Certainty, this is what institutional investors require as far as income
stream from potential investment properties is concerned. In this article,
we would like to highlight a problem which arises from the potential application
of Article 475 of the Polish Civil Code, which could possibly undermine
that certainty in Poland.
Over the past ten years, institutional investors have been paying close
attention to the possibility of investing in property in Central and Eastern
Europe. In cases where countries in the region have been able to reform relevant
laws, so that certainty and security of income stream from investment property
can be guaranteed, investors have been able to acquire and develop such property.
When countries in the region have not been able to create the legal and
commercial framework for such investments, institutional investors have stayed
away. As things stand, there is not a great deal of institutional investment in
property, in all of