Garbe focuses on development rather than acquisitions in CEE

Garbe CEE has shifted its strategy in Poland to become more of a developer, similar to its approach in the Czech Republic and Slovakia. 

Martin Polak

The aim is to develop projects with co-investors and go through the entire development cycle, ultimately selling the assets, Martin Polak, managing director at Garbe CEE, told CRE Media Europe at Expo Real. Romania follows a similar trajectory, with the first land acquisition expected next month.
He expressed optimism about the state of the logistics market, noting that Poland and the Czech Republic are more developed markets, making them easier for international and institutional investors to approach. Slovakia, Romania, and other smaller markets like Hungary present challenges due to their smaller size and limited market activity. “This lack of comparable data, track record, and market evidence can make it difficult for international investors to form an opinion or make informed decisions,” he pointed out.
In larger markets like Poland, the constant flow of transactions, development projects, leasing activity, and financing provides ample data and information for investors to make well-informed decisions. In contrast, smaller markets with infrequent transactions force investors to rely heavily on the opinions of a limited number of participants. 
Polak acknowledges the prevalent optimism at Expo Real, but offers a nuanced perspective, questioning whether this optimism is based on genuine improvement or wishful thinking. He suggests that the current push for positivity might stem from pressure to move forward, leading people to convince others that things are improving, even if the underlying issues persist. He also questioned whether the root causes of the business struggles are due to capital market challenges, expensive financing, lack of available capital, or slow activity from occupiers.
Looking towards 2026, Garbe is focused on executing existing projects, securing tenants, and initiating new developments. Polak anticipates that the company's activity will primarily revolve around development work, with less emphasis on acquisitions and dispositions, at least for the next 18 months.

Branislav Pekić