PL

Poland Upturn in offices and retail sector

Investment & finance
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.

The increasing number of investors and the stabilisation of financial indicators are evidence of the growing level of interest and the positive outlook for the Polish real estate sector. The country's investment market achieved its highest quarterly performance since Q4 2022. Investment volumes reached almost EUR 1.7 bln in H1 2024, a 91 pct increase compared to H1 2023.

The leading market sectors in H1 2024 were offices and retail, mainly due to large portfolio transactions. The number and value of transactions - in both the office and retail sectors - exceeded the total value achieved in H1 2023 as a whole. The warehouse sector, which was the most active sector last year, fell to third place. With lower inflation expectations and the start of the interest rate cut cycle by the European Central Bank, businesses are experiencing fewer macroeconomic challenges. These factors are contributing to the stabilisation of yields and improved investor sentiment and potential further reductions in funding costs.

In H1 2024, the office sector saw a significant increase in investment activity, with a total volume of 22 transactions amounting to around EUR 800 mln. This amount is significantly higher than the EUR 200 mln recorded in the same period of 2023. This increase was due not only to the completion of large transactions, such as the sale of CPI Property Group's property portfolio, but also to renewed interest in regional cities. For the first time since 2022, prime office transactions were recorded outside of Warsaw. Key ones included the sale of Nowy Rynek E in Poznań and the acquisition of the Format building in Gdańsk. These transactions confirm that high-quality office projects in regional cities continue to find buyers.

The beginning of 2024 brought a revival in the office market, attracting the attention of an increasing number of investors. New sources of capital are also appearing that until now would not have been active in Poland, the best example being Sona Asset Management. As in other Western European countries, we are seeing a slow stabilisation of yields, which at the end of June were around 6 pct for Warsaw and 7 pct for Kraków.
Marcin Sulewski, head of Office Investment, JLL

The retail investment market was characterised by a significant recovery in H1 2024, with transaction volumes increasing by 149 pct compared to the first six months of the previous year. Such a rebound underlines the growing attractiveness of the sector, evidenced by significant transactions such as the EUR 285 mln sale of six retail properties to new Czech investor Star Capital Finance. According to JLL experts, the current situation offers promising prospects for the retail sector in the future.

Despite the lack of prime transactions in the retail segment in Warsaw, we can see that yields for prime shopping centres were around 6.5 pct in Q2 2024, while yields for prime retail parks were around 7.25 pct.
Agnieszka Kołat, head of Retail Investment, JLL

The industrial and logistics sector continues to be the focus of investor interest, despite a decline in its share of total investment volume compared to last year. The reported slowdown in 2023, driven by rising financing costs and reduced levels of market competition, has shifted the focus towards more strategically positioned, higher quality assets. With the sector expecting a sharp rebound thanks to strong economic growth, the current market dynamics have led to lower average deal values and an increased focus on asset quality, particularly in relation to ESG compliance.

Despite a lower increase in prime bond yields due to lower interest rate volatility, there is still no clear - supported by high-value deals - evidence of a recovery. By the end of June 2024, the yield for prime warehouse properties with five-year leases was estimated at around 6.75 pct, and for prime projects in Warsaw at around 6.5 pct.
Sławomir Jędrzejewski, head of Industrial Investment, JLL

Latest news

Office & mixed-use development

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schedule 11 October 2024
Opr./edited by NN

Varso 46 is soon to open on the 46th floor of Varso Tower, providing event space with a view of the Warsaw panorama of Warsaw, including the neighbouring Palace of Culture and Science.

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schedule 07 October 2024
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Contemporary cities are grappling with the challenge of fostering dynamic growth while alleviating environmental pressures. Traditional infrastructure expansion often requires the development of greenfields, with adverse impacts on both local ecosystems and communities. A sustainable alternative is to revitalise brownfield urban sites, as exemplified by City Point Targówek, a project led by Peakside Capital Advisors.

Investment & finance

POLAND Panattoni sells Warsaw park

schedule 11 October 2024
Opr./edited by NN

Panattoni has sold the 39,000 sqm City Logistics Warsaw IV logistics park to an undisclosed international real estate investor for EUR 53.5 mln.

Investment & finance

Poland Big moves in the hotel sector

schedule 11 October 2024
Opr./edited by JC

Accor has sold the Mercure Posejdon Gdańsk and an Ibis hotel in Kraków for an undisclosed sum but that could amount to over PLN 500 mln. But properties are to be repurposed.

Investment & finance

Poland MLP closes green notes offering

schedule 10 October 2024
Opr./edited by JC

MLP Group has successfully closed its debut senior green notes offering, worth EUR 300 mln (approx. PLN 1.3 bln). Investor demand far exceeded expectations, resulting in the offering being multiple times oversubscribed.

Investment & finance

Romania FDI stock increase in construction and real estate

schedule 10 October 2024
Opr./edited by ANZ

According to data from the National Bank of Romania analyzed by the Cushman & Wakefield Echinox, the real estate and construction sector became the second largest recipient of foreign capital in Romania, after industry. The sector attracted approx. EUR 2.2 bln of foreign direct investments in 2023, as the share of this economic activity in the overall FDI stock stood at 17.5 pct at the end of 2023.

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schedule 10 October 2024
Opr./edited by ANZ

We are launching a series of short recordings from Expo Real 2024! Featuring forecasts, assessments, comments. Take the time to listen!

Office & mixed-use development

Poland State Street Bank stays in Alchemia

schedule 09 October 2024
Opr./edited by ANZ

PHN has extended its lease agreement for over 10,500 sqm with State Street Bank, the key tenant of the Titanium tower in the Alchemia office complex in Gdańsk.

Investment & finance

Poland Park Szczecin VI gets green financing

schedule 09 October 2024
Opr./edited by ANZ

Accolade has secured EUR 29.5 mln net financing from BNP Paribas Bank Polska for the development of Park Szczecin VI industrial park, located in the Dunikowo Special Economic Zone. The facility will have an area of over 54,000 sqm. 

Office & mixed-use development

Poland Deloitte chooses Hi Piotrkowska

schedule 09 October 2024
Opr./edited by ANZ

Deloitte has leased over 900 sqm in the modern Hi Piotrkowska office complex in Łódź, a facility managed by Master Management Group.

ESG

Poland Environmental awareness in logistics is growing

schedule 08 October 2024
Opr./edited by ANZ

Panattoni has again partnered with law firm HFW and Pledge and Analytiqa to publish the 3rd edition of the 2024 European Logistics Sustainability Report. The results show significant progress in efforts to reduce the sector's carbon footprint.

Office & mixed-use development

Poland Polkomtel chooses GTC

schedule 08 October 2024
Opr./edited by ANZ

Polkomtel, a telecommunications company that is part of the Polsat Plus Group, will move into the Sterlinga Business Center office building, managed by GTC, in Łódź in December. The company will occupy an area of over 3,000 sqm.

Office & mixed-use development

Poland Tezeusz has chosen Galileo

schedule 08 October 2024
Opr./edited by JC

Antykwariat i Księgarnia Tezeusz, a company operating in Poland's second-hand book market, has leased 470 sqm in Galileo, an office building within GTC’s Korona complex in Kraków.

Residential

Poland Profbud builds with Robert Lewandowski

schedule 08 October 2024
Opr./edited by ANZ

Profbud will develop the City of Polish Olympic Champions. Robert Lewandowski is a shareholder, as well as a content partner of the investment, which will be built on the outskirts of Warsaw, in the Lesznowola municipality.

Office & mixed-use development

Poland Kruk has moved into B10

schedule 07 October 2024
Opr./edited by JC

The Kruk Company, operating in the debt management market, has leased 6,000 sqm of space in the B10 office-hotel complex in Wrocław, which is owned by Vastint Poland.

Residential

Poland Develia expands into student housing

schedule 07 October 2024
Opr./edited by JC

Develia has signed a letter of intent with Innova Capital and Solida Capital to develop student housing through an investment fund.

Warehouse & industrial

Poland SIG is staying with Prologis

schedule 07 October 2024
Opr./edited by JC

SIG, a supplier of construction products, has renewed its lease for 4,400 sqm of warehouse and office space in Prologis Park Wrocław.

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 Future comes to Galardia

schedule 03 October 2024
Opr./edited by JC

The Galardia shopping centre in Starachowice has been acquired by Future Estate from London-based Stage Capital. It was opened in October 2014 and comprises 18,000 sqm gla.

Latest in Investment & finance

schedule 11 October 2024

Panattoni sells Warsaw park

Panattoni has sold the 39,000 sqm City Logistics Warsaw IV logistics park to an undisclosed international real estate investor for EUR 53.5 mln.

schedule 11 October 2024

Big moves in the hotel sector

Accor has sold the Mercure Posejdon Gdańsk and an Ibis hotel in Kraków for an undisclosed sum but that could amount to over PLN 500 mln. But properties are to be repurposed.

schedule 10 October 2024

MLP closes green notes offering

MLP Group has successfully closed its debut senior green notes offering, worth EUR 300 mln (approx. PLN 1.3 bln). Investor demand far exceeded expectations, resulting in the offering being multiple times oversubscribed.

schedule 10 October 2024

FDI stock increase in construction and real estate

According to data from the National Bank of Romania analyzed by the Cushman & Wakefield Echinox, the real estate and construction sector became the second largest recipient of foreign capital in Romania, after industry. The sector attracted approx. EUR 2.2 bln of foreign direct investments in 2023, as the share of this economic activity in the overall FDI stock stood at 17.5 pct at the end of 2023.

schedule 09 October 2024

Park Szczecin VI gets green financing

Accolade has secured EUR 29.5 mln net financing from BNP Paribas Bank Polska for the development of Park Szczecin VI industrial park, located in the Dunikowo Special Economic Zone. The facility will have an area of over 54,000 sqm. 

schedule 03 October 2024

Future comes to Galardia

The Galardia shopping centre in Starachowice has been acquired by Future Estate from London-based Stage Capital. It was opened in October 2014 and comprises 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.

Edition 10 (292) September 2024

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