According to Cushman & Wakefield, investment activity in the key Central European markets of Poland, Czech, Slovakia, Hungary and Romania was maintained in the first quarter of 2013 with €958 million invested, some 6% above the 5 year average. Whilst down on the previous quarters €1.826 billion, positive investor sentiment and underlying activity suggests investment volumes for the year should match those achieved in 2012.
Commenting on the level of activity in Q1 2013, Charles Taylor, Partner at Cushman & Wakefield added “Investor activity has increased marginally. Some investors are considering taking more risk and reviewing the more developed and relatively mature parts of CE and finding not just a yield advantage and better relative economic growth than in the west, but also an improving level of liquidity”.
Investment volumes in Poland, Czech and Hungary were increased by some €258 million following Norges joint venture with Prologis in respect of a portfolio of high quality distribution facilities. This single transaction represents 50% of the total investment into the industrial sector across CE during 2012.
Despite a significant part of the Prologis / Norges portfolio being located in Poland, this market saw volumes decline in Q1 2013 with €465 million invested compared to €818 million in Q1 2012 and €618 million in Q1 2011. The Czech market saw a recovery in Q1 with 6 transactions closed and volumes up at €237 million, compared with just €20 million for the same period in 2012. Similarly, Hungary attracted €159 million in Q1 2013, significantly up on the same period in 2012.
Investors sector preference remained in the office sector with some €646 million invested into offices with significant transactions including the purchase of New City in Warsaw by Hines, PZU’s purchase of Skanska’s Green Towers in Wroclaw and the purchase of Andel Park B in Prague by GLL. Allianz, Invesco, NEPI, Kulczyk Silverstein Properties and Hannover Real Estate also made investments into the office sector in this quarter. Retail investment activity by contrast was at its lowest since 2009, with the only notable transaction being Blackstone’s acquisition of Galeria Leszno in Poland.
Commenting on the prospects for the remainder of the year, Taylor added “We remain optimistic for the region, evidenced by a strong pipeline of transactions in due diligence. Investor demand continues to be patchy, being country and sector focused with an emphasis on core product located in liquid markets. That said, we are encouraged to see activity returning to the Czech market, partly as a result of some re-pricing”.
Commenting on the level of activity in Q1 2013, Charles Taylor, Partner at Cushman & Wakefield added “Investor activity has increased marginally. Some investors are considering taking more risk and reviewing the more developed and relatively mature parts of CE and finding not just a yield advantage and better relative economic growth than in the west, but also an improving level of liquidity”.
Investment volumes in Poland, Czech and Hungary were increased by some €258 million following Norges joint venture with Prologis in respect of a portfolio of high quality distribution facilities. This single transaction represents 50% of the total investment into the industrial sector across CE during 2012.
Despite a significant part of the Prologis / Norges portfolio being located in Poland, this market saw volumes decline in Q1 2013 with €465 million invested compared to €818 million in Q1 2012 and €618 million in Q1 2011. The Czech market saw a recovery in Q1 with 6 transactions closed and volumes up at €237 million, compared with just €20 million for the same period in 2012. Similarly, Hungary attracted €159 million in Q1 2013, significantly up on the same period in 2012.
Investors sector preference remained in the office sector with some €646 million invested into offices with significant transactions including the purchase of New City in Warsaw by Hines, PZU’s purchase of Skanska’s Green Towers in Wroclaw and the purchase of Andel Park B in Prague by GLL. Allianz, Invesco, NEPI, Kulczyk Silverstein Properties and Hannover Real Estate also made investments into the office sector in this quarter. Retail investment activity by contrast was at its lowest since 2009, with the only notable transaction being Blackstone’s acquisition of Galeria Leszno in Poland.
Commenting on the prospects for the remainder of the year, Taylor added “We remain optimistic for the region, evidenced by a strong pipeline of transactions in due diligence. Investor demand continues to be patchy, being country and sector focused with an emphasis on core product located in liquid markets. That said, we are encouraged to see activity returning to the Czech market, partly as a result of some re-pricing”.
