Weekly CRE Market Commentary

Czech Capital Goes International as KKCG Buys London Office While EPP Locks in Record Retail Refinancing

A Czech investor's £291 million London office acquisition capped a week in which Czech capital's regional and international ambitions became impossible to ignore, while at home EPP secured a €324 million refinancing on its core Polish retail portfolio and NEPI Rockcastle confirmed a €126 million valuation uplift on the back of strong H1 operating performance.

Market Mood

KKCG Real Estate Group's acquisition of 1 St James's Square in London for £291 million, a West End office building currently occupied by BP and targeted for redevelopment into over 120,000 sqm of high-sustainability office space, marks a clear step in Czech capital's ambition to build a central London portfolio. This follows a summer in which Czech investors were confirmed to account for roughly €2 billion, or 36%, of all CEE commercial real estate transaction volume in H1 2026, alongside a doubling of domestic Czech investment volume in Q2 to approximately €1.02 billion, with residential assets taking the largest share at 38%. Czech capital is now demonstrably active on three fronts simultaneously: at home, across the wider CEE region, and now in Western Europe's most established gateway city.

Where Capital Is Moving

EPP, Poland's largest retail real estate asset manager, closed a €323.9 million refinancing of its core shopping centre portfolio, a five-year, non-amortising facility covering four prime assets in key Polish cities, a transaction lenders will read as a strong vote of confidence in the durability of Polish retail income. NEPI Rockcastle reinforced that confidence with H1 2026 results showing net operating income up 3.8% year-on-year to €318 million and a €126 million portfolio valuation uplift, prompting a further increase to full-year distributable earnings guidance. Henley Investment Management completed the sale of Galeria Pestka in Poznań, a 41,700 sqm convenience shopping centre anchored by Carrefour and MediaMarkt, to OPAL CENTERS, following a repositioning that pushed occupancy above 95% and annual footfall to 5.1 million, a clear demonstration that well-managed secondary-city retail remains highly transactable in the current market. CPI Romania committed €100 million to refurbishing Sun Plaza in Bucharest, bringing in Primark, Peek&Cloppenburg, and Reserved alongside its existing Auchan anchor.

Logistics leasing and development remained dense across Poland. REINO IO Logistics completed its approximately 27,000 sqm cross-dock facility in Piotrków Trybunalski, designed for automated sorting and BREEAM Excellent certified with rooftop photovoltaics. 7R began construction of a 9,700 sqm BTS parcel sorting facility in Bydgoszcz for an e-commerce logistics partner, targeting Q1 2027 completion, while Panattoni started the final phase of Panattoni Park Zgierz I near Łódź, adding 16,400 sqm to bring the total scheme above 29,000 sqm. Berner Polska signed for approximately 6,500 sqm at 7R Hub Nowa Huta in Kraków to relocate and optimise its chemical products supply chain. Chorus Research Engineering Distribution leased nearly 10,000 sqm at CTPark Bucharest North, with CTP customising the facility to include dedicated hazardous goods storage.

In residential, Resi4Rent opened a 620-unit build-to-rent scheme in Wrocław offering subscription-based furnished apartments, and Flora Development obtained its occupancy permit for the 213-unit Esy Floresy project in Warsaw's Mokotów district, incorporating photovoltaic systems and EV charging infrastructure.

CEE/SEE

BIG Poland relaunched the former Power Park Kielce as BIG Kielce, a 37,000 sqm GLA retail park repositioned as an active community destination following its acquisition earlier this year. STRABAG Property and Facility Services entered the Romanian market through the acquisition of Brenneka Install and Samivo Instal, two local building services companies, expanding STRABAG PFS's European footprint. Slovak commercial real estate investment reached €244 million across eight transactions in H1 2026, with foreign, predominantly Czech, capital accounting for 78% of the total and office attracting the largest share at 66%, led by the sale of The Mill office building in Bratislava. Catella, Nordkranen, and an international investor completed a strategic asset swap with Ikano Bolig in Copenhagen, exchanging the fully let 445-unit GreenPoint residential community in Herlev for a development site in Valby, an unusual but increasingly common structure for landlords seeking to rotate stabilised assets into new development pipeline.

Slovenia and Adriatic

Slovenia's real estate sector recorded the fastest gross salary growth of any industry in H1 2026, up 11.1% year-on-year, alongside construction, reflecting intensifying competition for skilled talent as the sector's activity accelerates. SURS data showed residential building permits issued in July 2026 were double the volume of the same month last year, a strong forward indicator for Slovenian housing supply. The Port of Koper confirmed several major infrastructure projects are now in full swing, aimed at expanding capacity and reinforcing its competitive position in the region, a necessary response given the Port of Rijeka's reported 66% surge in container traffic the previous week.

Outlook

KKCG's London acquisition and the broader €2 billion Czech outbound investment figure both point to a maturing pattern: Czech capital has moved decisively from being a regional CEE force to an international one, and other well-capitalised CEE investors may follow a similar trajectory into Western European gateway markets. Domestically, EPP's refinancing and NEPI Rockcastle's valuation uplift both confirm that Polish and CEE retail income is being priced with growing confidence by both lenders and public market investors. Watch for further secondary-city retail asset sales following the Galeria Pestka precedent, as repositioned convenience-anchored centres continue to prove highly liquid.

^Sources

<sup>EuropaProperty
- EuropaProperty — Polish Retail Market Rebounds as Retail Parks Drive New Supply — https://europaproperty.com/polish-retail-real-estate-market-rebounds-retail-parks-drive-new-supply-as-retail-sales-and-footfall-continue-to-grow/
- EuropaProperty — EBRD lends €120 million to support renewable energy in Romania — https://europaproperty.com/ebrd-lends-e120-million-to-support-renewable-energy-in-romania/
- EuropaProperty — My Oszmiańska: Bringing the 15-Minute City Concept to Warsaw's Targówek — https://europaproperty.com/my-oszmianska-bringing-the-15-minute-city-concept-to-warsaws-targowek/
- EuropaProperty — Catella and Nordkranen enter strategic asset swap with Ikano Bolig — https://europaproperty.com/catella-and-nordkranen-enter-strategic-asset-swap-with-ikano-bolig/
- EuropaProperty — BIG Kielce opens — https://europaproperty.com/big-kielce-opens/
- EuropaProperty — Construction completed on the REINO IO Piotrków BTS logistics centre — https://europaproperty.com/construction-completed-on-the-reino-io-piotrkow-bts-logistics-centre/
- EuropaProperty — Chorus leases nearly 10,000 sqm at CTPark Bucharest North — https://europaproperty.com/chorus-research-engineering-leases-nearly-10000-sqm-at-ctpark-bucharest-north/
- EuropaProperty — EPP closes €323.9 million refinancing of its core retail portfolio — https://europaproperty.com/epp-closes-e323-9-million-refinancing-of-its-core-retail-portfolio-2/
- EuropaProperty — NEPI ROCKCASTLE BUILDS ON MARKET LEADERSHIP WITH STRONG H1 2026 RESULTS — https://europaproperty.com/nepi-rockcastle-builds-on-market-leadership-with-strong-h1-2026-results/
- EuropaProperty — Skyliner II gains another tenant — https://europaproperty.com/skyliner-ii-gains-another-tenant/
- EuropaProperty — Flora Development completes residential project in Warsaw — https://europaproperty.com/flora-development-completes-residential-project-in-warsaw/
- EuropaProperty — Panattoni starts final phase of business park near Łódź — https://europaproperty.com/panattoni-starts-final-phase-of-business-park-near-lodz/</sup>

<sup>Europe-RE
- Europe-RE — Henley completes sale of Galeria Pestka shopping centre in Poznań — https://europe-re.com/henley-completes-sale-of-galeria-pestka-shopping-centre-in-pozna/74652</sup>

<sup>Property Forum
- Property Forum — Czech investors pour €2 billion into CEE property — https://www.property-forum.eu/news/czech-investors-pour-eur2-billion-into-cee-property/21928
- Property Forum — Czech commercial real estate investment doubles in Q2 2026 — https://www.property-forum.eu/news/czech-commercial-real-estate-investment-doubles-in-q2-2026/21927
- Property Forum — Czech investor acquires London office for £291 million — https://www.property-forum.eu/news/czech-investor-acquires-london-office-for-ps291-million/21950
- Property Forum — Henley IM sells Galeria Pestka in Poznań — https://www.property-forum.eu/news/henley-im-sells-galeria-pestka-in-poznan/21948
- Property Forum — €244 million in Slovak investment activity in H1 2026 — https://www.property-forum.eu/news/eur244-million-in-slovak-investment-activity-in-h1-2026/21940
- Property Forum — STRABAG PFS acquires Brenneka to enter Romania — https://www.property-forum.eu/news/strabag-pfs-acquires-brenneka-to-enter-romania/21936
- Property Forum — CTP leases 10,000 sqm to Chorus at CTPark Bucharest North — https://www.property-forum.eu/news/ctp-leases-10000-sqm-to-chorus-at-ctpark-bucharest-north/21938
- Property Forum — 7R starts BTS warehouse construction in Bydgoszcz — https://www.property-forum.eu/news/7r-starts-bts-warehouse-construction-in-bydgoszcz/21954
- Property Forum — CPI Romania adds new retailers to Sun Plaza — https://www.property-forum.eu/news/cpi-romania-adds-new-retailers-to-sun-plaza/21952
- Property Forum — Resi4Rent opens 620-unit build-to-rent scheme in Wrocław — https://www.property-forum.eu/news/resi4rent-opens-620-unit-build-to-rent-scheme-in-wroclaw/21932
- Property Forum — Berner Polska signs lease at 7R Hub Nowa Huta in Kraków — https://www.property-forum.eu/news/berner-polska-signs-lease-at-7r-hub-nowa-huta-in-krakow/21930
- Property Forum — BIG Poland relaunches retail park in Kielce — https://www.property-forum.eu/news/big-poland-relaunches-retail-park-in-kielce/21941</sup>

<sup>Finance.si
- Finance.si — Junija plače najbolj zrasle v nepremičninah in gradbeništvu — https://www.finance.si/topjob/junija-place-najbolj-zrasle-v-nepremicninah-in-gradbenistvu/a/9050331 — Author: Lana Dakić
- Finance.si — Surs: Julija predvidena gradnja dvakrat več stanovanj kot lani — https://www.finance.si/top-gradbenistvo/surs-julija-predvidena-gradnja-dvakrat-vec-stanovanj-kot-lani/a/9050306 — Author: Vasilij Krivec
- Finance.si — Luka Koper: največji infrastrukturni projekti v polnem teku — https://www.finance.si/logistika-%26-prevozi/luka-koper-najvecji-infrastrukturni-projekti-v-polnem-teku/a/9050302</sup>

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