Redkom Development breaks ground on largest retail park in Karkonosze region

The construction of Przystanek Karkonosze, set to be the largest retail park in the Karkonosze region, has officially begun. Located in Miłków, just outside the popular tourist town of Karpacz, this ambitious project by Redkom Development is scheduled for completion in the second and third quarters of 2025.

Spanning 16,000 square meters of gross leasable area (GLA), the retail park will house approximately 30 stores and service units, catering to a wide range of sectors including fashion, footwear, electronics, home furnishings, sports equipment, drugstores, catering, and DIY services. The Lidl Polska chain will serve as the anchor food operator, offering local residents and visitors a convenient shopping option.

Redkom Development is partnering with Trasko Invest, a well-established general contractor with over 30 years of experience in the Polish and international markets. Trasko Invest has a track record of delivering over 1,000 projects, amounting to nearly five million square meters of commercial, residential, and logistics spaces. Architectural design for Przystanek Karkonosze is led by Artside Architekci, ensuring a modern and aesthetically pleasing structure that aligns with the region’s character.

In addition to Trasko Invest, Gleeds Polska is managing the overall investment, providing expertise in cost management, tenant coordination, and BREEAM certification—a global standard for sustainable building practices. Gleeds, a global construction consultancy with a 130-year history, has been active in Poland for over 35 years, operating out of seven offices across the country.

“Breaking ground on this development marks the start of a project that will transform Karpacz,” said Andrzej Chodacki, Project Manager at Redkom Development. “This retail park will not only be a commercial hub, but also a driver for local economic growth, creating jobs, fostering partnerships with local businesses, and adding a major attraction for both residents and tourists.”

The commercialization of Przystanek Karkonosze is being overseen by Mallson Polska, ensuring a diverse and exciting tenant mix that will draw in visitors from all over the region.

As construction progresses, this development promises to reshape the retail landscape of Karpacz and further enhance the Karkonosze region’s appeal as a top tourist destination.

Galardia Shopping Center Sold to Future Estate by Stage Capital

The Galardia Shopping Center in Starachowice, developed by Stage Capital and Sierra Balmain, has been sold to Future Estate. The transaction was finalized on September 26, 2024, with Avison Young representing the seller as the exclusive sales agent.

Galardia, the first modern shopping and entertainment hub in Starachowice, spans 18,000 sqm and has been a key retail destination since its opening in October 2014. The center offers over 50 stores featuring well-known Polish and international brands such as Reserved, Rossmann, Media Expert, and Jysk, as well as the region’s first multi-screen Helios cinema with four screens and seating for over 600 guests.

Stage Capital, a European financial investor, originally acquired the site in 2012. Sierra Balmain, a leading commercial real estate advisory firm in Poland, played a crucial role in the center’s development and management, overseeing design, leasing, and asset management. Since opening, Galardia has maintained high occupancy rates, achieving full lease-out in the years following its debut.

“When we acquired the site in 2012, our goal was to create a vibrant retail destination with a diverse tenant mix,” said James Huckle, Partner at Stage Capital. “In 2023, Galardia welcomed 2.3 million customers and saw strong growth, particularly after Kaufland’s opening in 2022. This sale marks the successful conclusion of our investment in the Polish retail market.”

Michał Ćwikliński, Regional Manager for the EMEA Region at Avison Young, highlighted the center’s consistent performance: “Galardia Shopping Center has shown strong footfall and stable revenue. Fully leased to top tenants, it remains a key retail asset with excellent connectivity to surrounding areas. This transaction reflects the ongoing demand for large, well-performing retail properties in Poland.”

The sale of Galardia reinforces investor confidence in the Polish retail sector, with Future Estate now set to continue the center’s successful legacy.

InPost opens largest logistics centre in Wola Bykowska, Poland

InPost Group has inaugurated its largest logistics centre in Wola Bykowska, near Warsaw and Łódź, significantly expanding its operations in Poland. InPost is now the second-largest logistics operator in the country, according to InPost President Rafał Brzoska.

“In 2016, we opened our first sorting plant in Wola Bykowska, planning for it to last a decade. However, the rapid growth of the InPost Group has far exceeded our expectations. Last year, we began building a new logistics centre, twice the size of the original, to keep up with the rising demand for cutting-edge logistics services. This new facility is the largest logistics hub in Poland,” Brzoska said.

The new centre, covering up to 85,000 sqm, has a capacity to process up to 85,000 parcels per hour. It includes four dedicated courier routes serving 120 couriers. The building has achieved BREEAM Excellent certification and is equipped with a 200 kWh photovoltaic system, with the potential for expansion to 1 MW. It also features AI-enhanced CCTV, car chargers, bicycle charging stations, hybrid heating systems, and heat pumps.

InPost continues to expand its logistics network, now operating 71 branches across Poland. Recent additions include branches in Kielce, Radom, Jelenia Góra, Ciechanów, and Ruda Śląska. The company has also grown its electric vehicle fleet to nearly 1,300 and leads the country in private EV charging points with over 700 stations.

Founded in 1999 by Rafał Brzoska, InPost is a leading e-commerce logistics platform, known for its parcel lockers across Poland, the UK, and Italy, as well as courier and fulfilment services for e-commerce sellers. InPost expanded internationally with the acquisition of France’s Mondial Relay in 2021 and debuted on Euronext Amsterdam the same year.

Source: InPost and ISBnews

PwC: Poland’s PRS market grows by 32%, reaching 19,400 units in H1 2024

Poland’s Private Rented Sector (PRS) saw significant growth in the first half of 2024, with the number of completed units rising by 32% year-on-year to 19,400, according to a report by PwC Polska. Units under construction also increased by 10%, reaching 14,600. By 2028, the total number of completed PRS units could rise to nearly 80,000.

The report, titled “I am Institutional – A Favorable Environment for New Transactions,” highlights a slowdown in the housing market, with demand for home sales weakening. The end of the “2% Mortgage” program reduced financing options, leading to a 50% drop in sales in key cities like Warsaw and Krakow in Q2 2024 compared to Q3 2023. This slowdown is creating opportunities for PRS funds, which could become vital partners for developers.

“The slowdown in the home sale market may open doors for new PRS market transactions. Both sectors compete for land, and the decreased interest in home buying could fuel PRS growth,” said Kinga Barchoń, PwC Polska partner and real estate leader.

The first half of 2024 was active for new PRS projects, with over 3,000 new units starting construction. Three major investors—Resi4Rent, Vantage Rent, and PFRN—control over 50% of the market.

Despite its growth, the PRS market faces challenges, including inconsistent tax regulations and issues with VAT neutrality for business entities, which require careful planning to mitigate risks, according to PwC’s real estate tax expert, Marta Pabańska.

In Warsaw, PRS units increased by 931 to 8,400, with another 4,700 under construction. Resi4Rent and Heimstaden Bostad lead the market, while other key players like AFI Europe and NREP continue expanding their portfolios.

Wrocław saw a 38% increase in PRS units, now offering 3,300, while Kraków reached 3,000 units, with significant growth expected from Heimstaden Bostad and LEW Invest. Poznań and Tri-City also reported increases in PRS availability, though Łódź saw little change with limited new developments.

The report highlights that the PRS market remains divided among smaller developers but is poised for further growth in the coming years.

Source: PwC and ISBnews

BLIK Romania receives authorization from National Bank to begin operations

BLIK Romania has been officially authorized by the National Bank of Romania (BNR) to commence operations, according to the Polish Payment Standard. This approval marks a significant step in expanding BLIK’s mobile payment system into the Romanian market.

The authorization will allow BLIK to develop its payment system in Romanian leu (RON) and partner with local payment service providers. Initially, the company plans to focus on e-commerce payments, capitalizing on Romania’s rapidly growing online shopping sector.

“The BNR authorization is crucial for BLIK’s expansion in Romania, a key market in Central and Eastern Europe. The surge in digital growth and the increasing adoption of cashless payments create the ideal conditions for introducing BLIK’s modern payment solutions,” said Ryszard Drużyński, President of BLIK Romania.

BLIK Romania, registered in December 2022, officially announced its activity in March 2023. Since then, it has worked on aligning with local regulations and developing a market-specific strategy. With the BNR’s approval granted on October 1, 2024, BLIK Romania is set to roll out its services to all authorized payment providers in the country.

The company’s strategy involves gradually introducing BLIK payments across all channels, with an initial emphasis on e-commerce.

“BLIK’s success in fast, secure online payments across Poland and Central and Eastern Europe positions us well to thrive in Romania’s evolving digital landscape. As Romania’s e-commerce sector continues to grow, we are confident in BLIK’s ability to lead in this space,” added Dariusz Mazurkiewicz, Chairman of BLIK Romania’s Supervisory Board.

BLIK is a mobile payment standard operated by Polish Standard Payments (PSP), with shareholders including major Polish banks and Mastercard.

MDC2 and Generali RE lease 11,000 sqm custom facility to InPost at Park Kraków South

MDC2 and its partner, Generali Real Estate, have finalized a lease agreement with InPost for a 11,000 m² custom-built facility at MDC2 Park Kraków South. The build-to-suit (BTS) facility will be tailored exclusively to InPost’s needs, furthering the company’s growth in the Kraków region.

The development, owned by Generali Real Estate as part of its European logistics investment portfolio, is being handled by MDC2. The project reflects both companies’ commitment to sustainability, with the facility designed in line with environmental best practices and set to achieve a BREEAM New Construction certification of at least ‘Excellent.’

InPost, a leader in e-commerce delivery across Europe, is well known in Poland for its Paczkomat® machines, which form the backbone of its automated parcel system. Research shows that 94% of Polish consumers prefer using Paczkomat® for parcel collection, and 85% use it for shipping. With its success in Poland, InPost has expanded to nine European countries, operating over 73,000 out-of-home points, including more than 40,000 Paczkomat® devices.

The new 11,000 m² facility at MDC2 Park Kraków South will serve as a bespoke transshipment terminal, designed to enhance logistics operations and expedite parcel delivery in the Kraków region. Located in Skawina, south of Kraków, the site offers strategic access to key transport routes, including national road 44 and the A4 motorway.

“InPost handles around one million shipments annually in Poland, and a reliable logistics infrastructure is crucial to our success,” said Rafał Brzoska, CEO of InPost. “This new facility will support our commitment to operational efficiency and environmentally friendly practices.”

Generali Real Estate’s Asset Manager for CEE & Nordics, Miroslav Nutil, expressed excitement about the partnership, noting the continued collaboration with InPost that began in Gdańsk and now extends to Kraków.

Katarzyna Dudzik, Development Director at MDC2, emphasized that the agreement highlights InPost’s trust in their innovative solutions, reinforcing MDC2’s position in the rapidly growing e-commerce market in Poland.

The facility at MDC2 Park Kraków South is designed to minimize carbon footprint and maximize energy efficiency, aligning with the shared values of sustainability between InPost, MDC2, and Generali Real Estate.

AFI Europe Launches New Coworking Center in Vysočany

AFI Europe has officially opened a new coworking center, AFI HOME WORK, located on the ground floor of its AFI Home Kolbenova 1 residential development in the rapidly evolving AFI City district of Vysočany. Covering 250 square meters, this modern workspace is designed to serve local residents and professionals from the wider Prague 9 area, aiming to foster a vibrant business community.

“Our goal is to provide an inspiring environment where people can work, network, and share ideas. In addition to traditional workspaces, we’ve created informal zones that encourage collaboration over a cup of coffee,” said Kateřina Holická, AFI Europe’s asset manager. She noted that integrating coworking spaces within a residential project is a new concept in the Czech market, highlighting AFI Europe’s forward-thinking approach.

Designed by the renowned CCA Architects studio, the interior blends minimalism with industrial elements. The space features exposed ceilings, raw concrete walls, and modern furnishings, combining wood and metal for a sleek, stylish atmosphere. AFI HOME WORK offers 25 flexible workstations, a large meeting room, a fully equipped kitchen, a dining area, and a chill-out zone. The center also provides high-speed Wi-Fi, a multifunctional printer, and video conferencing capabilities.

Located near the Kolbenova metro station, AFI HOME WORK benefits from the district’s growing amenities, including restaurants, a laundromat, and a soon-to-open supermarket, fitness center, and bistro.

AFI City, the broader development project, includes the AFI City 1 office building, rental housing with 640 apartments, and 470 sold apartments for private ownership. The area also boasts a 7,500 square meter park, offering green space for relaxation and outdoor activities.

Czechs lower housing expectations amid economic challenges

More than a quarter of Czechs have reduced their housing demands due to rising energy prices, inflation, and interest rates, according to a recent survey by Generali Investments. The study, conducted in September, highlights how economic pressures have shifted housing priorities for many people, though the number of those making such concessions has decreased compared to last year.

According to Generali Investments, the rental housing market has changed significantly since 2019. Five years ago, tenants in Prague could rent a 65-square-meter apartment for the same price they would now pay for a 49-square-meter unit. The data, based on information from the Czech Statistical Office and Deloitte, show the long-term impact of economic instability.

Marek Bečička, Director of Real Assets at Generali Investments, noted that while the economic situation has slightly improved, conditions remain tough. “Energy prices, inflation, and interest rates are still not at pre-pandemic levels, but we’re seeing a positive trend. In 2023, a third of the population reduced their housing demands, but this year only a quarter did so,” Bečička said.

Energy costs remain a primary concern for nearly a third of respondents, though fewer people feel this pressure compared to last year. A tenth of Czechs are now considering downsizing to smaller homes due to energy costs. Inflation affects one-fifth of the population, and high interest rates are increasingly problematic, with more than 9% of respondents citing them as a major issue, up from 2023.

The survey also revealed rising housing costs. Nearly a third of respondents reported paying up to 10% more for housing than last year, with over 30% paying 10% to 25% more, and a tenth of Czechs seeing increases of up to 50%.

Rental prices in the Czech Republic increased by 3.4% in the second quarter of this year, with Prague seeing a 2.3% rise, bringing the average rent to CZK 408 per square meter per month. Meanwhile, mortgage rates fell slightly in early September, with the average rate dropping to 5.38%, according to Swiss Life Hypoindex.

The Generali Investments survey was conducted through Ipsos’s Instant Research application and included 1,050 respondents aged 18 to 65 from across the Czech Republic.

Source: Generali Investments

Mayors set to nominate new minister for regional development today

The leadership of the Mayors and Independents (STAN) will decide this afternoon on their nomination for the new Minister for Regional Development. The position became vacant following the dismissal of Ivan Bartoš (Pirates) on September 30, at the request of Prime Minister Petr Fiala (ODS). Bartoš was removed due to issues related to the digitization of the construction process.

Last week, the STAN leadership held a similar meeting to nominate their first vice-president, Lukáš Vlček, for the role of Minister of Industry and Trade. Vlček’s nomination comes as Jozef Síkel is expected to step down and assume the role of European Commissioner.

The Pirates criticized Bartoš’s dismissal, accusing Fiala of violating the coalition agreement, which led to the party’s vote to exit the government. The coordination of the digitization process has since been transferred to Minister of Transport Martin Kupka (ODS), while the Ministry of Regional Development is temporarily under the leadership of Labour Minister Marian Jurečka (KDU-ČSL).

Potential candidates for the role include current deputy Radim Sršeň, Karlovy Vary Governor Petr Kulhánek, Olomouc Governor Josef Suchánek, and MP Eliška Olšáková, who also chairs the Association of Local Authorities. The final nomination will be discussed by the STAN Bureau and the national committee in the Chamber of Deputies later today.

GN Poland leases over 2,000 sqm in Warsaw’s Saski Crescent

GN Poland, part of the global GN Group, has signed a lease for more than 2,000 sqm of office space in the recently refurbished Saski Crescent building in central Warsaw. The company’s new headquarters will span the entire third floor of the boutique office building, located at the intersection of Marszałkowska and Królewska streets. The move is scheduled for the end of this year, with Colliers advising GN Poland on the search, and CA Immo, the landlord, assisted by CBRE.

Saski Crescent, known for its energy efficiency and prime location, has undergone extensive renovations, adding new amenities like a gym and cyclist facilities while incorporating sustainable building management systems. The building uses recycled materials for 50% of its renovations and has received WELL pre-certification, confirming its commitment to occupant well-being and environmental impact. It also holds WiredScore Platinum certification and is seeking BREEAM certification.

Joanna Wiechowicz, Head of Service Delivery Centre at GN Poland, emphasized the importance of employee well-being and environmental responsibility in choosing the new location, noting that Saski Crescent met all of GN’s expectations. Dawid Wątorski, Senior Leasing Manager at CA Immo, highlighted the building’s appeal as one of Warsaw’s most prestigious office spaces, attracting tenants with its sustainability features.

Saski Crescent, offering 16,000 sqm of modern office space, continues to attract high-profile tenants. Recent deals include a global IT company leasing 6,000 sqm and DORACO occupying 1,000 sqm. Expansion of food and beverage options is also in the pipeline, following the opening of an Aroma bakery in the lobby.

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