Liquidity constraints, evolving capital structures and growing ESG scrutiny are redefining how investors operate across CEE, according to Wolf Theiss Co-Managing Partner Tomasz Stasiak. In an interview with Property Forum, he highlights a more selective approach to distressed assets, the rising role of local capital and the increasing importance of operational and regulatory considerations in shaping investment decisions.
How are investors approaching distressed assets in 2026?
Investors are highly selective with distressed assets, focusing on properties with solid fundamentals that are either under temporary financing pressure or offer clear upside through repositioning.
Do you expect sale‑and‑leaseback structures to become popular?
Liquidity across the region remains constrained, making sale‑and‑leaseback structures less viable in financially unstable market conditions.
What about recapitalisations and portfolio disposals?
As a result of the liquidity issues, major investors prefer recapitalisations and joint‑venture structures relying on tested operational partners, allowing investors to manage risk while retaining strategic control.
Portfolio disposals, particularly in logistics and retail, continue to attract long-term investors, although pricing increasingly reflects capex requirements, lease quality and long‑term income sustainability.
What is driving growing investor interest in PRS and PBSA, and how sustainable is it in CEE?
PRS and PBSA, still relatively young asset classes in CEE, are driven by internal migration, the growth of main metropolises and rising housing costs. These trends mirror broader European patterns and are unlikely to reverse soon. However, investors must carefully manage currency exposure and increasing regulatory and operational complexity. Nevertheless, CEE offers more relaxed regulatory framework than old Europe.
What are the biggest challenges in office repositioning from a legal and transactional perspective?
The main challenges relate to permitting processes and ongoing regulatory uncertainty. In Poland, the issue is magnified by ongoing zoning reform. Interestingly, in Warsaw, the current undersupply of modern office space is reviving refurbishment and upgrading strategies for office assets.
How is the profile of capital investing across CEE changing today?
Local capital is playing an increasingly important role across the region. In Poland, despite the absence of REIT legislation, domestic private capital is becoming competitive with institutional investors for core assets. At the same time, international investors are more active in development and repositioning projects.
How are tightening ESG requirements affecting transactions, and what should investors do differently in 2026?
ESG considerations are still essential for the evaluation of exit strategies. Due diligence increasingly focuses on future compliance costs, data reliability and lease pass‑through mechanisms. Investors should assess “capex to compliance” early and align ESG strategy closely with financing and asset management.
