Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

Central Europe investment volumes increase

Click to Enlarge

According to global property adviser Cushman & Wakefield investment activity in the core Central European markets of Poland, Czech Republic, Slovakia, Hungary and Romania maintained momentum with €631 million invested in Q2, ahead of the same period last year. Year to date some €1.73 billion has been invested in the region, up 24% on H1 2012, with 52 transactions completed compared with 31 for the same period last year. Given the significant pipeline of transactions that are signed but not yet closed, year end volumes are expected to exceed 2012 levels.

Commenting on the level of activity in H1 2013, Charles Taylor, Managing Partner at Cushman & Wakefield in Poland, added: “Whilst activity in the first half of 2013 was somewhat predictable, with Poland dominating (€1.09 billion invested in Poland in H1 2013), the real interest is in the coming 6 months with several significant transactions still to be closed and a number of large assets offered in the marketplace. We expect positive news to emerge shortly regarding closed transactions in the Czech Republic and possibly Hungary too.”

Poland continues to lead the region, attracting almost 72% of investment during Q2 with both the Czech Republic and Slovakia each only attracting close to €100 million. Romania and Hungary experienced no significant investment deals in the last quarter, although investment into Hungary in Q1 2013 was relatively high at €159 million.

Investors preference for the office sector continued, attracting 50% of the investment volumes in Q2 2013 and outperforming the retail sector for the past five consecutive quarters. Activity in the logistics sector declined compared with the previous two quarters, attracting just 10% of investment volumes.

“Due to increasing investor demand for Polish core office and logistics products, we expect a number of transactions to close during H2 2013 at quite aggressive yields”, added Soren Rodian Olsen, Head of Office & Industrial Investments at Cushman & Wakefield in Poland.

Notable transactions included Union Investment’s acquisition of the Senator office building in Warsaw, Unibail-Rodamco’s acquisition of the City of Warsaw’s holding in Zlote Tarasy Shopping Center, Warsaw and Ceska Pojistovna’s acquisition of Apollo Business Center IV in Bratislava. Bluehouse and Standard Life also made acquisitions during Q2.

Within the region a number of significant transactions have signed, but not yet closed and these are expected to increase investment volumes in the second half of the year. These include;

Silesia City Center, Katowice, Poland - €412 million

Galeria Dominikanska, Wroclaw, Poland - €151.7 million

Charter Hall Portfolio, (Szczecin, Wroclaw, Gliwice, Katowice, Krakow), Poland - €174.5 million

Commenting on the prospects for the remainder of the year, Taylor added: “We expect to exceed last year’s total volume of €3.8 billion given the pipeline of transactions, availability of quality investment product and continued investor interest in the region.”

wykres 1

Source: Cushman & Wakefield

wykres 2

Source: Cushman & Wakefield

wykres 3

Source: Cushman & Wakefield