C&W reports record investment for 2017

All CEE countries grew at a similar rate and maintained their share of the overall regional volume. Despite political risk perceptions, Poland grew most rapidly at 9 pct y-o-y from app. EUR 4.6 bln to EUR 5bln, which was the highest investment volume recorded in the last ten years.

Foreign investors from North America, Asia and South Africa dominated the market, followed by German and Austrian buyers. Domestic and regional capital also increased their market share.

In 2017, commercial real estate investment activity in CEE reached EUR 5 bln in Poland, EUR 3.3 bln in the Czech Republic, EUR 1.8 bln in Hungary, EUR 1 bln in Romania, EUR 876 mln in Bulgaria and EUR 470 mln in Slovakia. The lowest yields were in the Czech Republic, standing at 4.25 pct for retail assets, 4.6 pct for office and 5.75 pct for industrial, coupled with strong investment volumes.

In Poland, the retail sector Saw the most investment with EUR 1.9 bln, followed by approximately EUR 1.4 bln in the office sector. The warehouse market accounted for almost EUR 900 mln, while app. EUR 850 mln was invested in both the hospitality and mixed-use sectors each. Industrial and hospitality yields stood at 6.75 pct and 6.5 pct, respectively, with retail and office yields at 5 pct and 5.25 pct, respectively.

“In Q1 2018, investment volumes are likely to surpass EUR 3bn, benefiting from deals closed in late 2017,” said James Chapman, partner in the capital markets group of Cushman & Wakefield.

“ Largest regional transactions in 2017:

• CIC’s acquisition of Logicor’s warehouse portfolio, which was the largest industrial transaction in Poland in 2017 (Cushman & Wakefield advised the buyer)
• Union Investment’s acquisition of the Magnolia Park shopping centre in Wrocław for approximately EUR 380m, the largest retail transaction in Poland in 2017 (Cushman & Wakefield advised the buyer)
• Disposal of IKEA’s retail park portfolio (Cushman & Wakefield advised the vendor)
• RREEF’s acquisition of a portfolio of Fashion House outlet centres (Cushman & Wakefield advised the buyer)
• Reico’s acquisition of the Galeria Słoneczna shopping centre in Radom for approximately EUR 160m, the second largest single asset transaction on the Polish retail market in 2017 (Cushman & Wakefield advised the buyer)
• Globalworth’s acquisition of a majority stake in Griffin Premium Real Estate
• Disposal of a portfolio of 11 retail properties in the Czech Republic, Poland, Romania and Hungary by CBRE Global Investors for approximately EUR 650m (Cushman & Wakefield advised the vendor)