PL

Poland CRE investment volume exceeds EUR 1.7 bln

Investment & finance
Cushman & Wakefield estimates that the commercial real estate investment volume in Poland for H1 2024 was EUR 1.76 bln, representing an almost 80 pct increase compared to the same period in 2023. The investment market is experiencing a revival in the activity of investment funds, including Polish investors, with this year’s total investment volume likely to hit EUR 4 bln.

The commercial property market in Poland experienced a notable rebound in H1 2024, with more than EUR 1.7 bln in investment transactions, representing an increase of nearly 80 pct year-on-year and of over 50 pct compared to the same period in 2022. This strong performance is attributed to lower interest rates and improving economic sentiment which is an additional incentive for buyers to invest in real estate. It is worth noting that the number of active investment funds is growing and the sector is also seeing transactions closed by domestic investors. Polish market players are filling the niche of lower-value deals by investing not only in developer projects but also in standing commercial buildings. Looking ahead, we expect these positive trends to continue.
Krzysztof Misiak, head of Cushman & Wakefield Poland

UK investors were the main driver of investment activity in H1 2024, raising their market share to 35 pct - mostly through a single big-ticket transaction. The Polish market continued to see strong demand coming from Czech investors (19 pct), as well as domestic and Scandinavian market players expanding their presence in Poland - each group accounted for approx. 9 pct of the total investment volume. Transactions finalized by Polish investors included the acquisition of the Rzymowskiego 34 office building in Warsaw by A&A Holding on which Cushman & Wakefield advised and the purchase of Warta Tower by Cornerstone IM.

Although this year continues to be dominated by value-add transactions, the Polish market is seeing the first core+ deals whose share in investment volumes is likely to increase on the back of more stable interest rates, which in turn will attract major cross-border players. This year’s total investment volume is expected to reach EUR 4 bln, nearly double 2023’s figure and accounting for 75 pct of the five-year average.
Paweł Partyka, head of Capital Markets Poland, Cushman & Wakefield

Offices are the top performer

Cushman & Wakefield estimates that the office investment volume exceeded EUR 800 mln at the end of June 2024.

This means that office assets recorded a fourfold increase in transaction values year-on-year, with the strongest buyer activity reported in Q2. The growing number of promising, concrete negotiations between sellers and buyers bodes well for the future. This confirms the strong fundamentals of the Polish office market, which leads the way in CEE in terms of office stock, product quality and diversity. The coming months are likely to see an increase in the number of office transactions as interest rates and yields have stabilized at lower expected levels. This appears to be the last call to compete for trophy assets before the largest investors are back on the market.
Marcin Kocerba, partner, Capital Markets, Cushman & Wakefield Poland

Skanska’s sale of Studio B to Stena Real Estate AB has been the first prime/core transaction in Warsaw since 2022. Regional city office buildings also attracted buyers’ attention in the past six months. For example, Skanska sold Nowy Rynek E in Poznań to Eastnine AB. In Gdansk, Greenstone AM acquired a majority stake in FORMAT from Torus, while in Szczecin it sold Lastadia Office to a French investment fund managed by Arkéa.

Retail assets are back in demand

According to Cushman & Wakefield’s data, the retail transaction volume totalled nearly EUR 0.5 bln.

Although the retail investment volume for H1 2024 has already exceeded last year’s total, the best is still to come. From our observations, the retail sector is very likely to dominate this year’s investment volumes on a par with offices. We are seeing strong investor interest in retail assets across Europe, suggesting that retail is back in favour for good and is increasingly being seen as an alternative to industrial or office assets in investment fund strategies.
Paweł Partyka

Stabilization on the industrial market

Transaction volume on the industrial market in H1 2024 totalled EUR 294 mln, posting a 33 pct fall year-on-year. Interestingly, this sector in particular is attracting repeat investors and new market players hunting for opportunities, notes Cushman & Wakefield.

Strong demand for industrial assets which as yet has not translated into transactional activity bodes well for a quick return to high trading volumes in 2025. The coming months are likely to see transactions finalized by buyers who have long been absent from Poland or are new market entrants. The main drivers of investor interest in Polish warehouses include their high quality. According to Cushman & Wakefield, Poland’s total industrial stock is approaching 35 mln sqm, of which as much as 40 pct will be in projects completed in 2021-2024, signifying that the Polish market contains mainly modern and sustainable assets that are particularly sought after by investors.
Paweł Partyka

The market is waiting for REITs

It is expected that the introduction of dividend-paying REITs (Real Estate Investment Trusts) which are very popular in mature markets such as the US, Canada, the UK, France and Spain could additionally boost commercial property investment activity and lead to an increased presence of Polish capital. Such trusts are among key real estate investment vehicles, with their market capitalization totalling more than USD 600 bln in the US, EUR 57 bln in the UK and nearly EUR 50 bln in France.

REITs have so far been considered mainly in connection with residential market transactions which amounted to EUR 130 mlnn in H1 2024, more than last year’s total, reveals data from Cushman & Wakefield. However, Mira Kantor-Pikus notes that REITs should be a diversified investment vehicle allowing for investing in various asset classes. Fortunately, this view is shared by Polish lawmakers.

Draft legislation on Polish REITs provides for an investment vehicle in the form of a publicly listed joint-stock company dubbed SINN (a Company Investing In Real Estate Leasing) and expected to invest in rental apartments, student houses, care homes, office, industrial and retail buildings. Such a company will be exempt from tax on rental income and property sales, with a one-off preferential 10 pct tax rate applicable to dividend payments. It is, however, required to generate 90 pct of income from property rental or a sale of a property leased for 12 months or longer.
Mira Kantor-Pikus, MRICS, EMBA, head of Equity, Debt & Alternative Investments, Cushman & Wakefield

According to the expert of Cushman & Wakefield, REITs will provide an alternative way of long-term saving and investment for individual investors compared to bank deposits, treasury bonds and small-scale housing investments, as well as an interesting instrument for pension funds and insurers. Key to the success of REITs will be the participation of experienced investment market players: investment funds, developers and real estate advisers, as well as making manager fees dependent on the results important to shareholders, i.e. generated income.

Latest news

Warehouse & industrial

Poland CTPark Warsaw West is ready

schedule 04 October 2024
Opr./edited by ANZ

CTP has obtained an occupancy permit for buildings WARS02 and WARS05, with a total area of 110,000 sqm. The facilities are part of the CTPark Warsaw West complex. The space will be occupied by Raben Group. The location in Wiskitki, near Warsaw, will be its 36th branch in the country.

Warehouse & industrial

POLAND InPost in MDC2 Kraków South

schedule 03 October 2024
Opr./edited by NN

Polish parcel dispatch company InPost has leased 11,000 sqm at MDC2 Park Kraków South. The BTS project is to be built on a site prepared exclusively for the tenant.

Investment & finance

Poland The Future comes to Galardia

schedule 03 October 2024
Opr./edited by JC

Starachowice’s Galardia shopping center, developed from a greenfield by Stage Capital and Sierra Balmain, has a new owner – Future Estate. Opened in October 2014, the facility offers 18,000 sqm GLA.

Office & mixed-use development

Poland Maximum occupancy at Forest

schedule 03 October 2024
Opr./edited by JC

HB Reavis has signed seven-year lease agreements with Transition Technologies and other companies, which will occupy nearly 1,000 sqm of office space in the Forest campus in Warsaw. The building is now fully let.

Office & mixed-use development

Poland Saski Crescent sounds great

schedule 03 October 2024
Opr./edited by JC

GN Poland has leased more than 2,000 sqm of office space in the Saski Crescent building in Warsaw. The company is part of the GN Group, a Danish provider of intelligent audio, video, gaming solutions, and hearing systems.

Residential

SLOVAKIA Metropolis life in Bratislava

schedule 02 October 2024
Opr./edited by NN

Czech property group Mint is finalising the construction of its premium Metropolis residential project in Bratislava, which will comprise 298 luxury apartments.

Interior design

POLAND Grainy effect for Viterra

schedule 02 October 2024
Opr./edited by NN

Viterra has moved into its ​​new 1,500 sqm offices in Olivia Prime, part of the Olivia Centre business complex in Gdańsk. The Design Anatomy studio is responsible for the design of the space.

Warehouse & industrial

Poland GLP is expanding in Silesia

schedule 02 October 2024
Opr./edited by JC

GLP has commenced construction of its second logistics centre in Gliwice. The facility will ultimately offer 57,000 sqm of warehouse and production space, located adjacent to the Katowice Special Economic Zone.

Office & mixed-use development

Poland Charities move into Diuna

schedule 02 October 2024
Opr./edited by JC

Syrena Real Estate, managing Diuna office complex in Warsaw’s Służewiec district, has made spaces available free of charge for statutory activities of Unicef Poland and the Wiosna Association. Both organisations have launched their activities and are running initiatives.

Warehouse & industrial

Poland E-commerce stays with Hillwood

schedule 02 October 2024
Opr./edited by ANZ

Hillwood is extending its cooperation with an American e-commerce giant in Łódź Górna. The tenant has extended its lease agreement for more than 36,000 sqm of warehouse space and 2,000 sqm for offices at Hillwood's Łódź Górna logistics centre. 

Investment & finance

Germany Garbe and Logicenters acquire former airbase

schedule 01 October 2024
Opr./edited by ANZ

Garbe and its joint venture partner Logicenters, Nrep's development and management platform for logistics properties, have acquired a 20,000 sqm plot of land. A logistics centre with a total area of around 11,600 sqm is to be built on this site. Construction is scheduled to begin in Q2 2025, with an investment volume of around EUR 17 mln.

Office & mixed-use development

Poland Tenants feel good at Metropolitan

schedule 01 October 2024
Opr./edited by ANZ

New leases and extensions have been signed for a total of 18,000 sqm in the Metropolitan Warsaw building. Companies such as HP and LCP Group have decided to continue their operations in the building.

Office & mixed-use development

POLAND PIB takes 1.2k in West 4 Business

schedule 01 October 2024
Opr./edited by NN

Insurance brokerage PIB Group is to occupy 1,200 sqm of office space in the West 4 Business Hub in Wrocław.

Residential

Poland White Stone Development and Nrep join forces

schedule 01 October 2024
Opr./edited by ANZ

White Stone Development, a Polish developer active in the residential and commercial market, has announced the signing of key agreements for a new project. A PRS development, commissioned by Nrep, which is investing through the NSF V fund, will be built in Warsaw's Bielany district.

Office & mixed-use development

Poland Santander takes the top of the tower

schedule 30 September 2024
Opr./edited by ANZ

Santander Bank Polska is to move into 25,500 sqm of The Bridge skyscraper, which is under construction in Warsaw's Wola business district, in the largest leasing transaction on the Polish office market since 2022.

Eurobuild CEE

Poland The October issue of Eurobuild!

schedule 30 September 2024
Opr./edited by ANZ

Here it is at last! The latest issue of Eurobuild is out fresh from the printers, and in it, as always, there's plenty of market news, expert opinions and information about personnel changes.

Investment & finance

POLAND Arete enters Poland

schedule 30 September 2024
Opr./edited by NN

Czech asset manager Arete Investment Group has entered the Polish market with the acquisition from Kajima Poland and Panattoni of a 65,000 sqm warehousing park in Zgorzelec in Lower Silesia.

Warehouse & industrial

Poland DB Schenker to move into Rawicz

schedule 30 September 2024
Opr./edited by ANZ

DB Schenker has leased more than 17,000 sqm at the Hillwood Rawicz warehouse centre. The logistics operator will service a customer producing optical products and sports accessories in its new space.

Investment & finance

Poland Nepi Rockcastle buys Magnolia Park 

schedule 30 September 2024
Opr./edited by ANZ

Nepi Rockcastle has acquired the 100,000 sqm Magnolia Park shopping centre in Wrocław from Union Investment in an off-market transaction. The sale price amounts to EUR 373 mln. Union Investment acquired Magnolia Park in 2017 for the portfolio of the UniImmo: Europa open-ended real estate fund.

Infrastructure

POLAND Ghelamco gets go-ahead for Gdańska

schedule 27 September 2024
Opr./edited by NN

Ghelamco has renewed its partnership with Polish railway operator PKP SA and its real estate division Xcity Investment related to the redevelopment of the Warszawa Gdańska train station in Warsaw.

Latest in Investment & finance

schedule 03 October 2024

The Future comes to Galardia

Starachowice’s Galardia shopping center, developed from a greenfield by Stage Capital and Sierra Balmain, has a new owner – Future Estate. Opened in October 2014, the facility offers 18,000 sqm GLA.

schedule 01 October 2024

Garbe and Logicenters acquire former airbase

Garbe and its joint venture partner Logicenters, Nrep's development and management platform for logistics properties, have acquired a 20,000 sqm plot of land. A logistics centre with a total area of around 11,600 sqm is to be built on this site. Construction is scheduled to begin in Q2 2025, with an investment volume of around EUR 17 mln.

schedule 30 September 2024

Arete enters Poland

Czech asset manager Arete Investment Group has entered the Polish market with the acquisition from Kajima Poland and Panattoni of a 65,000 sqm warehousing park in Zgorzelec in Lower Silesia.

schedule 30 September 2024

Nepi Rockcastle buys Magnolia Park 

Nepi Rockcastle has acquired the 100,000 sqm Magnolia Park shopping centre in Wrocław from Union Investment in an off-market transaction. The sale price amounts to EUR 373 mln. Union Investment acquired Magnolia Park in 2017 for the portfolio of the UniImmo: Europa open-ended real estate fund.

schedule 25 September 2024

P3 issues €500m green bond

Prague-based warehouse developer P3 Group has issued a 7.6-year EUR 500 mln Green Bond. With this, P3 will have signed over EUR 6 bln in new debt since the implementation of its most recent funding strategy in December 2021.

schedule 25 September 2024

€50m loan for Skyliner II

Karimpol Polska has secured EUR 50 mln in financing from Bank Pekao for the second phase of the Skyliner II development on Rondo Daszyńskiego in Warsaw. The bank also financed the construction of the first tower of the complex.

schedule 25 September 2024

ECE capital injection

ECE Real Estate Partners is expanding its investment activities and has raised further circa EUR 100 mln of capital for its ECE Progressive Income Growth Fund that invests in high quality shopping centres in Europe and holds a portfolio of seven centres with a total market value of more than EUR 2.2 bln.

schedule 24 September 2024

Panattoni launches a logistics income fund

Panattoni has launched a pan-European fund that will invest in modern, sustainable, income-producing logistics properties. The Panattoni Income Fund is domiciled in Luxembourg with an open-ended, evergreen structure.

schedule 19 September 2024

Another Smart Park sold

Smart Park Poland has sold a retail park in Syców (Dolnośląskie Voivodeship) to the Saller Group. The area of the facility is 8,000 sqm.

schedule 17 September 2024

Nepi set to buy Magnolia

Nepi Rockcastle is in negotiations to acquire the 100,000 sqm gla Magnolia Park shopping centre in Wrocław from Union Investment Real Estate.

schedule 12 September 2024

Citylink sells Łódź site to DSV

CL Property, a Polish developer specialising in multi-functional industrial and logistics space, has announced a transaction with DSV for the Citylink Łódź project. A new DSV logistics centre will be built on the 5.7-ha property located on ul. Zakładowa.

schedule 12 September 2024

Upturn in offices and retail sector

According to JLL, the Polish investment market saw a significant increase in activity in H1 2024. Despite continuing challenges related to the cost of capital, a return of large transactions was recorded, suggesting a potential end to the slowdown phase.

schedule 11 September 2024

Greykite debuts in Poland

European Real Estate Fund has commenced its deployment programme with the acquisition of a logistics portfolio in Poland. Three multi-tenanted properties will form the initial investment in a EUR 300 million joint venture with White Star Real Estate.

schedule 05 September 2024

Garbe buys huge Lower Saxony brownfield

Garbe, in a joint venture with a fund managed by BlackRock, has acquired a brownfield site of almost 200,000 sqm in Salzgitter, Lower Saxony. The joint venture wants to create large-scale logistics on the site. The construction of the property with a total floor area of 70,000 sqm is scheduled to start in Q1 2025 and to be completed in 2026.

schedule 03 September 2024

KGAL goes shopping in Vienna

KGAL has acquired the ViE office building in the Austrian capital with a total rental area of 14,100 sqm for one of its property funds. The seller is CA Immobilien Anlagen AG. The building in a central location in Vienna is fully let.

schedule 02 September 2024

Green transition in Berlin

Empira Group has successfully completed the acquisition of six multi-family buildings as well as residential and commercial properties in the Neukölln, Kreuzberg and Wedding districts of Berlin. The purchase encompasses around 400 residential and commercial units.

schedule 30 August 2024

CTP grows in Pomerania

CTP has purchased a 140,000 sqm plot of land located within the Pomeranian Investment Centre - an industrial park located in the vicinity of the largest container terminal on the Baltic Sea. The land acquired from the Gdańsk Economic Development Agency will be used to construct the next stage of the CTPark Gdańsk Port industrial and logistics complex.

schedule 29 August 2024

Panattoni borrows from Santander

Panattoni has been issued financing for the construction of City Logistics Warsaw Airport IV. The EUR 17.25 mln loan was granted by Santander Bank Polska.

schedule 22 August 2024

EREF buys BIG in Kraków

Eika Real Estate Fund has acquired the BIG office in Poland, in the central part of Kraków, which is let to State Street Bank. The fund plans to further expand its investments in logistics, offices and retail parks in Poland.

schedule 22 August 2024

BTS Warsaw West in new hands

Logistics platform Trademarc has sold a warehouse in Teresin, near Warsaw. The area of the BTS facility is almost 37,600 sqm.

Edition 10 (292) September 2024

Latest comments

Categories