ARTICLES LABELLED WITH TAG Croatia

It’s at last becoming possible to assess the consequences for Croatia’s construction sector of the country’s July 2020 elections. Jockeying for governmental positions, COVID-19- and tourism-season-related priorities and other pressing matters prevented the new Croatian Democratic Union (HDZ) led government from moving on its larger agenda until recently. Now, though, the political picture, and the impact of the elections on Croatia’s construction sector, is getting clearer, according to a report by the Eastern European Construction Forecasting Association.

CA Immo has signed and closed the sale of the Zagreb Tower office building to Austrian property company S Immo AG at a 5% premium to H1 2020 book value.

Supernova Group has opened its fifteenth shopping centre in Croatia in the town of Požega, following an investment of €16 million. The 11,000 sqm retail park includes 16 stores and a restaurant.

The ongoing COVID-19 outbreak seems to be having a severely negative impact on market sentiment across the CEE region, according to the latest RICS Commercial Property Monitor. Q1 2020 figures show that both rental and capital value expectations have been downgraded across the region with retail expected to see the sharpest decline and industrial proving to be the most resilient asset class.

The construction industry seems to have been relatively less affected than some other industries (like tourism) as most large projects continue during the lockdown measures across the region. The Eastern European Construction Forecasting Association has published a COVID-19 update on the construction sectors of Bulgaria, Croatia and Slovenia.

Erste Bank Group anticipates an economic slowdown for 2020 in most CEE countries due to the coronavirus situation. The bank’s report mentions a negative scenario as well, which would result in a massive recession in the region.

South African investor Tower has entered into an agreement to sell the Vukovarska retail property in Zagreb, Croatia at an 11% premium to its book value.

PPHE Hotel Group announced its plans to develop a new city centre hotel in Zagreb, Croatia, through its subsidiary Arena Hospitality Group d.d.

Southeast Europe‘s real estate market is growing but most markets in the region have trouble attracting foreign investors. To make real estate investments in SEE more attractive, it is necessary to reduce investor risk by implementing legal, tax and public administration reforms and reducing corruption, according to the panellists at Balkans Property Forum 2019, which was organized for the third time in Belgrade by Property Forum and RICS. The conference was visited by nearly 200 real estate professionals from Serbia and other countries in the Balkans region.

Erste&Steiermärkische Bank is providing financing for the construction of GTC’s Matrix Office Park in Zagreb, a project consisting of two highly-efficient buildings, designed and constructed in line with LEED Platinum certification for green construction. Divjak, Topic & Bahtijarevic’s Banking and Finance team has closed the financing transaction for its long-standing client, GTC.