blob 20 18
blob 01

01 That‘s Us

Too often, ‘making people happy’ seems to be more of a marketing pitch than a realistic corporate mission. At HB Reavis though, we deliver this and more – by following a well-being led approach and tirelessly focusing on people’s experiences within our developments.

2018 was a great example of this strategy in action. We delivered a number of workspaces with features well beyond the norm. We pushed other landmark developments closer to completion and announced new plans that will give us even greater opportunities to show how effective our solutions can be.

Put together, these investments combine to create an innovative portfolio that’s setting new benchmarks on the international stage.


We’re an international workspace provider with a mission to create remarkable experiences through real estate solutions.

In practice, we design, build and manage our buildings – from bespoke headquarters and retail malls to co-working spaces. But there’s more to this than real estate. We put users and local communities at the heart of our every decision and create cutting-edge workspaces.

Around 66,500 people use our projects as their place of work. Each day, over 100,000 people visit a retail or entertainment building that bears our hallmark. And as an asset manager, we continuously develop a portfolio of services that exceed the expectations of almost 475 clients, their employees and the countless visitors who use these spaces.

As well as our HB Reavis-led solutions, we have a number of brands that play a vital role in enhancing the productivity and well-being of businesses and their people.

The right way

WELLcome to better

The WELL Building Standard (WELL) certification framework assesses the way buildings and workspaces enhance well-being and productivity.

As we believe that quality spaces improve health and satisfaction, we’re thrilled to work so closely with the Standard: it confirms the potential and success of our projects.

  • Varso Tower was CEE’s first WELL pre-certified building.
  • The whole Varso Place vision is on track to receive WELL Gold certification once the buildings are completed.

For us, well-being comes from striking, long-term experiences. On one hand, these experiences are built around meeting the needs people consciously know about. And on the other, they fulfil desires they don't even realise will positively influence their stress levels and overall health, performance and satisfaction.


In practice, these experiences are the result of a variety of workstreams. There’s our investment in extensive research, the consultancy we provide through Origameo and the communities of startups and other businesses that call our HubHub co-working venues home. There are also our large-scale European campuses with their flexible leases and array of state-of-the-art, smart and symbiotic building solutions.

Together, they create a synergy that allows us to approach our projects holistically. This has led us to evolve from simply being a traditional developer into an international workspace provider, one that believes every company has the right to be a part of a thriving business community that helps them nurture their growth.

The happier and more effective people are, the more productive they’re likely to be. It’s a simple premise. But one we can prove.

We developed and tested an application that measured the productivity of employees in our Bratislava and London offices. It looked at the relationships between productivity, different spaces and types of activities.

The project was perfectly timed, as all the teams were moving from traditional, closed offices to new, activity-based spaces. By measuring people’s experiences as and when they happened, we were able to collect more compelling data compared to a one-off retrospective survey.

We saw variables that correlated with productivity and business metrics, including absenteeism, presenteeism, health issues, downtime, mood, sleepiness, satisfaction, engagement, intention to quit and turnover.

Ultimately, the data has given us new evidence-based insights that now underpin our discussions with workspace clients. We can consult with confidence and create people-centric designs that aid productivity and increase performance.

more More symbiosy Symbiosy origameo Origameo qubes Qubes HubHub HubHub
Building excellence

We’re one of Europe’s biggest workspace providers. A privately held business, we operate in the United Kingdom, Germany, Poland, Czechia, Slovakia and Hungary.

There are approximately 770 of us; talented experts with a passion for bringing remarkable experiences to people through our real estate solutions.

At HB Reavis, we do things a little differently. We provide infrastructure and design spaces that are completely people-centric. Places that help everyone who experiences them to enjoy what they do, while also developing their skills.

Health, well-being, productivity and happiness – these are the priorities that drive our development processes. Whether our team of experts are scoping potential investments, designing concepts or reviewing plans: the people who’ll experience our buildings are always at the forefront of our thoughts.

Not only has our approach succeeded in our home country, Slovakia, but we’re inspiring people in Poland, Czechia, Hungary and the United Kingdom too. Plus, we’ve just secured our first two German projects that will be managed by our new and growing Berlin office.


1.11m sq m GLA delivered to date

1.3m sq m GLA in the pipeline

487,500 sq m expected leasable area under construction

11 projects under construction

3.3bn gross development value delivered

6.6bn of gross development value in pipeline

2.5bn expected gross development value under construction

361,000 sq m managed assets

Note: Figures based on Internal Management Report.

blob 02

02 Financial Highlights

In 2018, our financial performance slightly improved. However, it’s still lagging behind our long-term target due to permit delays.

The Group generated a total comprehensive income of €102.1m (€96.5m in 2017). This translates into a 8.5% return on shareholders’ equity (7.6% in 2017). Our balance sheet grew to €2.35bn and adjusted net asset value reached around €1.344bn at the end of 2018.

At 30.5%, the Group’s net debt leverage returned closer to our target. In addition, the business performed well: we signed leasing contracts worth over 140,000 sq m of GLA  with almost 100 clients, 90% of which was new business.

Europe’s demand for offices continues to grow – beyond developers’ abilities to provide them. However, we’re working hard to meet that need.

According to Property EU, our pipeline makes us CEE’s second largest office developer (and one of the largest on the continent).

Comprehensive Income (€m)
96.5 102.1
2017 2018
Revaluation Gain (€m)
95.2 194.8
2017 2018
Net Debt Leverage Ratio (%)
26.8 30.5
2017 2018
Net Asset Value (adjusted, €m)
1,274.4 1,344.1
2017 2018
Return to Shareholders (%)
7.6 8.5
2017 2018

03 Key Projects

7th floor

7th floor

Location 33 Central

GLA 1,000 sq m


20 Farringdon Street

20 Farringdon Street

Location 20 Farringdon Street, City of London

GLA 7,883 sq m

Estimated GDV €143m


Cooper & Southwark

Cooper & Southwark

Location 61 Southwark Street, London

GLA 7,241 sq m

Estimated GDV €115m


Elizabeth House, Waterloo

One Waterloo (Elizabeth House)

Location South Bank, London

Estimated GLA* 117,325 sq m

Estimated GDV €1.974bn


Bloom Clerkenwell

Bloom Clerkenwell

Location 4-12 Farringdon Road,
48-50 Cowcross Street, London

Estimated GLA* 13,120 sq m

Estimated GDV €255m


Varso Place

Varso Place

Location Chmielna, Central Business District, Warsaw

Estimated GLA* 143,637 sq m

Estimated GDV €898m




Location Burakowska, Wola district, Warsaw

Estimated GLA* 78,306 sq m

Estimated GDV €278m


New Nivy zone

Nivy zone Bratislava

Location Mlynske nivy,
New Nivy zone, Bratislava

Estimated GDV €1.6bn


Twin City

Twin City

Location Mlynske nivy,
New Nivy zone, Bratislava

Estimated GLA* A, B, C 63,784 sq m,
Tower 34,625 sq m

Estimated GDV €256m


Nivy Station

Nivy Station

Location Mlynske nivy, New Nivy zone, Bratislava

Estimated GLA* 105,068 sq m

Estimated GDV €415m


Nivy Tower

Nivy Tower

Location Mlynske nivy, New Nivy zone, Bratislava

Estimated GLA* 31,720 sq m

Estimated GDV €95.7m


Mlynske nivy Kosicka

Mlynske nivy – Kosicka

Location Mlynske nivy, New Nivy zone, Bratislava

Estimated GLA* 117,284 sq m

Estimated GDV €373m


Agora Budapest

Agora Budapest

Location Vaci Office Corridor, Budapest

Estimated GLA* 141,151 sq m

Estimated GDV €461m




Location Landsberger Allee 104, Berlin

Estimated GLA* Approx. 45,494 sq m

Estimated GDV €312.5m


Budapester Strasse

Budapester Strasse

Location Budapester Strasse, Dresden

Estimated GLA* Over 40,480 sq m

Estimated GDV €141m


*Estimated GLA and project delivery subject to successful closing of acquisition, permitting, construction delivery and commercialization.

blob 04

04 Business Highlights



  • HB Reavis appoints new top leadership
  • One of Europe’s top real estate brands
United Kingdom

United Kingdom

  • Steven Skinner, joins as Chief Executive Officer, UK
  • Our fifth London development
  • Sale of Cooper & Southwark


  • HB Reavis appoints new top leadership
  • Peter Pecnik joins as Chief Executive Officer, Poland
  • HubHub opens its second Warsaw location
  • Building permits for a new Warsaw office campus
  • Gdanski Business Center II sells for over €200m


2.3bn sale of Metronom Business Center
Located in Prague-Butovice, the Metronom Business Center’s sale was Czechia’s biggest office property transaction of 2018. It’s now owned by the CS nemovitostni fond and managed by Ceska sporitelna’s REICO investicni spolecnost.



Rene Popik becomes Chief Executive Officer, Slovakia
A Board member and long-term part of the HB Reavis team, Rene has taken on the prestigious challenge of delivering New Nivy



Agora Budapest to welcome Raiffeisen Bank
At 20,000 sq m, Raiffeisen Bank’s new headquarters in Agora Tower was one of our largest-ever new leasing transactions and a standout deal for the Hungarian office market in 2018.


05 Group Overview

Group overview Property under development Asset management
United Kingdom

€52.1m Operating profit
€463.1m in investment property
130,445 sq m GLA under preparation
35,881 sq m GLA developed
57 professionals

€92.2m in investment property
85,974 sq m GLA under preparation
17 professionals

€103.6m Operating profit
€574.7m in investment property
253,092 sq m GLA developed
262,318 sq m GLA under preparation
156 professionals
Czech Republic

€9.0m Operating profit
€63.5m in investment property
160,353 sq m GLA developed
171,931 sq m GLA under preparation
50 professionals

€30.8m Operating profit
€668.8m in investment property
637,824 sq m GLA developed
480,858 sq m GLA under preparation
435 professionals, incl. oper. HQ

€14.6m Operating profit
€129.8m in investment property
21,603 sq m GLA developed
171,572 sq m GLA under preparation
50 professionals

2 professionals

4 professionals
sq m GLA under
sq m GLA developed

Note: Figures are as of the end of 2018 and based on the internal management report listing countries with real estate projects.

Market value upon completion,
€6,268m by segment
Market value upon completion,
€6,268m by country
34%United Kingdom7%Germany19%Poland9%Czechia22%Slovakia9%Hungary
34%United Kingdom
Planned GLA,
1.303m sq m by phase
58%Unpermitted pipeline37%Projects under construction5%Permitted pipeline
58%Unpermitted pipeline
37%Projects under construction
5%Permitted pipeline
Portfolio of properties under development
Country Number of projects Planned GLA sq m Market value upon completion €m
United Kingdom 2 130,445 2,229
Office 2 130,445 2,229
Germany 2 85,974 454
Office 2 85,974 454
Poland 7 262,318 1,268
Office 7 262,318 1,268
Czech Republic 4 171,931 582
Office 4 171,931 582
Slovakia 11 480,858 1,461
Retail 1 105,068 415
Office 10 375,790 1,046
Hungary 6 171,572 558
Office 6 171,572 558
Total 32 1,303,098 6,553
Market value
€1,274m by segment
Market value
€1,274m by country
32%United Kingdom22%Poland7%Czechia38%Slovakia1%Hungary
32%United Kingdom
Managed GLA
of total 0.361m sq m
Portfolio of properties under development
Country Number of projects Planned GLA sq m Market value upon completion €m
Owned income-producing assets 13 296,712 1 081.4
United Kingdom 3 33,748 404.8
Office 3 33,748 404.8
Poland 3 103,454 284.4
Office 3 103,454 284.4
Czechia 1 22,150 89.0
Retail (HB Reavis IM) 1 22,150 89.0
Slovakia 8 186,893 486.2
Office 6 144,474 382.7
Office (HB Reavis IM) 2 42,419 103.5
Hungary 1 15,037 9.5
Office 1 15,037 9.5
Total 16 361,281 1,273.9

06 Business review


Here in the UK, we’re in the midst of a real estate revolution. Companies are demanding far more flexibility from their premises. It’s a reaction to shortening business cycles, rapidly accelerating technologies and uncertainty around events like Brexit.

And that’s not all. There’s a weight of momentum behind occupational well-being. Employees are demanding spaces that mirror their professional and personal values and environments that enhance their ability to thrive. The result? Both the physical form of the office and the contractual way it is leased is changing.

We have clear plans that respond to this, including a commitment to make all our projects WELL certified. Together with our recently opened co-working platform HubHub, it’s what will set us apart from our rivals, who are mainly well-established public companies. By contrast, as a private firm, we’re free to be more agile and intuitive.

We have more control over the quality, speed and sophistication of our projects. Together, these unique attributes have allowed us to bring disruptive solutions to our occupier clients’ needs. We will continue in making bold decisions that create long-term value and meet the demands of the office leasing revolution.

Steven Skinner
Country CEO


After unveiling two projects last year, our first in the country, there’s no end of good news from Germany.

Berlin has become a solid base for international businesses. Talent comes from all four corners of the globe. And that diversity has created an alternative culture with arts and green living standards being particularly highlighted. It’s an ethos very much in line with our strategy which is probably why we feel so at home here.

Our first new site, DSTRCT.Berlin will mix the old and new to create something truly unique in Berlin. In fact, construction works began just weeks ago and the historical site of Alter Schlachthof will soon gain a new purpose as well as a new building.

During planning, the idea of a new retail centre was scrapped and we reduced the number of parking spaces. Instead, we developed plans for human-centric offices and a conference space to welcome innovations and leaders from different industries to the area.

From a well-being perspective, we are aiming high in our effort to receive certificates from WELL and the German Sustainable Building Council. And the design now includes eateries and a vibrant street scene to encourage people to spend their spare time here.

Marcel Sedlak 
Country CEO 


It’s been quite a year for us in Czechia. Probably our main highlight was the sale of our Metronom Business Centre in Prague for CZK 2.3bn.

It was the country’s largest single property transaction in 2018 and it cemented our status as the market’s major player. A great example of our well-being and user-centric approach, the office is near Nove Butovice metro station and boasts open air terraces and a BREEAM Excellent rating across three interconnected buildings.

It's sparked the transformation of a previously downtrodden area around the station. And with it, Metronom has attracted high-profile tenants, including BMW and German software giant SAP. It’s also proud to have the Conference Room of the Year.

All in all, it’s been an enormous commercial success that shows beyond doubt that our creativity and expertise results in offices spaces that inspire both clients and investors.

Elsewhere, we opened our first HubHub in Na Prikope. The third to open in Europe, it includes exciting features like gaming zones and private ‘phone booths’. Just as importantly, it’s geared towards efficient, effective working – 24hrs a day, 7 days a week. And it offers an inspirational variety of educational, networking and development events.

Hard decisions with communities at the heart of our thinking closed a year of success.

When it comes to business, we always bear in mind the potential of our projects related to business and local community needs.

We aim to create and support companies and their employees, businesses and local communities by creating business districts.

To fulfil our objectives in Czechia, the Group has announced on the 5th of February 2019 to vend the stand-alone projects in Prague because they are not sizable enough to make them suitable for the development of such business districts.

A new business district development, comparable to our Agora in Budapest or Varso Place in Warsaw, is planned in Brno, the second largest city in Czechia. We won’t forget about our already operating projects either, and will continue to focus on our Aupark shopping centre in Hradec Kralove.

The same goes for the HubHub co-working spaces, a vital part of our business community support, which will stay with us as well and seek further expansion in the future.

Petr Herman
Country CEO


HB Reavis is well established in the Polish market as a brand.

We’re trusted by the clients, investors and financial institutions that help us develop projects that transform the urban landscape and have a positive impact on the quality of work.

But, just as importantly, our efforts are appreciated by those who actually use the buildings — the people who make use of the spaces we have created for them every day.

In a sense, our ambition is our biggest challenge. We’re committed to continuous self-improvement, anticipating trends and observing a world that is changing before our eyes more rapidly than ever before.

We passed a number of milestones in 2018. Varso Place is making its mark on the Warsaw skyline, attracting interesting international brands such as the first Polish NYX Hotel. We also received planning permission for another large project focused on people’s health and well-being, the Forest office campus.

We continue to develop our service lines too, opening a second HubHub co-working centre in Warsaw and finding more clients for Origameo, our in-house workspace planning consultancy.

Furthermore, Poland’s rise into the world’s 25 most developed economies (the only Central and Eastern European country to be featured) presents us with new opportunities. International investors, including our clients and business partners, are being given more reasons to explore Polish opportunities. And we’re ready to provide them with the best environment for that growth.

Peter Pecnik
Country CEO


2018 was a hugely exciting year for us in Slovakia. A year when we could say with real authority that we’re bringing remarkable experiences to people’s lives.

Bratislava is gradually acquiring a new district; a huge space with the potential to serve more than 30,000 employees, plus thousands of others who live and visit the area. Our revitalisation of an old brownfield site will create a place for work, business growth, leisure and life in general.

All our new company initiatives and services will come to life here to make New Nivy the heart of the city. However, it’s not just a set of projects, but a significant ecosystem of communities, large companies and start-ups. An ecosystem that will allow its users to grow. More broadly, it will increase Bratislava’s competitiveness not only in terms of work and quality of life, but also its ability to develop talent.

If you ask why we are doing this, the answer is simple: we want to stay ahead of the curve. It’s something we’ve been doing for the last 25 years. We all know that life has changed. We work differently, perceive spaces differently and have different needs. Different generations want different things from their workspace that must be provided if we’re going to see the new ideas, innovations and social interactions that underpin commercial success.

We aim to take all of this into account and redefine business culture and ways of working through our unique insights into workspace solutions. Put together, it’s a remarkable experience for us as well as for all the communities our work, help to thrive.

Rene Popik
Country CEO


HB Reavis is a relatively new name on the Hungarian market, with one finished development. But we’ve already set a tone for our work. What distinguishes us is our community focus, people centricity and unique communication style.

We’re at our best when we provide workspace as a service solution: enhancing well-being and productivity from a variety of perspectives across large office spaces.

Our landmark project, Agora Budapest, is the perfect distillation of this thinking. It will offer one of the largest contiguous office spaces in the city, a scale of footplate that’s in increasingly high demand.

The project has already been heralded as the Community Space of the Year for the innovative way we presented it to the public. The ‘showroom’ designed by MadiLancos Studio, was made from six shipping containers and situated in a new 5,000 sq m park.

It was the perfect place to introduce the public to our ideas for the plot, and since then, the park has held a number of events, from an ice rink to cooking classes. And it’s this kind of holistic thinking – going beyond the building to serve the needs of the community in a myriad of ways – that will bring us further success.

Naturally, it also needs to deliver a remarkable experience when built. So, it was great to see it awarded Planned Project of the Year – Commercial by another group. And we can’t wait to see the impression it leaves on Raiffeisen Bank, who has signed a deal to make it their new headquarters and home to 1,300 employees.

As well as leased tenants, we’re also working hard to serve the city’s growing need for co-working space. Our first HubHub office has just opened its doors.

All the signs are positive. Whether it’s our delivery milestones or interest from potential occupiers, it should be a fantastic year.

Jan Hubner
Country CEO


The UK economy continues to be remarkably resilient despite significant headwinds both domestically and globally.

The economy generally suffered a lack of momentum in 2018, with forecasts estimating annual growth of just 1.3% – the lowest since the financial crisis. This is important to consider given London office rental values have the highest correlation to GDP of any sector.

The labour market defied growth: unemployment is at its lowest since 1975. This essentially means we should see a rebound in both sentiment and spending if and when there’s greater certainty surrounding the post-Brexit landscape.

However, given the drop-in inflation and some mild fiscal stimulus from the government, GDP forecasts for 2019 are more positive with growth at 1.7% assuming an orderly Brexit. This is expected to be driven by re-emerging wage growth, household spending power recovering from recent lows and businesses making investment decisions that have been put on hold since 2016.

Longer term forecasts also remain favourable when compared to other EU countries with the UK having the highest predictable annual rate amongst major European countries.

The forecasts for interest rates remain on an upward curve, albeit on a slightly delayed trajectory as the Bank of England’s policies wait on Brexit. The longer-term trend, though, is clearly upwards and we should be conscious of the impact on borrowing costs and investment yields.

The largest risk factors that could cause major deviation remain constant from 2018 – the type of Brexit we see occur and the accompanying political risks. We would also highlight some increased global risk including a slowdown in China, the US-China trade war and threats of recession in some European countries.


German GDP has steadily grown since the 2009 global financial crisis. Purchasing power and consumer confidence is still strong, as unemployment – now at 3.4% – continues to decrease. Inflation rates eased last year to 1.4% and consumer prices dropped 0.8% at the beginning of 2019.

Politically, the country is relatively stable. Mrs Merkel won’t run again and there’s a little trouble brewing in the coalition, growing AfD influence and tensions with Polen/Ungarn. But none of these issues should impact purchasing power or consumer confidence.


Czechia’s economy is doing quite well. In Q4 2018, GDP increased by 1% quarter-on-quarter and 2.9% year‑on‑year. Average inflation was 2.15%. Overall employment increased by 1.6% year-on-year.

Economic growth is projected to remain strong in 2019, although it will slow. As of November 2018, the unemployment rate and the ratio of job seekers per vacancy were the lowest in the EU. This could encourage businesses to invest in automated work and machinery, a solution that would increase productivity in the medium term.

While there was no early election in 2017, the government lost a confidence vote in January 2018 and resigned. In July 2018 the administration, currently an ANO 2011 and leftist Czech Social Democratic Party (CSSD) coalition, finally won a second vote of confidence.

Still lacking a majority with only 93 seats in the 200-member parliament, it had to rely on the support of the pro-Russian Czech Communist Party, which since then has enjoyed an informal role in government.


2018 was a record year for Poland’s real estate investment market. More than 100 transactions were completed. Worth over €7.2bn, this was an impressive rise of nearly 45% year-on-year.

Of that, €2.75bn changed hands over office properties, a 56% increase year-on-year. More than two thirds of these offices were in Warsaw, including our sale of Gdanski Business Center C&D to Savills IM for over €200m.

Following years of strong expansion, real GDP growth reached 5.1% in 2018 – the fourth highest in the EU.

The main driver behind this was domestic demand. As in 2017, private consumption was fuelled by favourable labour market developments, strong consumer confidence, good access to credit and low inflation.

Private investments were also a large contributor to growth, along with an acceleration in the use of EU funds to fund public investment. Unemployment in October 2018 was also just 5.7% – the best October figures in 28 years.


In January 2019, the Eurozone celebrated its 20th anniversary, and Slovakia 10 years of the Euro. In spite of the well-publicised issues, these two major events have had a positive impact on our country overall.

There’s no doubt they both helped the significant 4.1% GDP growth in 2018 and the record-breaking low employment rate of just 6.6%. This year, we expect that rate to decrease further, inflation to stay above 2% at 2.3% and GDP to drop a little, to 3.8%.

The global and Eurozone economies are both performing well and having a very positive impact on affairs here in Slovakia. 2018’s last quarter GDP was 4.6% and inflation in December 2018 just 2.1%.

Overall, these markers have had a positive effect on purchasing power: household consumer confidence is at a 10-year high. The political situation is stable, with presidential elections held in March 2019 and public debt is now below 50% of GDP. The only possible threats might be Brexit, trade wars and a slowdown in global growth.

In turn, the European Commission expects unemployment to continue a downward trend, along with deficits in public finances and public debt. This will result in growth and increased salaries and spending as we continue our rise to become the 3rd fastest growing economy in the Eurozone.

On the other hand, consumer inflation probably peaked in Q2 2018 and will stay around the same in 2019 with a slight increase in the latter half to 2.6%

Source: / page 23


We are very pleased to say the Hungarian economy performed well beyond expectations last year, hitting 4.9% growth by the year end – the strongest GDP growth in 13 years.

According to research, it was also over twice the EU average in the first three quarters, making it one of the top three fastest-growing on the continent. To see why, look no further than domestic consumption. However, the growth cycle is likely to have peaked, and the market’s expected to slow to around 3.4% growth in 2019.

The numbers speak for themselves. And we’re doing our best to not only keep pace with an ambitious local market, but set new benchmarks through our people-centric development strategies.


In 2018, the take up of London offices was above the long-term average – even if you discount because of service office operators. Despite Brexit uncertainty, transactions in London in terms of square meters are on a five-year high. This proves there’s a real commitment by large occupiers to the market and to high quality product offerings.

The demand side looks equally as robust with 700,000 sq m of active requirements (over 1,000 sq m) in Central London – above the long-term average. Interestingly 1/3 of this is in banking and finance.

Net Effective Rents in Central London have declined slightly from the all-time peak in 2015. However, this was driven by an expansion in tenant incentives rather than headline rental declines. This has clearly stabilised given the volume of space let and the amount of active requirements remaining high.

There is a clear trend emerging in growth prospects for new high-quality office space vs the rest. Buildings meeting these criteria see an increase in net effective rents. More generally, we expect the rental market to grow again from 2020 as wider macro political and economic conditions improve.

Investment volumes in Central London increased from £16bn (2016) to £21bn in 2018, above the 5year average of £20bn, highlighting the continued interest in the UK, generally from overseas buyers.

However, since 2016, yields have remained low. This is surprising. For the first time since 2003 yields and growth aren’t in step. We see yields moving outwards gently over the next 24 months.

When looking at the development pipeline, we see great opportunities to capture a shrinking new office starts and robust occupier demand – 50% of the 2020 pipeline and 30% of the 2021 pipeline is already pre-let. Excitingly, around 900,000 sq m of leases expire over the same period.

Changes in UK Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

There were a number of economic factors that affected the market, including changes to rents, costs of operations, costs of lending/financing/construction and divestment assumptions. And with Berlin’s 4% GDP boosting the demand for workspace, the resulting squeeze on construction capacities adds pressure to delivery.

That said, Berlin’s start-ups from the recent past are now much bigger businesses – such has been the success of technology, service and other industries over recent years. With upcoming office supply limited, the larger of these clients are adapting and trying to secure future workspace needs in advance. In fact, agents are reporting over 700,000 sq m of pending mandates for new workspace


At present, the positive outlook has led clients to seek out more sophisticated workspaces. There’s a trend – very much led by us – to place greater focus on people, sustainability, effective working practices, green spaces and amenities. It’s an ever-evolving brief, though. We need to continue to respond to clients’ needs and innovate so they can attract the best people.

Frustratingly, there’s still a huge issue around permits. And not just in the capital. The enormous legislative backlog has brought essential infrastructure projects to a standstill, including Prague’s own Metropolitan plan.

Changes in Czech Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

Office space in Poland now stands at more than 10m sq m. Warsaw, in particular, had over 5.4m sq m of office stock by the end of last year and tenant activity in 2018 reached a record-breaking 858,400 sq m 4% higher than in 2017.

At the end of 2018, there was around 720,000 sq m of office space under construction in the Polish capital, the majority under 24 months into the building process. However, as Warsaw is one of Europe’s fastest growing business communities, the additional volume means the city will simply be keeping up with demand.

Vacancy rates in Warsaw have continued to fall. By the end of 2018 it had dropped to 8.7% – the lowest since 2012. And while 10.8% of outer city addresses are vacant, central space is very limited. There’s just 5.4% of space on the market available, a low not seen since 2009.

All in all, the market is now increasingly matured. Growing liquidity and broader diversity have led investors to use a wider mix of investment and divestment strategies. The belief is that investment in Poland will continue, driven by GDP growth at a slower rate than 2018, along with strong consumer spending, record low unemployment and growing public and private investments.

Changes in Polish Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

There’s an almost equal balance of Grade A (60%) and B (40%) office space here in Slovakia.

The real estate sector is always reacting to clients’ needs. And with many businesses waking up to the importance of the workplace to attract and retain talent, we see lots of potential in the current climate. There’s a visible need for new development as clients ask for better and healthier offices.

Changes in Slovak Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

Consumption actually increased by c.5%. Imports (5.5%) grew faster than exports (4%). The 3.8% inflation seen in October dropped to 2.7% by December and is forecast to grow around 3% in 2019. And we saw a 0.2% drop in the unemployment rate compared to 2017.

In 2019, we’ll be voting in both municipal and European Parliament elections. The FIDESZ governing party will likely continue to be in power. Though competition may be stronger in certain areas, a lot will depend on whether opposition parties pool their resources.

Will 2019 be a new high? Last year was another standout year for Hungarian real estate – making the last three years the largest ever by volume. Based on turnover, Hungary is catching up to the second biggest market in the Central European region, Czechia.

In fact, CBRE says the country’s investments topped €1.3bn last year; a remarkable feat even if it is somewhat lower than 2017. 2019 looks promising with solid investor appetite and analysts predict it will be another record-breaking year, but with a somewhat more conservative investment volume.

Demand continues to be lively in the commercial, office and industrial markets. For the first time, there were more Hungarian assets than foreign ones: well-capitalised Hungarian investors have reached a share of 84% of the total volume of the market.

Housing construction has also risen, primarily due to the uncertainty about VAT on new apartments. But there are more reassuring messages coming from the regulators now, along with a five-year extension of this preferential VAT rate for construction permits acquired by November 1st last year.

Changes in Hungarian Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

Last year, two of our projects were completed.

Southwark was pre-leased and forward sold off to a confidential global investor at a record price for the Southwark market. And 20 Farringdon Street was completed and achieved 83 % let.

Our new plug and play offering at Elizabeth House in Waterloo was successfully designed, launched and fully pre-let to start-up companies. We launched our first HubHub, creating an education-led community that fosters growth while offering high quality flexible workspace.

We also purchased the Farringdon West Crossrail Over-Site Development Bloom Clerkenwell. In a highly creative area that lacks quality new builds, it will boast large floor plates, terraces, WELL and BREEAM ratings along with sustainable heating, cooling and electricity systems.

With three Underground lines, Mainline services and the new Elizabeth Line underneath, it’s one of the best-connected addresses in the capital too.

Lastly, we’re continuing to evolve our plans for Elizabeth House, Waterloo. We held several public consultation events to discuss this strategically important and hugely complex site.

It was a great chance to launch some of the first concepts and images of the scheme, which aims to deliver over 117,000 sq m of the highest quality workspace, and include a new c.0,5hectare public space to provide much needed tranquil areas around one of London’s busiest transport hubs.

HBR Development United Kingdom GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 15,124 111.9 157.3 229.6 12.0 259.5 72.3 13.0
Projects under construction 13,120 0.0 0.0 57.8 10.8 255.1 57.8 57.8
Projects in preparation 117,325 0.0 281.8 281.7 94.8 1,974.2 -0.1 8.3
Total 2018 145,569 111.9 439.1 569.1 117.6 2,488.8 130.0 79.1
Total Pipeline for 2019 130,445 0.0 281.8 339.5 105.6 2,229.3 57.7 66.1

However well we’re perceived in other markets, we’re still a newcomer to Germany. So, we need to prove ourselves, and the last two years have been all about putting the right structure in place.

Now, with around a 86,000 sq m pipeline, sites in Berlin and Dresden and a 20-strong team – we’re ready. Looking forward, we expect to establish our construction capacities, deliver our first project, continue planning works in Dresden and search for new acquisitions.

HBR Development Germany GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Projects under construction 45,494 0.0 0.0 87.8 12.5 312.5 87.8 88.0
Projects in preparation 40,480 0.0 0.0 4.2 7.2 141.4 4.2 4.0
Total 2018 85,974 0.0 0.0 92.0 19.7 453.9 92.0 92.0
Total Pipeline for 2019 85,974 0.0 0.0 92.0 19.7 453.9 92.0 92.0

We’re a well-established player here. Our strategy ensures we create award-winning office developments, such as our first HubHub – which attracted really interesting businesses in its very first week, including the online book shop, the Letgo sales app and growing start-up Productboard. It’s almost fully let and it also won ‘Best Rising Star’ at the CIJ Awards.

Our main competitors are characterised by an appetite for large-scale acquisitions.

We do work with scale, but add a real focus on creating tailored office buildings that enhance well-being – through WELL and BREEAM certificates – and provide supplementary services, e.g. fit-out, designers, etc. It’s led to our reputation of pushing boundaries with new, non-traditional and innovative solutions, services and products.

Our Metronom Business Center sold for CZK 2.3bn – the country’s largest office deal. We successfully gained a demolition permit for our Vinohradska project and moved into the planning phase for our Merkuria complex in Prague 8 and Radlicka offices in Prague 5. And our continuing management of the Aupark Shopping Center - retail and leisure concept, too, marks us out from the competition.

HBR Development GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Projects under construction 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Projects in preparation 171,931 45.6 55.0 61.8 34.4 582.3 6.8 2.6
Total 2018 171,931 45.6 55.0 61.8 34.4 582.3 6.8 2.6
Total Pipeline for 2019 171,931 45.6 55.0 61.8 34.4 582.3 6.8 2.6

As the youngest and arguably the most innovative of Warsaw’s top commercial developers, we’re best known for our workspaces and the services we have strategically rolled out around them. But there’s a lot more to come.

We’ve now delivered 250,000 sq m of workspace in Poland over the last six years, with just as much planned and under construction. And we get new enquiries from prospective clients practically every day.

In 2018, we leased almost 53,000 sq m and welcomed more than five thousand new employees from companies relocating their offices or extending their lease agreements.

Works on Warsaw’s largest construction site continue at pace. Varso Place with its iconic Foster+Partners tower reached ground level in Q4 2018, and should be completed wihin the next two years. Already, the buildings are filling with tenants – including Poland’s first NYX Hotel by Leonardo Hotels, a two-level fitness club and a medical centre.

Varso Place will not only provide a healthy workspace for Polish and international businesses. In line with our strategy, it will also have a positive impact on the neighbourhood. In particular, the redevelopment of Chmielna street will create a more convenient connection with the Warsaw Central Station pedestrian tunnel as well as new cycling infrastructure.

Passers-by will be able to enjoy a selection of new public amenities too, including shops, restaurants and other useful services. And that’s without mentioning the stunning observation deck on top of Varso Tower.

Elsewhere, late summer saw us obtain a building permit for the Forest office campus. It’s another ambitious project that will be tailored to employees of all generations and provide healthy and creative working conditions. The two-hectare plot will become home to a 120m tower and smaller buildings with open ground floors, an elegant public square and large green areas.

Following the success of Poland’s first HubHub at Postepu 14, we also opened our second co-working hothouse for young entrepreneurs last year in a new building in Nowogrodzka Street in Warsaw.

Our in-house workspace solution, Origameo, is also going well, consulting for a number of local clients, including the Polish base for the world’s largest chemical company BASF.

HBR Development GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Projects under construction 143,637 195.3 251.7 351.1 40.5 898.5 99.5 45.7
Projects in preparation 118,682 45.7 58.3 89.7 23.4 369.4 31.3 10.9
Total 2018 262,318 241.0 310.0 440.8 63.9 1,267.9 130.8 56.6
Total Pipeline for 2019 262,318 241.0 310.0 440.8 63.9 1,267.9 130.8 56.6

We finished Twin City Tower last year – the site of our biggest leasing transaction in 2018 – and also broke ground on Nivy Tower. Both the projects are on Mlynske nivy Street and are the first example of our broader focus on crafting an entire district rather than just a building.

Twin City Tower is planned to be the country’s first to hold a WELL certificate. Going forward, we intend for all our future buildings to gain the accreditation along with the BREEAM community certification.

It’s this focus on putting excellent features, services and design at the heart of our work that differentiates us from the rest of the market. For 2019, we’ll continue to provide innovative workspace solutions to our clients and hold our place as one of the market’s top three brands.

HBR Development GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 34,627 20.9 52.4 106.8 7.0 115.3 54.5 18.9
Projects under construction 135,788 56.2 92.9 157.2 28.9 510.3 64.3 45.1
Projects in preparation 345,070 79.7 82.8 88.8 63.6 950.7 6.0 5.1
Total 2018 515,486 156.8 228.1 352.8 99.5 1,576.3 124.8 69.1
Total Pipeline for 2019 480,858 135.9 175.7 246.0 92.5 1,461.1 70.3 50.2

In the office market, the demand for new space remained and is expected to remain strong in 2019 as well, with an expected pipeline of over 130,000 sq m of new office space.

CBRE calculated vacancy rates dropped to 7.4% by the end of 2018 and the total new supply amounted to 230,600 sq m, nearly tripling y-o-y. With over 484,000 sq m under construction across Budapest, the Vaci corridor submarket retains its position as the top development destination in the city.

We expect to see strong tenant demand lead to a lower vacancy rate and a slight growth in rental fees. With more focus on well-being, the number of European buildings with WELL qualification could increase considerably. It’s great that Budapest is finally building to exacting international standards and paying more attention to sustainability and user well-being.

Our deal with Raiffeisen Bank is one of the largest new leasing transactions for both the Group and the Hungarian office market. The bank will lease nearly 20,000 sq m for the long-term and take up around 60% of Agora Tower in the beginning of 2020.

We hope to close a few more deals this year too. But we’re mostly focused on speeding up construction in the first phase of Agora so we can complete it by the beginning of 2020. The second building, Agora Hub, should be completed in the summer of 2020.

HBR Development Hungary GLA sq m Valuation ERV GDV Value Change Investment 2018
2016 2017 2018
Projects completed 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Projects under construction 71,153 40.9 41.9 70.0 14.1 226.7 28.1 21.7
Projects in preparation 100,419 8.2 38.5 48.3 20.7 331.7 9.8 3.6
Total 2018 171,572 49.1 80.4 118.3 34.8 558.4 37.9 25.3
Total Pipeline for 2019 171,572 49.1 80.4 118.3 34.8 558.4 37.9 25.3
blob 6 blob 6 blob 6 blob 6 blob 6 blob 6
The United Kingdom
blob 7 07  

07 From Our Leaders

I’m again pleased to say it’s been a strong year for business. Due to the strong economies in our home countries, an ample availability of capital and vibrant office leasing demand, our assets increased in value in all the EU capital cities we operate in. In fact, the revaluation of our assets led to a gain of €195m. This was partly triggered by a favourable 30 basis point yield shift.

The workspace sector is undergoing perhaps the biggest structural change in the modern age. What used to be considered a cost to most tenants is gradually becoming a human resource tool to keep employees healthy, engaged, motivated, happy and productive. At HB Reavis, we’re not merely embracing this change, we’re driving it – and pioneering the people-centric workspace evolution.


08 Board of Directors

Peter Ceresnik
Member of the Board
Peter joined  Reavis in 2016 as a Group Leasing Director and was responsible for the overall leasing strategy, overseeing teams in Bratislava, Prague, Warsaw, Budapest and London. He was appointed to the Board in October 2017 and continues his contribution to delivering HB Reavis’ successful workspace solution service and co-working scheme. Peter is an MBA graduate of the University of New York in Prague and City University Bratislava and has previous experience from the IT sector where he held leadership positions as the General Manager at Exe and Country Manager at both Microsoft and the SAS Institute.
Marian Herman
Marian was appointed to the position in March 2018. Marian has been our Group CFO and Member of the Board for the last four years and before that he had been leading the Investment Management and Divestment at HB Reavis since joining the company in 2010. Previously, he had worked in London for RREEF, Deutsche Bank and ING Group. Marian holds master’s degrees in Finance from the London Business School and in Financial Management from the Comenius University in Bratislava, Slovakia.
Radim Rimanek
Member of the Board
Radim is the Board Director of HB Reavis Group and oversees the UK business. He is also responsible for the company’s activities in Czechia as well as launching development activities in Germany. Previous employers include McKinsey & Company and Dun & Bradstreet in New York and in Prague. Radim is a graduate of Harvard University.

09 Our People

A few years ago, we defined the ultimate purpose of all our business endeavours as ‘bringing remarkable experiences to people’s lives through real estate solutions’.

At the time, we mostly meant the people outside of our organisation – our tenants, customers, external partners, investors, neighbours and, of course, our end-user community. However, we also do this regarding our employees. Bringing remarkable experiences to our employees’ lives is one of our most important challenges for the coming years as well.

In recent years, we have implemented this concept into our daily lives. It supports the company’s vision and strategy and we have identified six core company mindsets, key elements of our corporate culture that have always been present and have made the business successful and a great place to be.

Many initiatives have helped us educate the whole organisation and embed these principles into our daily lives, the aim being to transform us into a trendsetting, successful and inclusive organisation that inspires other businesses in our industry, both in our geographical region and outside of it.



Our People Leadership Program (PLP), a performance and talent management framework that was implemented at the beginning of 2018 to the whole group, continues to play a crucial role in enabling the employee-focused experience of HB Reavis.

It has provided us with a common platform where employees and their people leaders agree on employees’ job related and developmental aspirations, discuss feedback and steer the careers of employees in the desired directions. The main elements of the program, such as aspiration setting and holistic feedback processes, have already been implemented and are ongoing. The design of the talent management and succession planning modules has already begun and is to be implemented during 2019.

We are very proud that we can already see the impact of the program. Together with other strategic HR initiatives, it helps us build a culture of strength-based and constructive feedback in the organisation and cultivate and systematise the dialogue between employees and people leaders, thus very positively impacting the employees’ experience and engagement. As we have already started measuring the impact of these and other similar initiatives on the engagement of our employees, in the near future we will even be able to quantify the positive impact of all of our people-focused initiatives.



In the field of change management, we focused on a number of important areas. In some of them, we continued to develop our work from the previous year, and with others, we started in 2018.

Our change management teams continued to work behind the scenes to make sure strategies were being properly executed, always using a data- driven approach when appropriate. The main focus was to help everyone understand our strategy. In 2018, we improved the communication of the strategy in order to be much closer to our people and to have the opportunity to better explain all the key components. To understand how communication works, we’ve established measurements to see if every employee understands ‘what it means for me’ and if it is reflected in teams’ aspirations.

We also focused on mindsets and habits. Along with the move to our new office in Slovakia, we wanted to implement all the habits people consider important for themselves and the company. We focused heavily on the communication of those topics to people, either through workshops, in small groups or individually.

As part of that move, we also focused a lot on our project teams. We created project islands, a special area dedicated to cross-functional project teamwork in order to enable teams to work closer together and to significantly increase their cooperation, alignment and performance. As we understand that physical space is crucial but not enough, we also worked hard on the improvement of related principles, roles, processes and routines. Now we have a project handbook in place that was co-created with the teams while respecting key changes and it was driven by the overall strategy. Research has shown that this has already significantly improved the alignment of the teams and helped focus their work on activities that add value. Going forward, we will focus on the broader implementation of this with the intention of ensuring the consistency of the project teams’ work across the group.

Last but not least, we worked with different areas of the organisation to increase our operational capabilities: evaluating and redesigning routines, processes, tools and spaces to make us future proof.

Now, we’re looking at several parts of our business - the integration of HubHub and Origameo into the development process and the redesign and development of asset and property management organisation so that they drive excellent customer experience and support our strategy in the long- term. All of that is being done in order to become better organised and more efficient in achieving our mission.


People development has always been a crucial topic for HB Reavis and within the PLP it has become even more important. Consequently, in 2018, we launched the HB Reavis Academy (further only ‘Academy’) as a key building block of people development in HB Reavis. The Academy is more an environment than an institution. The Academy is a platform that equips people to grow their competence and shape the culture within the company to prepare it for current and future business challenges. It is a way we work and interact, with the primary aim being to support people in their growth to enable the company to achieve its objectives.

When doing so, we believe it is important for the Academy to reflect the following principles:

  • The Academy reflects the strategy and values of HB Reavis. It helps to understand and apply them on the job.
  • The Academy promotes ownership and an accountability mindset.
  • The Academy is based on a mutual relationship – I take care of the company <-> the company takes care of me. Both of us care and contribute.
  • Development activities initiated by the Academy bring added value, both to the participant and the company. Their purpose is to make a real difference in people’s working lives and have a positive impact on the company’s growth.


blob 10

10 Setting an Example

We’ve moved to a new office in Bratislava to put all our experience and innovations into practice. There was a massive amount of research behind the move. The resulting people-centric design weaves together a range of solutions that help us all to be more productive – and feel more positive – about work.


nourishment Nourishment Light Light Fitness Fitness Comfort Comfort Mind Mind Productivity Productivity Fun Fun Air Air Water Water
blob 11

11 A Positive Force in Our Communities

In recent years, we’ve changed the face of the brownfield site in Prague’s Karlin district through our award-winning River Garden Offices I and II-III. Warsaw now has our Konstruktorska Business Centre. And our Gdanski Business Centre business district has been welcomed by both the professional community and clients.

Add to that our work on Twin City, our flagship Bratislava project, and it’s clear our strategy for transforming abandoned and run-down areas into vibrant and useful sites pays dividends for communities as well as investors.

Now, though, we’re taking a step into the relative unknown. The old slaughterhouse in Berlin will become a multifaceted destination with a revolutionary new approach to business: vintage industrial meets new work.


Designed for Berlin’s creative and tech-led communities, DSTRCT.Berlin will sit between the vibrant Friedrichshain and Prenzlauer Berg districts, just next to a major S-Bahn hub and only a few minutes from Alexanderplatz and downtown Berlin.

It’s also a stone’s throw from the Velodrome, the heart of Berlin’s bike scene and a huge event space that regularly hosts 12,000 people. It’s a neighbour that’s already influencing DSTRCT’s design, with a dedicated cycle garage ready to welcome its users.

The project’s creative concept and its proximity to a community of bustling restaurants and bars are proving very attractive. A number of potential tenants have already made serious enquiries about its healthy, social and lifestyle features.

The neighbourhood is easily accessible by S-Bahn and tram and is located in an epicentre of leisure, with a whole host of sport and recreation facilities within easy reach.

DSTRCT.Berlin is spread across five storeys, with three atriums and 49,000 sq m of space. Urban, raw charm and spaces for art in and around the site reference the past and point towards the future. While it’s an ambitious, character-driven project, it also fits seamlessly into our strategy of creating remarkable spaces that strive to deliver the perfect work-life balance.

Going green, adopt BREEAM

Business wise, CSR has evolved into a natural part of our vision and strategy. We want to bring remarkable experiences to people’s lives through our real-estate solutions. That’s why we always aim to create something unique and innovative. Something our clients and the communities we serve do not expect from a real-estate developer.

Our clients want future-proofed properties that are environmentally efficient, helping them to meet not just their own sustainability targets but also create spaces in which their employees feel great.

At HB Reavis, we have long recognised the benefits of developing to established international sustainability standards. This is why we were one of the first developers in the region to adopt BREEAM standards for our projects, which are recognised worldwide as the benchmark for sustainable building and innovation, especially in terms of energy conservation.

Looking ahead, we’ll continue to integrate a number of proactive sustainability initiatives throughout the Group and in certain properties to help reduce our environmental footprint.


BREEAM Communities

BREEAM Communities is an assessment method used to measure, improve and certify the sustainability of large-scale development projects. And we’re absolutely thrilled that the New Nivy district has become the first cluster of projects in the world to register under its latest version.

It demonstrates our commitment to shaping cities and delivering exceptional spaces for people to enjoy; whether they live in, work in or visit our developments. BREEAM Communities assess a project’s wider environmental impact on its surroundings while acting as a framework for master planning. Focuses include effects on social and economic well-being, natural resources, energy use, infrastructure, housing provision and economic facilities.

We hope the entire New Nivy district will eventually be BREEAM Communities International certified. It’s our chance to set a new benchmark for visionary place making, from Twin City Tower and Nivy Station to other new office schemes, public infrastructure and greenery – including an urban garden equal in size to two football pitches.

blob 12

12 An Ambition to Set New Industry Trends

We’re now fully focused on creating and managing complete business districts rather than individual buildings. For us, the best way to deliver remarkable experiences is to develop neighbourhoods big enough to support the vast range of services we believe are vital to support companies’ and communities’ growth.

In line with this strategy in Czechia, the Group has announced on the 5th of February 2019 to vend the stand-alone projects in Prague because they are not sizable enough to make them suitable for the development of such business districts.

Now, we’re pushing ahead with our project in Brno – Czechia’s second biggest city – which is comparable in size to Agora Budapest and Varso Place. The increasingly popular Aupark Hradec Kralove shopping centre will remain part of our portfolio.

HubHub is another facet of our work we see growing exponentially over the coming years. Already a successful network, the co-working brand facilities operate under the HubHub brand.

Right now, our most prominent projects include One Waterloo, near London’s busiest transport hub, Varso Place, which includes CEE’s tallest tower and the shopping centre and international coach terminal, Nivy Station in Bratislava.

Headlines are also being written about Agora Budapest, soon to be Raiffeisen Bank’s Hungarian headquarters, and DSTRCT.Berlin, the transformation of a period building into a state-of-the-art creative business address.



We don’t merely lead the industry at HB Reavis, we set trends. From innovative building designs to creative workspace solutions, we put users at the heart of every decision and the forefront of delivery. And it’s a method that’s winning friends across the continent.

Over the last year, we’ve cemented that way of thinking into an evolved portfolio of services, brands and a development pipeline of truly ground-breaking projects.


The shift from B2B to B2U

To create remarkable experiences, we had to focus on the people who live and work in our developments. It’s a shift that was enhanced by the pan-European occupiers research published by CBRE in April 2018* which shows occupiers are giving more and more weight to the effects of workplace solutions regarding productivity and employee satisfaction rather than operational efficiency. We assess the impact our products and services have on our clients and constantly explore ways to improve their productivity and well-being.

Shift to focusing on large-scale business hubs

As working habits change, there’s more focus on flexibility. People want more variety in the spaces they work in as well as help with more agile collaboration – not to mention tech advancements and access to start-up and innovation communities. To meet those needs, we’ve concentrated our efforts on creating and operating large, 10,000 worker business hubs. That scale means we can infuse our designs with genuine flexibility and foster inspirational communities with the freedom to encourage social synergies.

Additional operator role

If we’re to ensure users get the support they need, it’s not enough for us to build and hand over the keys. We need to manage our projects after completion. But while not necessarily taking on full equity, we’re using our services and innovations to significantly increase rental income and set new standards for the industry.



*CBRE Research – EMEA OCCUPIER SURVEY 2018; Optimising user experience: The personalised workplace

What we achieved in 2018

  • Evolved from being a straightforward developer into an international workspace provider (WaaS)
  • Announced our first two German projects in Berlin and Dresden
  • Second phase of our Gdanski Business Center in Poland was sold out for over €200m
  • The landmark Varso Tower project has seen construction move above ground
  • Sold Metronom Business Center for CZK 2.3bn
  • Purchased the Farringdon West development in London Bloom Clerkenwell
  • Started work on One Waterloo, a landmark London project


13 Business Review

Business review Development landscape Product design Leasing activity Progress in permits Construction cost management Development portfolio structure Performance of developmentdev. activities

Real estate development is a very complex business. If you’re an international workspace provider as we are, this brings even higher complexity. We make life even tougher for ourselves because our mission is to bring remarkable experiences to people through our real estate solutions.

We aim to set trends in office space solutions. We aspire to always bring something more than clients and communities expect from us, something that will differentiate our projects from others. We believe this is the right way to create greater value for our partners, clients and local communities, as well as for our shareholders to achieve their projected growth and desired return.

In light of this approach, 2018 was another great year in terms of achievements and confirming we’re on the right path.

Changes in Group Development Property Value (€m)
Yield shift
Accrued profit
Pipeline 2019

The development landscape, in general, was stable. Nevertheless, our respective markets differ slightly. Central London showed slightly lower supply and slightly increased vacancies, with rent stagnating or slightly decreasing based on the location. It seems that uncertainty will continue.

Budapest continued growing as we had hoped, based on economic fundamentals that should drive further growth in the coming years. The 7.5% vacancy rate is an all-time low.

Bratislava continued to grow as well. With supply at about 90,500 sq m (85,000 sq m in 2017), we saw growth of the total stock at around 6.5%, with vacancies slightly down to 6%.

In Prague, despite a four times higher supply and healthy 4% growth in the total stock, we see vacancies falling to historic levels – in two years they have fallen by half to 5.1%.

Stable development continued in Warsaw as well. With an almost ‘typical’ supply of around 233,000 sq m, we saw healthy 3.4% growth in the total stock accompanied by significant vacancy decreases to 8.7%.


Looking at our portfolio, the share of development in our total investment property is 50%, as targeted. This fact is mainly due to the temporary income generating allocation of One Waterloo for the purpose of IFRS Reporting. Due to the positive investment market, we also saw unique divestment opportunities – and we took them, with an eye on building a strong cash position for the near-term.

In the reporting year, we focused mainly on both speeding up and growing the share of developments in the permit stage and on making progress with our projects in the construction phase. During 2018, the portfolio value of core development property increased by €186m (2017: €211 million) and at year end achieved a value of €1.3bn, representing a 17% year-on-year increase.

The most important factors that contributed to this result were product design, leasing capabilities, progress in permits and construction cost management.

Product design matters and distinguishes us in the market

During our history and through the delivery of almost 800,000 sq m of leasable office space, we have accumulated significant knowledge and experience. We understand why it is so important to talk to clients, identify their needs and wishes and, moreover, incorporate these into our product design process.

Currently, we have around 150 professionals in our dedicated product design team infusing client experience and technical innovations into our products. Recently we’ve focused on the following areas:

If we can, we bring international expertise into our projects. This is why we retained the services of highly acclaimed architectural studios such as Benoy, Foster+Partners, Make Architects, John Robertson Architects and Allford Hall Monaghan Morris for some of our recent flagship and landmark projects. 1
We are transforming ourselves from a fully integrated but ‘standard’ real estate developer into a Workspace as a Service provider. This move is a perfect umbrella for our user-centric related activities such as UX methodology, Origameo, HubHub, Symbiosy, Qubes and More. 2
Each project design is tested, focusing on potential user experience in terms of daylight quality, interactions between dedicated office space and shared spaces (primarily on the ground floor and roof) and the effects of greenery, fresh air and thermal control. 3
We are elevating our sustainability standards and design goals to at least BREEAM ‘Excellent’ and we aspire to comply with WELL standards as soon as feasible. 4

Growing leasing and marketing capabilities

As our pipeline portfolio continues to grow, we’ve invested significant effort and resources during recent years into building our leasing teams across the Group. Over the last two years, we’ve grown our marketing capability so that we can more effectively offer these projects to our clients.

These teams consistently and efficiently use the Group’s know-how that has been accumulated over 25 years.

In terms of the numbers, it was a good year as well. Our leasing teams signed contracts for about 140,000 sq m of GLA, up by roughly 30% compared to 2017.

Despite the challenging situation in some of our markets, we’ve kept our leasing performance at very high levels in recent years (we are number one in both Warsaw and Bratislava). This fact makes us quietly confident that we’ll see similar results for the projects that are currently in our pipeline.

In subsequent years, we expect to deliver between 80,000 and 130,000 sq m GLA office space annually, which is why our leasing capability and performance continue to be a crucial factor in our potential future success.


10%United Kingdom37%Poland1%Czechia38%Slovakia14%Hungary
10%United Kingdom
Leasing Activity according to GLA
United Kingdom

Permits are one of the most important contributory factors to value creation in our development activities. Last year, we saw some delays in this area, but it continued to improve slightly.

In particular, we achieved remarkable progress on our Burakowska project in Warsaw and our Prenzlauer Hoefe project (DSTRCT.Berlin).


Efficient construction is a way of life at HB Reavis, not least because it has the potential to differentiate us in the market. We are consistently and systematically focused on reducing costs by collaborating with our specialised procurement team and local construction management, all without compromising the quality of projects.

In the reporting year, we continued our strategic project to integrate selected supply chain partners into our development process, from product design (including 3D project documentation) through to delivery on the construction site. Another strategic initiative is the global sourcing of our construction deliverables. Both are crucial to enhancing our competitiveness and value creation for all stakeholders.

Geographically, the structure of our whole development portfolio is shifting towards western countries, where the UK and Germany represent almost 40% of the future value in our pipeline. At year end 2018, the share of UK assets represented 34% of the whole portfolio, Poland 19%, Czechia 9%, Slovakia 22%, Hungary 9% and Germany 7%, all based on the expected gross development value.

As far as segments are concerned, during 2018 our strategic focus on office development reflects its 93% share of our development portfolio value, while retail accounts for 7% based on gross development value.

Developments in the office segment continued to achieve robust growth, adding around €477m of value and reaching a total of €1.51bn (including completed properties before their transfer to use). In terms of the creation of net value of the required investment to achieve the value growth, office properties contributed €121m (net of the yield shift).

Assets by country
34%United Kingdom

Our strategic plan is to keep our balance sheet on an even keel with the long-term share of the development portfolio of our total investment property at around 50%. Given the situation on the markets, we set this aim aside, utilising the huge appetite of investors for real estate.

The revaluation of our development pipeline portfolio continued to have a material impact on the structure of the balance sheet. The share of our development portfolio (excluding One Waterloo and non-core assets) increased to 50% (2016: 46%).

The development portfolio’s performance and potential are also visible from the three-year moving averages of significant indicators such as volume of acquisitions, construction investment and property exits to further finance our expansion.

GLA m2 ERV GDV Value Change Investment 2018
Retail 105,068 23.0 414.7 45.5 32.5
Office 1,247,781 347.0 6,228.0 476.8 292.3
Total Development 2018 1,352,849 370.0 6,642.7 522.3 324.8
Additions to porfolio 2018 117,165 34 760 154 153
Completions 2018 49,751 19.0 374.8 126.7 31.9
Retail 105,068 23.1 414.7 45.5 32.5
Office 1,198,030 327.8 5,853.2 350.1 260.4
Total Pipeline for 2019 1,303,098 350.9 6,267.9 395.6 292.9

*Figures based on external expert valuations and internal management reports. All figures in €m, except GLA.

2014 – 2016
2015 – 2017
2016 – 2018
Acquisitions volume (€m)Construction investments (€m)Completions (€m)Land/property exits (€m)

* Figures based on external expert valuations and internal management reports.

14 How We Manage Our Assets

Strategically, the Group is focused on achieving and maintaining a balanced share of investment property and assets under development for the longer term. While we retain and manage these assets, we obviously aim to maintain them at top commercial and operational levels so that when we divest, we do so in the best possible conditions.
At the same time, and even more importantly, we aim to provide services that exceed tenants’ and employees’ expectations – mainly by focusing on user-centric design and maintaining long-term client relationships.


Group Income
producing portfolio *
GLA sq m Valuation Rental
ERV Equival.
2016 2017 2018
Asset management
portfolio from 2017
304,426 634 1,003 1,038 42 60 5.92% 5.94% 1.0% 4.2% 5.2%
Retail 22,150 89 90 89 4 5 6.00% 6.00% -0.9% 4.4% 3.4%
Office 282,276 545 913 949 38 55 6.11% 5.93% 1.2% 7.0% 8.1%
Additions to portfolio
in 2018
57,545 74 139 236 0 15 4.94% 4.87% 49.4% 0.0% 108.6%
Property exits
in 2018
86,519 254.9 283.8 292.2 10.9 17.4 5.86% 5.86% 2.1% 3.8% 6.0%
Asset management
portfolio for 2018
361,971 708.2 1, 286.4 1,273.9 52.9 75.0 5.90% 5.74% 1.2% 7.5% 8.7%

*Including our divested projects
**Figures based on external expert valuations and internal management reports.


15 Financial Review

Financial review Performance Value creation Revaluation gain Business lines contribution Cash flow management Financing Divestment Risk management

Workspace as a Service and the increasing deployment of analytical data are leading the changes in real estate trends. Collaboration, flexibility in terms of space – as well as duration and technological advancement – are tenants’ key requirements for the way they use space.

These changes are forcing real estate players to adopt new business models, or at least new business lines involving higher complexity. They also present new challenges for financial strategies. We’re working hard to adopt a business model that addresses all these challenges in a proactive way and adjusting our financial strategy to support it.


In terms of overall performance, in 2018 we delivered better financial results than in 2017.

Obviously, the main driver was a revaluation gain of €194.8m over the year, up from €95.2m in 2017. At €38.0m, net operating income, in line with our expectations, was down slightly (2017: €38.7m).

Disposal of subsidiaries decreased somewhat to €21.8m (2017: €25.8m). Bottom line: we achieved a total comprehensive income of €102.1m (2017: €96.5m). To support our growthwe also grew in personnel. Primarily, we welcomed people to the business in Germany, but we’re also adding some product design related head-office positions so we’re ready for further growth.

In terms of the operating profit, the group achieved €197.9m.

The Group balance sheet increased to almost €2.35bn. Adjusted net asset value increased by a modest 5.5% year-on-year and reached €1.34bn. In terms of the 8.5% return on shareholders’ equity, we were not able to deliver the 15% long-term target level.

In contrast to the previous year, our net debt leverage ratio return was much closer to the targeted level of 35%. It was 30.5%, up from 26.8% in 2017.

Net profit
Total comprehensive
Net rental income
Revaluation gain
NAV (adjusted)
Shareholders‘ return
Net Debt Leverage Ratio
€m 2014 2015 2016 2017 2018
Assets 1,806.1 2,089.3 2,112.3 2,294.8 2,349.9
Cash 155.3 115.4 316.4 279.1 173.8
Borrowings 634.4 736.3 683.0 893.0 891.5
Net Debt Leverage Ratio 26.5% 29.7% 17.4% 26.8% 30.5%


*Including borrowings presented in the consolidated balance sheet as liabilities directly associated with non-current assets classified as held for sale. Excluding borrowings in JV.

Net operating income from Investment Properties (€m)
Revaluation gains
Investment portfolio yield (%)
Net operating income from Investment Properties (€m)
Revaluation gains
Investment portfolio yield (%)
Group profit decomposition (€m)
Net rental income
Revaluation gain
Other income
Gross oper. income
Operating costs
Depreciation and amortisation
Operating profit
Financial operations
Profit before tax
Net profit
Other comprehensive income
Total comprehensive income

A revaluation gain on investment property resulted in €194.8m (2017: €95.2m) in our pipeline. This represents a significant year-on-year increase of around 105%, driven mostly by the construction progress of our projects in Poland, the UK and Slovakia.

When adjusted for yield shift, the Group achieved a €128.0m (2017: €59.1m) net revaluation gain while the positive yield shift contributed €66.8 million to profits (2017: €36.1 million).

The average investment property portfolio yield decreased by 30 basis points to 5.26% as we continued investments in lower-yield projects in the UK and Poland and enlarged our investments in Germany. Income producing assets, primarily driven by higher yielding Slovak assets, were valued at 5.74% at the end of 2018.

The average valuation yield of our development properties, now more heavily weighted to UK and Polish assets, was also down by 25 basis points to 4.79%.

As our strategy in the mid-term is to keep and manage our assets longer after they become mature, the growth potential for our net operating income could be higher in the coming years.

In terms of contributions made by our business lines to the overall return on shareholders’ equity, the main drivers were both the development portfolio with a high ROE of 20.8% (2017: 7.8%) and income producing property with an ROE of 9.0% (2017: 9.9%). The ROE of our non-core portfolio lagged behind with -3.5% as did cash at -0.8% at the end of 2018.

Note 1: Projects completed in 2018 included in ‘Property Under Development.
Note 2: Segment results based on profit before tax (excluding the translation of foreign operations to the presentation currency).
Note 3: Return to shareholders includes dividends paid out.
Note 4: Investment property value reflected in the calculation above represents HBR’s share on properties’ fair market value.
Property under development
Return to shareholders
Income producing property

In 2018, there was no significant change in the behaviour and appetite of financial institutions that finance real estate projects.

The financing market offered reasonable conditions on loan-to-cost ratio and pricing and the ability to deploy debt funding at earlier stages of the development phase was favourable. These conditions were the same across all our markets except for London, where Brexit prompted financial institutions to reconsider financing speculative office development.

We tried to take advantage of this positive trend to support our growing development operations. As always, we continued to manage cash flow responsibly, prudently and according to proven guidelines:

  • Managing financing and investment decisions so that the overall position of our cash reserves plus undrawn committed credit lines remain at a minimum of 5% of the total consolidated balance sheet.
  • Preparing regular monthly and quarterly reviews of the consolidated cash flow forecast with a three to five year forecast, including quarterly stress tests for different markets and macro-economic scenarios.

In line with our growth strategy, our annual investment in the construction and acquisition of new plots exceeded €400m in 2018.

Our investment in acquisitions during the reporting year decreased to €157.8m. As far as investment in construction is concerned, the amount increased to €245.7m. For the coming years, we plan to keep the amount of investment at around €400m – €500m.

Cash flows 2014 2015 2016 2017 2018
Cash beginning of period (BOP) 49.9 155.3 115.4 316.4 279.1
Operating cash flow 20.6 24.3 30.6 -67.4 -6.6
Land/property acquisitions -56.7 -40.0 -76.0 -300.4 -157.8
Construction investments -122.6 -215.5 -244.9 -201.5 -245.7
Land/property exits 88.0 13.5 162.6 23.4 169.7
Other investments -10.8 -8.1 -1.4 -2.8 -3.3
Investment cash flow -102.1 -250.1 -159.7 -481.3 -237.1
Borrowings change 200.7 244.9 379.1 541.2 185.3
Dividends/equity contributions -13.8 -59.0 -49.0 -29.8 -46.9
Financing cash flow 186.9 185.9 330.1 511.4 138.4
Cash end of period (EOP) 155.3 115.4 316.4 279.1 173.8
Share of cash on total assets 8.6% 5.5% 15.0% 12.2% 7.4%


Note: Figures based on audited consolidated financial statements and internal management reports. For the complete cash flow see the Consolidated Statement of Cash Flows in the Consolidated Financial Statements. Land/property exits are presented net of related investment loans repaid in relation to exit.

The reporting year was another of strong financing activity for HB Reavis, mainly in project financing. In 2018, the Group financing activities focused mostly on securing development financing for major schemes under construction that were successfully accomplished. For example, loans for Nivy Station and Nivy Tower were signed and both Varso Place and Agora Budapest project loans were approved by lenders and are in the stage of documentation negotiations. Despite having no new issuances on debt capital markets, HB Reavis continued monitoring the market for opportunities and established a new bond issuance programme in Slovakia allowing for new issuances in 2019.


The real estate industry has been slow to adopt new trends and technologies, while many other fields have experienced significant transformations in the new age of technological disruptors and business innovations. The main reason for the lagged innovation is the unwillingness of large real estate market players to make dramatic changes to the way they are doing business (i.e. development, leasing, asset management), which has proved to be largely successful in the past. However, the disruptive effects of new tech solutions, along with the changing demands of key stakeholders, are already starting to impact the real estate business, favoring those who have the means and motivation to innovate.


The Group is exposed to the risks that are part of the general commercial environment, as well as various business-specific risks. An inherent part of the Group’s business management is the emphasis on their identification and monitoring.

Where possible, we deploy proactive mitigation tools to manage any risks that could have a material impact on our business.


Consolidated Financial Statements

Read the Consolidated Financial Statements

View or download our annual reports


Find out how we performed in previous years. Have a look at our financial highlights or download whole annual reports in PDF

Privacy policy Privacy Management

© 2023 - HB Reavis, All rights reserved.
facebook twitter linkedin youtube instagram

The purpose of the Annual Report is to provide information to the members of the Group. The Group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this document is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. The Annual Report contains certain business, financial, numerical or technical information and forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances (such as successful closing of acquisitions, permitting, construction delivery, commercialisation or actual market conditions) can cause results and developments to differ from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this Annual Report. Nothing in this Annual Report should be construed as a profit forecast.

Whilst the Company has taken reasonable care to ensure that the information on this website (other than information accessed by hypertext link) is accurate at the time of last revision of the website, the Company accepts no liability for the accuracy or completeness or use of, nor any liability to update, the information contained on this website. It should not be construed as the giving of advice or the making of a recommendation and should not be relied on as the basis for any decision or action. In particular, actual results and developments may be materially different from any forecast, opinion or expectation expressed on this website. Certain information on this website is of a historical nature and may now be out of date. All historical information should be understood as speaking from the date of its first publication. Nothing on this website constitutes an invitation or offer to invest or deal in the securities of the Company. This website contains certain hypertext‑links to other websites. The Company has not reviewed, is not responsible for, and accepts no liability in respect of, any information or opinion contained on any such other website.

Design by Codes Creative