REWE and Migros Zurich Plan Acquisition of Tegut Stores Pending Approval

REWE Group and Migros Zurich Cooperative have signed an agreement for the potential acquisition of up to 40 stores currently operated under the Tegut brand, with the transaction subject to approval by the Bundeskartellamt.

Under the proposed structure, most of the locations would be integrated into REWE’s supermarket network, while a smaller portion would be taken over by PENNY, part of the REWE Group.

Following completion, the stores are expected to undergo refurbishment and be incorporated into REWE’s existing supply and logistics systems. The retailer indicated that the locations would continue to offer a mix of branded and own-label products, while maintaining links to regional suppliers and organic product ranges.

Peter Maly, CEO of REWE Group, said: “We want to take responsibility for the locations and their teams. For us, this means securing jobs in the same way as the high-quality local supply. This allows us to give employees and markets an economic perspective. For us, the focus is on developing sustainable locations and promoting and welcoming the employees with us.”

Stefan Görgens, Head of Division PENNY Germany, added: “As soon as the approval is granted, we modernize the new markets to our market hall concept. In this way, we offer our customers an extensive range of fresh products and a large selection of attractive brands and own brands at discount-low prices.”

All employees at the affected stores are expected to receive job offers as part of the transition.

The agreement follows a process in which Migros Zurich evaluated multiple potential buyers. Further details on specific locations have not been disclosed due to ongoing regulatory procedures.

The parties intend to submit the transaction for competition review shortly, after which the transfer of the stores can proceed, subject to approval.

Czech Mortgage Lending Rebounds in March as Volumes and Demand Rise

Mortgage activity in the Czech Republic increased significantly in March, with banks and building societies issuing loans totalling CZK 55.4 billion, according to data from the Czech Banking Association. This represents a 37 percent rise compared with February and a 69 percent increase year-on-year.

New lending, excluding refinancing, reached CZK 40.3 billion, up 36 percent month-on-month. At the same time, the average mortgage interest rate edged down slightly to 4.43 percent from 4.46 percent in February.

“The frontload factor of lower interest rate and more welcoming conditions for investment mortgages are likely to translate into strong March numbers,” said Jaromír Šindel, chief economist at the Czech Banking Association. “The first reason reflects the reverberation of the central bank’s New Year’s price rate decline, while March with the Iranian price shock reversed the trend. The second reason is the April activation of the central bank’s stricter rules for investment mortgages.”

The number of newly issued mortgages rose by 30.7 percent from the previous month to 8,381, marking a 25 percent increase compared with a year earlier. The average loan size also grew, reaching CZK 4.81 million, nearly 4 percent higher than in February and 19 percent above last year’s level.

Refinancing activity also picked up. The volume of refinanced and increased loans climbed to CZK 15.1 billion in March, more than double the average monthly level recorded last year. As a result, refinancing accounted for 27.3 percent of total mortgage volumes, above the 2025 average of 20.7 percent.

Households refinancing their loans secured an average rate of 4.16 percent, around 0.5 percentage points lower than a year earlier. According to the association, the higher refinancing volumes reflect overlapping fixed-rate periods from both earlier low-rate environments and more recent higher-rate cycles.

The slight reduction in mortgage rates compared with 2025 levels has had a limited impact on affordability. The average monthly payment for a newly issued mortgage increased by approximately CZK 2,800 due to larger loan sizes, although lower rates reduced payments by around CZK 400. Monthly repayments now average about CZK 25,600 for a typical loan with a maturity of nearly 27 years.

“March was very successful from the point of view of mortgages and one of the factors of this success is the price,” said Petr Gapko, chief economist at Moneta Money Bank. “It was very favorable in March, but it is expected to grow in future months. Geopolitical events are to blame, because the Iranian conflict is raising fuel prices, which will result in higher inflation and probably higher interest rates.”

Source: CTK

Barrandov TV operator moves toward bankruptcy after failed restructuring

The operator of TV Barrandov, Barrandov TV Studio (BTS), is set to enter bankruptcy proceedings after an unsuccessful restructuring process approved by the court in mid-2024. The development was confirmed by owner Jan Čermák.

The company had entered reorganisation with debts of around CZK 1 billion, aiming to stabilise operations. However, a combination of declining advertising revenues and rising energy costs has undermined those efforts.

“We did our best to save the TV and the attempt alone cost me tens of millions of crowns. I regret the result because of the employees who were really trying, and because of the audience,” Čermák said.

According to the owner, the station had approached operational break-even last year, with advertising revenues covering running costs. However, market conditions deteriorated further, with advertising income reportedly falling to roughly one-third of previous levels despite stable viewership. Additional pressure came from a tax authority claim related to VAT refunds from before the insolvency process.

“Although we settled the economy last year, now there’s no way to keep the whole TV going and make up for the reorganization. Bankruptcy is now the only possible solution,” Čermák added.

Investment group S-24 holding, which participated in financing the broadcaster, stated that the Barrandov TV brand is expected to continue in a modified form. The group indicated that programming could remain available on at least one nationwide channel, following the acquisition of a broadcasting licence. The station is expected to operate in a limited or trial mode while its economic viability is reassessed.

Čermák acquired the broadcaster two years ago from Jaromír Soukup. While the television business faces insolvency, other parts of the former media group, including Empresa Media, are expected to continue operating.

The broadcaster’s channels, including Barrandov, Barrandov Krimi and Barrandov Cinema, recorded a combined audience share of 1.94 percent among viewers aged over 15 in March.

Source: CTK

Data Centre Location Gains Strategic Importance as Cloud Gaming Expands in Europe

The growth of cloud gaming is increasingly shaping investment decisions in digital infrastructure, with the physical placement of data centres becoming a key factor in service performance.

Unlike traditional gaming, cloud-based platforms rely on remote servers to process user inputs and stream content in real time. This makes responsiveness highly sensitive to delays in data transmission, placing greater emphasis on infrastructure located closer to end users.

As a result, operators are expanding networks of facilities across multiple regions, aiming to reduce the distance between servers and players. This approach, often associated with edge-based computing, is driving demand for sites that combine strong connectivity with access to reliable power and the ability to support high-performance computing workloads.

In this context, the partnership between DL Invest Group and Boosteroid reflects a broader shift towards more locally distributed infrastructure. Boosteroid operates cloud gaming services across a number of data centre locations globally, while the joint venture with DL Invest Group is intended to expand its presence across Europe.

The partners are planning a series of new facilities, with the first project under development in Bielsko-Biała. The site is being developed in phases, with initial capacity expected to reach between 50 MW and 82 MW, and the potential for further expansion over time.

The choice of location reflects both technical and logistical considerations. The site benefits from existing energy infrastructure and transport connections, which can support the deployment and operation of high-density computing systems. Its position within Central and Eastern Europe also allows service providers to improve coverage across the region.

The facilities are being designed to accommodate a range of uses, including cloud-based gaming, artificial intelligence processing and other data-intensive applications. These requirements are contributing to a shift in how data centres are planned, with greater focus on energy efficiency, cooling systems and scalability.

However, while proximity to users plays an important role in reducing delays, it is not the only factor influencing performance. Network quality, routing efficiency and broader connectivity infrastructure also affect how quickly data can be transmitted.

The expansion of such projects highlights the growing role of Central and Eastern Europe in the wider digital infrastructure landscape. Countries such as Poland are attracting investment due to their geographic position, improving connectivity and capacity to support large-scale developments.

At the same time, the sector remains highly competitive, with global technology firms continuing to dominate cloud infrastructure. Many gaming platforms rely on these broader ecosystems, which may shape how independent providers expand their operations.

Overall, the development of more geographically distributed data centres reflects a wider transition in the digital economy, where performance, location and energy access are becoming as important as computing power itself.

HSF System starts construction of Kaufland store in Hradec Králové

Construction group HSF System has begun work on a new store for Kaufland in Hradec Králové. The project is located between Sokolská Street, Benešova Avenue and Zborovská Street, close to the Mileta intersection, and forms part of a wider redevelopment of the surrounding area. Completion is scheduled for the first quarter of 2027.

The planned building will have two levels, with customer parking on the ground floor and a retail area of approximately 3,000 sqm on the upper floor. Additional smaller retail units are also included in the scheme.

“Our goal is to ensure the construction proceeds smoothly and to deliver a modern retail facility of a quality that meets the requirements of both the investor and future customers,” says Radka Rybolová, Head of the HSF System Center, adding: “We can draw on our many years of experience in the construction of shopping centers and department stores. Retail projects have recently become a significant part of our turnkey projects.”

The design allows for potential future expansion, with the structure prepared for additional office space on upper floors. The development will also include a covered loading area intended to separate deliveries from customer access.

Preparatory work for the project dates back to 2017, although construction was delayed pending upgrades to local transport infrastructure, including the reconstruction of the Mileta intersection. The completion of these works has enabled the project to proceed.

“The implementation of this project was a long-awaited milestone for us. We are excited to see the construction move into its above-ground phase, when the project will begin to take shape rapidly under the hands of our experts and assume its final form,” says František Hucl, Head of the Construction Department at Kaufland.

Panattoni Fully Lets Crawley Logistics Scheme with Major E-commerce Deal

Panattoni has completed the leasing of its Panattoni Park Crawley scheme in the South East of United Kingdom, securing a 10-year agreement with a major e-commerce occupier for the entire 200,000 sq ft facility.

The transaction represents the largest logistics letting in the region so far this year and brings the development to full occupancy. The scheme was delivered without a pre-let in a location characterised by limited availability of large-scale distribution space.

Panattoni Park Crawley is situated near Gatwick Airport and close to the M23 motorway, providing access to key population centres and international freight routes. The project was originally designed as two separate units, with the option to combine them into a single facility, which has now been taken up by one tenant.

The building has been developed to meet current operational and environmental requirements, including high internal clearance, expanded storage capacity and energy efficiency features. Sustainability elements include rooftop solar installations and performance ratings aligned with current market standards.

David McGougan, Senior Development Director for South East at Panattoni, said: “This letting underlines the depth of demand for high-quality, immediately available logistics space in the South East, particularly at scale. Panattoni Park Crawley offered a rare opportunity to secure a 200,000 sq ft facility in a prime location with direct access to Gatwick and the M23.

“The scheme was designed to meet the requirements of modern logistics occupiers, combining scale, specification, and sustainability. Securing this letting demonstrates the continued strength of the market for well-located, future-ready space.

“We are pleased to have let the unit following the recent completion of the facility and continue to see space occupied by the e-commerce sector.”

The deal reflects ongoing demand for modern logistics space in supply-constrained locations, particularly from online retail operators seeking well-connected distribution hubs.

Prague Office Market Enters Prolonged Supply Gap as Availability Tightens

The office sector in Prague is entering a period of constrained availability, as a slowdown in new construction combines with steady occupier interest at the start of 2026.

The city’s total office space is approaching 4 million sqm, yet the addition of new buildings has dropped sharply in recent periods. Only a small amount of space is expected to be completed this year, while the majority of projects currently underway are not due to be finished until later in the decade. This timing gap is reducing the amount of space available in the near term.

As a result, the proportion of vacant offices has declined to around 6 percent across the market, with significantly lower levels in central districts. In these areas, companies looking for modern space are facing increasingly limited options.

This situation is shifting the balance in favour of property owners. Newer buildings are maintaining strong occupancy and stable rental levels, while tenants are finding it more difficult to negotiate favourable terms. In many cases, businesses are choosing to remain in their current locations rather than relocate.

Where moves are taking place, they are typically focused on improving the standard and efficiency of workspace rather than increasing overall size. This is reinforcing demand for newer buildings, while older properties are under pressure to adapt to changing requirements.

Rental levels in the city centre have continued to rise gradually, with top-tier space reaching close to €30 per sqm per month. At the same time, a notable share of future projects has already been secured by tenants ahead of completion, limiting the extent to which upcoming supply will ease current constraints.

Another factor reducing available space is the growing trend of companies securing premises for their own use, removing these buildings from the leasing market altogether.

Although development activity continues in selected areas, new projects are being approached carefully due to cost pressures and complex approval processes. This is particularly evident in central Prague, where planning conditions are more restrictive.

The investment market is showing signs of stabilisation, with continued interest in well-located buildings that offer reliable long-term income. However, older assets are facing increased scrutiny, especially where upgrades are required.

Taken together, these trends suggest that Prague’s office market is moving into a phase where limited new supply, rather than a lack of demand, will be the main factor shaping conditions in the years ahead.

Source: CIJ.World Research & Analysis Team

Fuel and housing costs push Poland’s inflation higher in March

Price growth in Poland continued to pick up in March, with rising transport and housing-related expenses playing a central role, according to the latest data from Statistics Poland.

Consumer prices were higher than a year earlier, with a noticeable increase also recorded compared with February. The pace of growth reflects stronger pressures in services, which are rising faster than the cost of goods.

Transport costs were among the most significant contributors to the monthly increase, driven by a sharp rise in fuel prices. This category alone accounted for a large share of the overall price movement during the period. Housing-related expenses, including utilities and energy, also continued to add to inflationary pressure, maintaining their position as one of the largest cost components for households.

Food prices showed a more moderate increase compared with other categories, helping to partially offset the overall rise. Meanwhile, sectors such as leisure and hospitality also contributed to the upward trend, although to a lesser extent.

At the same time, some areas of household spending recorded minor declines, which helped limit the overall increase in prices. These included selected durable goods and communication-related expenses.

Despite the upward movement, inflation remains within the central bank’s tolerance range, suggesting that price growth is still broadly under control. However, the latest figures confirm that external factors—particularly energy and fuel costs—continue to shape short-term inflation trends.

Overall, the March data points to a renewed build-up of price pressures in Poland, with transport and housing costs likely to remain key drivers in the months ahead.

Penta Plans CZK 1.1bn Residential Development in Central Prague

Penta Real Estate is moving forward with a new housing development in the centre of Prague, with construction scheduled to begin this summer in the Petrská district.

The project will be developed on Petrská Street, on land currently occupied by a former telephone exchange from the 1970s. Once completed, the scheme will provide 82 apartments and two ground-floor commercial units. The overall investment is expected to exceed CZK 1.1 billion, with delivery planned for 2028.

The building is designed to offer higher-end residential units, supported by underground parking and a landscaped internal courtyard. The developer obtained the necessary approvals following discussions with neighbouring property owners and local residents, particularly regarding demolition works and construction conditions.

Rudolf Vacek, Head of Construction at Penta Real Estate, said that “an acceptable compromise was achieved that takes into account the investor’s needs and ensures the safety and health protection of local residents.”

The architectural concept has been developed by Pantograph, in cooperation with conservation experts and the Prague 1 municipality. The façade facing the street will be structured to reflect the traditional character of the surrounding area, while the building’s height has been aligned with neighbouring properties. Selected artistic features from the original structure are also expected to be retained.

Beyond Petrská, Penta Real Estate is continuing work on several other sites across Prague, including redevelopment projects in Smíchov and Nusle, as well as further phases near Masaryk Railway Station, where it previously completed the Masaryčka office building. The developer is also preparing to launch construction in the former Žižkov freight station area.

New residential construction in Prague’s historic centre remains relatively limited, with projects often facing complex approval processes and close scrutiny from heritage authorities. As a result, most new housing supply continues to be concentrated outside the city’s core.

China Maintains Early-Year Growth Pace Amid Rising External Pressures

China’s economy expanded by around 5 percent in the first quarter of 2026, according to figures released by the National Bureau of Statistics of China, placing growth slightly above market expectations and keeping the country broadly on track with its annual target.

The performance marks a steady start to the year for the world’s second-largest economy, supported by industrial activity and policy measures aimed at sustaining momentum. On a quarterly basis, output also increased compared with the final months of last year, indicating continued, if moderate, expansion.

Despite the positive headline figure, recent trade data suggests that conditions may be becoming less supportive. Export growth slowed in March following a strong beginning to the year, pointing to weaker demand in overseas markets and a more uncertain global environment.

Economists warn that geopolitical developments could begin to weigh more heavily on the outlook. China’s reliance on imported energy makes it sensitive to disruptions in global supply routes and price volatility. Rising fuel costs, linked to tensions in the Middle East, are expected to feed through into production and transport expenses.

“However, a protracted war and longer-term higher energy prices would probably start to have a negative impact on economic growth,” said Lynn Song of ING.

Concerns are also emerging around the potential knock-on effects for global demand. Slower growth in major economies could reduce appetite for Chinese goods, adding pressure to an export sector that remains a key pillar of activity.

“If the war with Iran is not resolved quickly, it is likely to damage the growth of the world economy, which will have a negative impact on the ability to absorb Chinese exports,” said Eswar Prasad of Cornell University.

The International Monetary Fund has recently lowered its forecast for China’s growth this year to around 4.4 percent, reflecting a combination of external risks and ongoing domestic challenges, including weak property investment and cautious consumer spending.

While the first quarter data indicates resilience, the trajectory for the remainder of the year will depend on how these pressures evolve and whether domestic support measures can offset a more fragile global backdrop.