Investment Increasing in Central Europe Property

Investment Increasing in Central Europe Property

Commercial News » Europe Commercial News Edition | By Francys Vallecillo | July 5, 2013 9:37 AM ET

Investment activity in commercial property in the core Central European markets totaled €1.73 billion during the first half of 2013, a 24 percent increase from the same period last year. 

The core markets of Poland, Czech Republic, Slovakia, Hungary and Romania reported 52 transactions completed, compared to 31 last year, according to the latest numbers from Cushman & Wakefield. 

Poland led the region in investment activity with 72 percent of investment during the second quarter, with the Czech Republic and Slovakia each recording €100 million.

"Whilst activity in the first half of 2013 was somewhat predictable, with Poland dominating, the real interest is in the coming six months," Charles Taylor, partner at Cushman & Wakefield, said in a release. "We expect positive news to emerge shortly regarding closed transactions in the Czech Republic and possibly Hungary too." 

During the second quarter, the office sector reported 50 percent of the investment activity, outperforming the retail sector for the fifth consecutive quarter. The logistics sector had just 10 percent of investment volumes, a decline from the previous two quarters. 

Notable transactions included the Union Investment's purchase of the Senator office building in Warsaw, Unibail-Rodamco's purchase of the City of Warsaw's holding in Zlote Tarasy Shopping Center, Warsaw and Ceska Pojistovna's purchase of Apollo Business Center IV in Bratislava, C & W reports. 

The region has a number of signed transactions, not yet closed, including the Silesia City Center, Katowice, Poland for €412 million; Galeria Dominikanska, Wroclaw, Poland for €151.7 million; and the Charter Hall Portfolio, (Szczecin, Wroclaw, Gliwice, Katowice, Krakow), Poland for €174.5 million. 

These transactions are expected to increase the investment volumes in the next six months and help push activity past last year's total volume of €3.8 billion.

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