White & Case, Schoenherr advise on €470M sale of logistics parks to Blackstone

TPG Real Estate has sold its logistics portfolio, CTRE, comprising ten strategically located parks in the Czech Republic and Slovakia, to Blackstone for €470 million. Initially launched in 2019 with a €90 million investment in partnership with local landlord Contera, CTRE has grown to approximately 500,000 square meters of logistics facilities.

White & Case advised on the transaction with a team led by Partners Petr Panek, Vaclav Kubr, and Jan Linda, alongside Local Partner Karel Petrzela, Counsels Magda Olysarova and Vladimir Ivanco, and Associates Barbora Vaculova and Katerina Hudeckova.

Schoenherr provided legal counsel with a team including Partners Vladimir Cizek, Sona Hekelova, and Michal Lucivjansky, supported by Counsels Otakar Fiala, Zuzana Hnatova, and Peter Devinsky, and a large group of attorneys and associates across their offices.

The deal underscores the growing importance of strategically located logistics assets in the region and highlights TPG Real Estate’s success in scaling its portfolio over the past five years.

Sebastian Flick named Head of CFB Funds and Investments at Commerz Real

As of December 1, 2024, Sebastian Flick has taken on the role of Global Head of CFB Funds, Structured Finance, and Investments at Commerz Real, the real assets subsidiary of Commerzbank. This division consolidates closed-end funds for private investors alongside various financing products, including real estate leasing, operator and leasing models, and participation models. Flick succeeds Martin Suchsland, who retired in autumn 2024 after an impressive 30-year career with Commerz Real.

Flick brings extensive experience in equity investment management and portfolio oversight for institutional investors. Prior to joining Commerz Real, he served at ARAG SE since 2012, where he held the position of Departmental Head of Alternative Investments & Real Estate. In this role, he managed investments in infrastructure, real estate, and private equity. Earlier in his career, Flick worked with Talanx Asset Management, HSBC Trinkaus, and the Cologne-based Kreissparkasse Köln. A graduate economist, Flick has established a reputation for his expertise in alternative and real estate investments.

At Commerz Real, Flick will oversee a diverse portfolio valued at approximately €7 billion, serving 70,000 investors. The portfolio includes investments in sectors such as shipping, aviation, solar parks, and wind farms, reflecting Commerz Real’s commitment to sustainable and diversified asset management.

Flick’s appointment signals a continuation of Commerz Real’s strategic focus on innovation and robust portfolio management, ensuring value creation for private and institutional investors alike.

Penta Real Estate unveils updated Medze project in Dúbravka

Penta Real Estate has presented a revised design for the Medze project in Dúbravka, Bratislava. The updated architectural concept, originally developed in 2020, emphasizes enhanced public spaces and increased greenery. This week, the company also submitted environmental impact assessment (EIA) documents for the next phase of the project. Construction of the first stage is expected to commence in the first half of 2026.

The updated project reflects adjustments made during consultations with city authorities regarding binding opinions for the first two stages. Penta Real Estate stated that the heights and placement of the buildings have been modified to integrate more green spaces and enhance public areas. The revisions include expanded playgrounds, workout zones, and relaxation areas, while paved areas have been reduced in favor of grass and park features.

The Medze development will be executed in three stages, situated in the northern section of the slope. It will introduce 23 above-ground structures ranging from two to 12 floors, primarily for residential use. Once zoning plan changes in the area are finalized, the project will deliver approximately 820 residential units, including apartments.

In addition to residential spaces, the development will feature amenities such as a kindergarten, commercial premises, and a central square with water features. More than 1,240 parking spaces are planned, with over 90% located underground. The first phase, set to begin in 2026, will include four residential buildings with seven to 11 floors.

The project’s subsequent phase will be located in the southern part of the area, at the border of the Karlova Ves and Dúbravka districts. Preparations for this stage included the acquisition and consolidation of land, paving the way for further development.

Penta Real Estate’s updated vision for the Medze project demonstrates its commitment to creating a vibrant, green, and community-focused residential area in Bratislava.

Source: Penta Real Estate and Trend

OECD criticizes Poland’s lack of progress on combating foreign bribery

The OECD Working Group on Bribery has expressed deep concerns over Poland’s failure to make meaningful progress in implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. At its December 2024 meeting, the Working Group urged Poland to urgently develop an action plan to address significant deficiencies, following an evaluation that found most of the recommendations made in 2022 remain unimplemented.

One of the primary issues raised is Poland’s lack of progress in ensuring prosecutorial and judicial independence, a requirement under Article 5 of the Convention. While a law was passed in July 2024 to ensure the majority of the National Council of Judiciary members are elected independently of executive and legislative influence, it has yet to take effect. The delay stems from a review by the Constitutional Court, initiated by the President of the Republic. Meanwhile, the Minister of Justice continues to serve as Prosecutor General, retaining considerable control over the Prosecutor’s Office and the judiciary. No measures have been introduced to curb executive influence in appointing, disciplining, or removing prosecutors. Additionally, the Minister of Justice retains the authority to disclose information on ongoing investigations for broadly defined reasons, further undermining judicial independence.

The Working Group also criticized Poland’s ineffective approach to corporate liability for foreign bribery, which requires the conviction of a natural person before corporate entities can be held accountable. This legal hurdle severely limits the application of corporate liability. Furthermore, the lack of a national strategy to combat foreign bribery and the Ministry of Foreign Affairs’ apparent disinterest in detecting or raising awareness of the issue were noted as significant shortcomings. Protections for whistleblowers under a recently enacted law were deemed inadequate, leaving those who report bribery vulnerable to retaliation without effective remedies.

Despite these criticisms, the Working Group acknowledged some positive steps. The Polish financial intelligence unit has fully implemented recommendations related to money laundering predicated on foreign bribery. Additionally, the Deputy Prosecutor General has issued guidelines to improve the investigation and prosecution of foreign bribery cases.

To address these concerns, the OECD Working Group has requested that Poland prepare an action plan outlining how it will implement priority recommendations. This marks an important escalation in the OECD’s monitoring process under its 4th Round of mutual evaluations. Poland’s action plan will be reviewed at the Working Group’s next plenary meeting in March 2025.

The Group’s call for action reflects growing frustration with Poland’s inability to address critical issues in combating foreign bribery. Failure to act could prompt the OECD to consider additional measures to ensure Poland’s compliance with the Convention.

Source: OECD

CA Immo sells Saski Point office building in central Warsaw

CA Immo has finalized the sale of the Saski Point office building in central Warsaw to an undisclosed buyer. While the transaction price remains confidential, the seller has revealed that it exceeded the property’s last reported book value. The 30-year-old multi-tenant building offers approximately 8,300 sqm of gross leasable area.

“The successful sale of Saski Point marks another milestone in the execution of our strategic capital rotation programme,” said Keegan Viscius, CEO of CA Immo. “Proceeds from this sale will be reinvested in our organic development pipeline, used to manage corporate liquidity, and potentially allocated to external investments if suitable opportunities arise.”

CA Immo acquired Saski Point in 2013 as part of a portfolio deal that included four other Warsaw office properties. The sale aligns with the company’s strategy to optimize its property portfolio by divesting assets that do not align with its core business focus in terms of asset class, location, building quality, age, or value-creation potential.

This transaction underscores CA Immo’s commitment to refining its portfolio to prioritize higher-value, sustainable assets while ensuring efficient capital reallocation.

CBRE and Greenberg Traurig, LLP served as advisors on the transaction.

ÚZSVM to hold eighth auction for Prague’s Broadway Palace in January

The Office for State Representation in Property Matters (ÚZSVM) will attempt once again to sell Prague’s Broadway Palace in an electronic auction this January. This marks the eighth attempt to auction the historic property, with the starting price now reduced by CZK 13 million to CZK 878 million, down from the previous auction in mid-September. The office announced the news in a press release, noting that while previous auctions had interested bidders who paid the required deposit, no bids were ultimately placed.

The decision to hold another auction comes after the current tenant failed to exercise its right of first refusal during previous rounds. The tenant will have another opportunity to match the highest bid in this auction.

The auction will run from January 22 to January 23, 2024. Participants must place a minimum bid equal to the starting price, with subsequent bids increasing by at least CZK 50,000. To qualify, interested bidders must pay a CZK 20 million deposit no later than one day before the auction begins.

Broadway Palace, a functionalist architectural gem from the 1930s, is located between Celetná and Na Příkopě streets, near Republic Square in central Prague. Designed by architects Bohumír Kozák and Antonín Černý, the complex consists of three interconnected buildings.

Originally constructed for Italian insurance companies, part of the property also housed apartments. In 1938, it gained a state-of-the-art cinema, now operated as the Broadway Theatre. The building later served administrative functions after modifications in the 1980s. Despite its prime location and architectural significance, the property has struggled to find a buyer.

ÚZSVM has been trying to sell the Broadway Palace since September 2021, offering it first to state institutions, none of which expressed interest. If sold at the current auction, the property could achieve the office’s highest sale to date, surpassing the CZK 790 million earned from a previous sale of premises at Republic Square.

Alongside the Broadway Palace, the ÚZSVM will also auction Štiřín Castle in Central Bohemia. Despite its historic value, the castle has similarly faced difficulties in finding a buyer. The asking price has been reduced from an initial CZK 3.3 billion to the current CZK 1.445 billion after three failed auction rounds.

Both auctions reflect the challenges of selling high-value, historically significant properties in today’s market, even as the government seeks to divest such assets.

Czech flat-rate tax advances for sole traders to increase in 2025

Monthly flat-rate tax advances for sole traders in the first income band will rise by CZK 1,218 to CZK 8,716 starting next year, the Financial Administration announced today. Advances for the second and third bands will remain unchanged at CZK 16,745 and CZK 27,139, respectively. Sole traders wishing to join, exit, or switch their tax band must submit their applications by January 10.

The increase in the first-band advance is attributed to higher contributions for health and pension insurance. Health insurance premiums will increase by CZK 175 to CZK 3,143 per month, while pension insurance premiums will rise by CZK 1,043 to CZK 5,473. The income tax component of the flat-rate payment remains unchanged at CZK 100. Advances must be paid by the 20th day of each month.

The flat-rate tax system, introduced to simplify tax payments for sole traders, allows non-VAT payers with annual business incomes of up to CZK 2 million to combine income tax, health insurance, and social insurance into a single payment. According to the Ministry of Finance, this system reduces bureaucratic burdens and minimizes the likelihood of tax inspections. As of January 2023, approximately 125,000 entrepreneurs were registered under this regime.

In 2023, the flat-rate tax system introduced income bands to accommodate variations in earnings among small entrepreneurs. Tradespeople in certain professions, such as IT, photography, law, or tax advisory, can move into higher bands if their annual income exceeds CZK 1 million or CZK 1.5 million.

Entrepreneurs looking to enter or adjust their flat-rate tax arrangements for 2024 must submit their requests by January 10. Changes may include switching tax bands if their actual income aligns better with a different category. Notifications must be submitted electronically by those required by law to use a data box. Others may file their notifications by post or in person at a tax office branch.

Entrepreneurs already enrolled in the flat-rate tax regime will be automatically re-enrolled for the coming year, ensuring a seamless transition.

Source: CTK

Czech Chamber approves two-year delay for State digitization amid opposition criticism

The Czech Chamber of Deputies has approved a proposal to postpone the full implementation of state digitization by two years, pushing the deadline to 2027. The government coalition’s motion, citing the need for more preparation time for authorities, has sparked criticism from opposition parties. The delay pertains to the Act on the Right of Citizens to Digital Services—the so-called Digital Constitution—originally scheduled to take effect in February 2025. The proposal will now head to the Senate for consideration before requiring the president’s signature.

Opposition parties, including ANO and the Pirates, have strongly opposed the delay. The Pirates, who were part of the government coalition until the fall, advocated for a one-year postponement instead. Meanwhile, ANO leaders labeled the delay as evidence of government inefficiency in delivering a project deemed critical.

ANO and SPD representatives have also raised concerns about the government’s approach, criticizing its decision to bundle the delay into amendments to the Electronic Communications Act, which was initially focused on telemarketing regulations. They argue that this legislative strategy undermines transparency. Both parties have indicated they may challenge the delay in the Constitutional Court.

Deputy Prime Minister Marian Jurečka (KDU-ČSL) defended the two-year postponement, citing risks of legal disputes if the original deadline was maintained. The proposal also includes a provision allowing authorities to opt out of specific digital tasks deemed inefficient or wasteful. According to Jurečka, some digital services listed in the catalog are rarely used, with certain agendas not utilized even once per year.

The Chamber also addressed other significant amendments tied to the Electronic Communications Act. These include:
• Telecommunications Disputes: The Czech Telecommunication Office will now handle all client disputes related to operator payments, previously split between the courts and the office.
• Telemarketing Regulations: The government initially sought a blanket ban on marketing via voice communication unless explicitly agreed upon by the recipient. However, this provision was removed following discussions in the Economic Committee.
• Signal Infrastructure: Amendments to the Nature and Landscape Protection Act aim to facilitate the construction of mobile signal antenna masts, particularly in remote or protected areas. Disputes remain over the environmental impact, with the Ministry of the Environment opposing the proposal due to potential harm to sensitive regions like plateaus and peat bogs.

In addition to the digitization delay, the Chamber approved measures to enhance protections for bank clients against fraud. ODS MP Jiří Havránek successfully introduced a proposal to improve cooperation between mobile network operators and financial institutions. The initiative aims to share information on fraudulent activities, minimizing financial losses and improving customer security.

The delays and legislative changes underscore the challenges of balancing public interest, technological advancements, and environmental concerns. While Industry Minister Lukáš Vlček (STAN) emphasized the importance of closing “white spots” in rural data coverage to combat depopulation, critics argue that environmental protection and timely digitization efforts should not be sidelined.

As the Senate deliberates the proposals, these measures will likely continue to be a point of contention in Czech politics.

Source: CTK
Photo: Deputy Prime Minister Marian Jurečka (KDU-ČSL)

Biedronka opens 24 new stores and modernizes 23 ahead of Christmas

As part of its pre-Christmas preparations, Biedronka has expanded its network with 24 new stores and completed the modernization of 23 existing outlets across Poland, the company announced.

Many of the new and revamped locations are situated outside major urban centers, reflecting Biedronka’s strategy to bring its services closer to local communities. Notable first-time store openings include locations in Pierzchnica and Zawoja in the Małopolska province, Żyrzyn in Lublin, and Oleszna in Silesia. Meanwhile, residents of cities such as Warsaw, Zielona Góra, and Chorzów can now shop in modernized facilities.

The newly opened stores feature an average sales area of 748 m², with modern layouts that include three traditional and four self-service checkout stations. Both the new and upgraded outlets incorporate energy-efficient technologies, such as LED lighting and eco-friendly refrigeration systems, in line with the company’s commitment to sustainability.

In addition to these developments, Biedronka has extended the opening hours of over 3,100 stores during the holiday rush. From December 20 to 23, these locations will remain open until 11:30 PM to accommodate increased customer demand.

At the end of the third quarter of 2024, Biedronka operated 3,659 outlets, up from 3,473 a year earlier, highlighting its steady growth in the Polish retail market.

Source: Biedronka and ISBnews

Marvipol Development secures Warsaw land for PLN 42 million for residential project

Marvipol Development has signed a contract with an unrelated third party for the acquisition of a 4,400 sqm plot of land in the Bielany district of Warsaw. The transaction, valued at PLN 42 million net, aligns with the company’s plans to develop a residential project on the site, the company announced.

Marvipol Development, a prominent Polish developer, operates primarily through special-purpose vehicles in two key segments: residential and warehouse construction. The company specializes in multi-family housing and warehouse projects, managing their construction, commercialization, and eventual sale.

This acquisition further reinforces Marvipol Development’s strategic focus on expanding its residential portfolio in prime urban locations. The company, established in 1996 as part of Marvipol S.A., assumed its independent development activities following a corporate division on December 1, 2017.

Source: Marvipol Development and ISBnews

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