s historic ties to Czech culture make it the ideal setting for this new museum.”

The museum will showcase a range of previously unseen works, including early oil paintings, studies for decorative pieces, and items reflecting Mucha’s interest in Freemasonry and Slavic history. In addition, the exhibition will be regularly updated to maintain a fresh experience for returning visitors.

Historically, Savarin Palace has hosted significant cultural activities. It was once home to the Ethnographic Museum, now part of the National Museum, and later, a popular social club frequented by prominent Czech figures. Crestyl’s director, Simon Johnson, highlighted the transformation of the palace from a former casino into a cultural destination. “Replacing the casino with a museum dedicated to Alfons Mucha aligns perfectly with our goal to revitalize these historic spaces and put them on the cultural map of Prague,” he stated.

The palace’s restoration, led by Crestyl, began in late 2021 and was completed in September, revealing valuable architectural details. Eleven restored Baroque sculptures now adorn the façade, part of a meticulous renovation effort with an investment exceeding half a billion crowns.

Architect Eva Jiřičná expressed her excitement for the project, noting, “Creating a museum in a setting like Savarin Palace allows us to blend 18th-century grandeur with Mucha’s artistic legacy. Our aim is to create harmony between two distinct worlds – baroque architecture and Mucha’s work – to foster a deeper understanding of art and cultural history.”

The Mucha Museum’s opening in January will bring new life to Savarin Palace, and ongoing plans for the Savarin complex aim to establish a dynamic public space with gardens, cultural venues, and a new gallery dedicated to the Slavic Epic, strengthening the cultural connection between Prague’s iconic Wenceslas Square and surrounding streets.

KLM Real Estate sells Slovak and Czech retail park portfolio to Patria Investiční Společnost

Slovak real estate developer KLM Real Estate has finalized the sale of a portion of its retail park portfolio to Patria Investiční Společnost, marking Patria’s third acquisition this year for the ČSOB Nemovitostní mutual fund. The portfolio, which includes five retail parks across Slovakia and the Czech Republic, will initially be available to clients in the Czech Republic in 2025.

The transaction features properties in Zvolen, Bytča, Humpolec, and Lipník nad Bečvou, totaling over 30,700 m² of fully leased retail space with high-profile tenants. Known for their sustainability features, these Class A assets include green roofs, heat pumps, and photovoltaic power infrastructure, meeting stringent energy standards. The OC Klokan Zvolen, Slovakia’s largest retail park, exemplifies KLM’s commitment to sustainable development.

The sale was brokered by international advisory firm CBRE and the law firm AK Novák, representing KLM. “This acquisition allows us to diversify our portfolio further while strengthening our regional presence,” said Nina Kozáková, Chairwoman of Patria Investiční Společnost.

Rastislav Čačko and Michal Kozáček, co-owners of KLM Real Estate, emphasized the alignment with KLM’s growth strategy, noting that the sale will support further expansion in Slovakia and the Czech Republic. “We’re pleased to have found a strong investor in Patria, validating the appeal of retail parks to institutional investors,” they stated.

CBRE’s Senior Director Marián Mlynárik added, “This transaction highlights the liquidity and quality of KLM’s retail parks, which are drawing increasing interest from investors and delivering returns comparable to shopping centers.”

Warsaw office market makes strong comeback with new projects and high tenant demand

The Warsaw office market is regaining momentum as developer activity rises, with over 70,000 sq m of new office space delivered by September 2024 and around 280,000 sq m under construction. According to AXI IMMO’s latest report, take-up remained stable at 490,000 sq m in the first three quarters, indicating consistent demand for office space in the capital.

Since January, 76% of new office completions, totaling 6.24 million sq m, were concentrated in Warsaw’s central zones. Major projects completed include the modernized Saski Crescent (15,500 sq m by CA Immo) and Vibe A (15,000 sq m by Ghelamco). The Daszyńskiego Roundabout area has emerged as Warsaw’s largest office hub, with 1.15 million sq m, representing 18% of the city’s total office stock.

Emilia Trofimiuk, Research Manager, Research Department, AXI IMMO, comments: “On the Warsaw office market, we are seeing a gradual return of developers to somewhat more activity. Developers are initiating new investments, emphasising the city’s centre zones. The Centre-West office subzone, near Daszyńskiego Roundabout, has 1.15m sq m of existing space, accounting for about 18% of the capital’s total office stock. In turn, the whole Warsaw office market has 15% more new supply under construction than last year, showing a steady recovery of developer activity and additional market expansion in the future years.”

Developer activity has increased by 15% year-on-year, with 82% of new stock under development in central zones. Key projects include The Bridge (47,000 sq m by Ghelamco), Upper One (35,900 sq m by Strabag), and V Tower (32,700 sq m by Cornerstone), all set to boost Warsaw’s office landscape by 2025.

Tenant demand remains strong, with sectors like banking, insurance, IT, and business services leading office leases. Major transactions include Santander Bank’s move to The Bridge in the Centre-West zone, securing 24,500 sq m in Q3 2024.

Vacancy rates dropped slightly to 10.7%, while rental rates in central areas held steady between EUR 19 and EUR 27/sq m/month. AXI IMMO notes a trend toward longer lease terms, with companies increasingly opting for well-located, ESG-compliant offices that support hybrid work models and feature green amenities.

Bartosz Oleksak, Associate Director, Office Department, AXI IMMO, said: “Since the beginning of the year, tenants from the banking, insurance, IT, business services, and manufacturing sectors have been the most active in the Warsaw office market. According to observed trends, client relocations from neighbouring office zones and subzones to the region of Daszyńskiego Roundabout continue to be significant. These are demonstrated by the largest transaction in Q3 2024. Santander Bank will relocate from the Central Business District zone to The Bridge building in the Centre-West zone, occupying a 24,500 sq m space under a pre-let agreement. AXI IMMO represented a customer that relocated from Mokotów-Służewiec to a new office space near Rondo Daszyńskiego, measuring roughly 1,300 sq m.”

Jakub Potocki, Associate Director, Office Department, AXI IMMO, explains: “’We are witnessing a trend towards lengthening the duration of new leases, with 7-year leases becoming more common. Following the pandemic, corporations are attempting to maximise their office space by shifting to more desirable locations and altering workplaces to satisfy the demands of employees in a hybrid model. The minimal cost of completing the shell and core space stays about EUR 800-900 per sq m. In addition, the capital’s office sector is experiencing the repositioning and refitting of older B-class office buildings and the conversion of purpose to residential. Many instances of this can be seen today in the Służewiec district, among others. Another tendency is the destruction of older office buildings to use the available land to develop contemporary office structures that meet current market criteria. Replacing the destroyed Atrium International office building with the newly planned Upper One project is one example of such a procedure in which the office function will be maintained. The new buildings continue the ESG trend by providing additional green space and community amenities. Office buildings are also implementing various technological innovations to save energy expenditures.”

Author: AXI IMMO

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