PL

Catella sees hope and chances for real estate after Covid-19

Coronavirus
WORLD Real estate could actually benefit from the Covid-19 pandemic in the long run due its perception as a safe haven for investors, according to a report just published on the implications of the epidemic for the market by Swedish property consulting and fund management specialists Catella.

According to Catella's latest 'Market Tracker' report, the short term impact of rent payment defaults are likely to lead to loss of earnings and revaluations across the market. While stressing that nothing can be predicted with any certainly right now, the report points out that the longer the lack of liquidity, interrupted cash flows and the additional costs due to the epidemic continue, the greater the negative effects will be. These include falling rents and increased risk premiums. In turn, this will lead to more intensive differentiation between types of property use with more attention being paid to their crisis stability and flexibility. Risk spreads between the different types will therefore increase.

But despite these problems, Catella suggests that “potential value changes offer the ‘buying opportunity of the century’, especially for opportunistic investors. Global RE dry powder capital increased to more than USD 300 bln in 2019, of which a large part can be allocated to opportunistic and distressed asset funds. As soon as they become more active in the market, we see a rising dynamic which will spread to core investors.”

In terms of how each sector emerges from the pandemic, the report argues that logistics, although boosted by the surge in e-commerce activity since the outbreak of the crisis, will also have to adapt to disrupted supply chains. Retail, one of the most seriously impacted sectors due to the forced closures of stores and thus the greater risk of bankruptcies, should experience a sharp rise in private consumption due to the pent up demand once the restrictions are fully lifted. Hotels, another sector suffering from the impact of forced closures, should recover in the second half of the year – but mainly due to domestic tourism. The office market, being more cyclical in nature is therefore more stable than others – but it will nevertheless be impacted by rent deferrals. Residential is more immune to shocks than other segments, being more influenced by long term demographics, and so should remain relatively unscathed. While the development sector, where new projects have been frozen, will find that financing for speculative projects is much harder to obtain.

The report ends on an optimistic note, however: “Megatrends such as urbanisation or digitalisation are shaping the market too strongly. In the coming months, the market will also experience a new efficiency dynamic. We dare to assert that a relatively rapid recovery will set in again on the central real estate markets.”




Latest news

Warehouse & industrial

POLAND Huge robotised Amazon centre to open in Moravia

schedule 17 September 2021
Nathan North
deputy editor

Panattoni and investment partner Accolade are to build a 190,000 sqm fulfilment centre in the Czech Republic for Amazon near Kojetín in the Olomouc region of Moravia.

Material partner

Poland It's a comfortable life

schedule 31 August 2021
Eurobuild CEE

Ziv Zviel, the CEO of Atlas Estates, tells ‘Eurobuild’ about the company’s plans for the residential sector, top investments and the future of the market

Retail & leisure

POLAND Griffin RE sells EUR 87 mln retail portfolio

schedule 17 September 2021
Nathan North
deputy editor

Polish investment manager Griffin Real Estate has completed the sale of a 107,600 sqm retail portfolio for EUR 87 mln to an undisclosed buyer.

Eurobuild Awards

Poland Tricks and tips in the run-up to the Gala

schedule 16 September 2021
Eurobuild Conferences

After a long and unexpected break, we are finally goingto be able to meet upat a live event – and not just going to be any event, but the Eurobuild Awards Gala!

Office & mixed-use development

POLAND Zaułek Piękna still attracting tenants

schedule 15 September 2021
Opr./edited by NN

Mazars has renewed its lease of 2,055 sqm in the Zaułek Piękna in central Warsaw, while 6B47 and Trend Energy Solutions have become new tenants of the office building.

Office & mixed-use development

POLAND A4BEE in Wojdyła BP

schedule 15 September 2021
Opr./edited by NN

Tech start-up A4BEE has leased 600 sqm of office space in Wojdyła Business Park in Wrocław.

Warehouse & industrial

CZECH REPUBLIC Doosan Bobcat to open Beroun warehouse

schedule 15 September 2021
Opr./edited by NN

Panattoni, together with investor Accolade, is preparing a 13,541 sqm warehouse for Doosan Bobcat in Zdice, about 45 km southwest of Prague city centre, in the Beroun district.

Warehouse & industrial

POLAND MDC2 Park Łódź South on its way

schedule 15 September 2021
Opr./edited by NN

Polish warehouse and industrial developer MDC2 has secured a site for the development of a 65,000 sqm distribution centre south of Łódź.

Investment & finance

POLAND Adventum to buy Sky Tower skyscraper

schedule 14 September 2021
Eurobuild CEE

Adventum Group has signed a preliminary contract to buy all the shares owned by Develia in the Sky Tower office skyscraper in Wrocław for PLN 84.4 mln. The price will be reduced by the value of unsettled incentives for tenants, with the transaction set to be finalised by the end of this year.

Warehouse & industrial

POLAND 10 ha added to MLP Poznań West

schedule 14 September 2021
Opr./edited by NN

Polish industrial developer MLP Group has added a further 10 ha to the land bank of its MLP Poznań West project, bringing its target area up to around 150,000 sqm.

Warehouse & industrial

POLAND Martes Sport to move into 7R BTS Beskid III

schedule 14 September 2021
Opr./edited by NN

Polish sports store chain Martes Sport has leased 21,000 sqm of warehouse space in 7R BTS Beskid III Czechowice-Dziedzice just north Bielsko-Biała in Silesia.

Retail & leisure

CZECH REPUBLIC Trigea acquires Moravian retail parks

schedule 13 September 2021
Nathan North
deputy editor

Czech real estate fund Trigea has bought two retail parks in Moravia for an undisclosed sum.

Investment & finance

HUNGARY MNK Partners enters Hungary

schedule 13 September 2021
Opr./edited by NN

French real estate investor MNK Partners has bought a building of the Kodolányi János University on Frangepán utca in Budapest XIII, just north of the city centre.

Warehouse & industrial

ROMANIA CTP scoops up 112,000 sqm of Romanian warehousing

schedule 13 September 2021
Nathan North
deputy editor

Czech warehouse developer CTP has acquired around 112,000 sqm of industrial space in four Romania cities from Sibiu-based Zacaria Industrial Parks.

Hotels

POLAND From Sofitel to Mogotel in Wrocław

schedule 13 September 2021
Nathan North
deputy editor

The Sofitel Wrocław Old Town, which was closed down permanently due to the pandemic, is to reopen as a Wyndham hotel after a new operator – Latvian company Mogotel – was secured for the hotel.

Warehouse & industrial

POLAND Frontier crossed into Poland

schedule 09 September 2021
Nathan North
deputy editor

London-based Frontier Estates, through its Polish subsidiary, has begun its first project in Poland – Frontier Park Wrocław, an SBU warehousing park in Bielany Wrocławskie on the southern outskirts of the city.

Warehouse & industrial

POLAND Panattoni completes Kalisz plant for Leviat

schedule 09 September 2021
Nathan North
deputy editor

Panattoni has completed a 40,000 sqm production plant in Kalisz in central Poland for construction sector solutions specialist Leviat.

Events

POLAND Elektrownia Powiśle a world-beater

schedule 09 September 2021
Nathan North
deputy editor

Elektrownia Powiśle in Warsaw has been voted the world’s best mixed-use development at the MIPIM Awards, which have just been held in Cannes.

Investment & finance

HUNGARY Investum buys another Budapest office building

schedule 09 September 2021
Nathan North
deputy editor

The Árpád Center office building in Budapest has been sold by ConvergenCE to local investor Investum for an undisclosed sum.

Events

POLAND The 11th Eurobuild Awards Gala on September 30th!

schedule 08 September 2021
Eurobuild CEE

Soon we will all be able to meet again at the most important real estate event of the year – the Eurobuild Awards Gala! We will be waiting for you on Thursday, September 30th, at the DoubleTree by Hilton hotel in Warsaw’s Wawer district. Once again, we will be honouring the most outstanding people, projects and companies on the property market!

Latest in Coronavirus

schedule 30 March 2021

Vaccination centre provided by Globalworth

The Globalworth Foundation has provided the authorities in Bucharest with office space for a Covid vaccination centre.

schedule 24 June 2020

Employers in no rush to return to workplaces

Almost three quarters of employers plan to reintroduce their employees to their workplaces in phases rather than all at once, according to CBRE in its global survey on return-to-work strategies after the Covid-19 pandemic.

schedule 14 May 2020

Catella sees hope and chances for real estate after Covid-19

WORLD Real estate could actually benefit from the Covid-19 pandemic in the long run due its perception as a safe haven for investors, according to a report just published on the implications of the epidemic for the market by Swedish property consulting and fund management specialists Catella.

schedule 14 May 2020

Build Europe pushes post-coronavirus action plan

EUROPE Build Europe, an umbrella organisation for EU-based residential developers and constructors, has presented its recommendations for helping the sector in the EU emerge from the post-Covid19 economic crisis.

schedule 14 May 2020

Polish RE lends an even greater hand to fight the pandemic

POLAND More companies have joined # Property4Heroes - the commercial real estate market's initiative to support hospital staff and ambulance crews across Poland. Each day the initiative delivers 1,150 meals to physicians, nurses, paramedics and support personnel.

schedule 07 May 2020

Panattoni to provide PLN 0.5 bln worth of medical supplies

POLAND Warehouse developer Panattoni has allocated PLN 500,000 to buy medical supplies for three Polish hospitals.

schedule 14 April 2020

Landlords underwhelmed by emergency relief

CEE REGION Preliminary CEE investment volumes for Q1 2020 amounted to app. EUR 3.7 bln, despite the onset of Covid-19 in the region in early March – according to Colliers International’s latest research report.

schedule 14 April 2020

Toyota prepares to reopen Polish plants

EUROPE Toyota Motor Corporation has announced the partial resumption of operations in its European manufacturing plants, which have been closed due to the coronavirus epidemic.

schedule 08 April 2020

AFI Braşov now to open in the autumn

ROMANIA AFI Europe Romania has announced that it is rescheduling the opening of its AFI Braşov shopping and entertainment centre due to the pandemic.

schedule 08 April 2020

Aleja opening postponed

SLOVENIA The official opening of the Aleja shopping centre in Ljubljana’s Šiška district has been postponed.

schedule 07 April 2020

BPI opens virtual sales office

POLAND BPI Real Estate Polandis to introduce a virtual sales office for all of its Polish projects.

schedule 07 April 2020

Rent suspension in Sukcesja

POLAND Rent payments have been suspended for all tenants in the Sukcesja shopping centre in Łódź.

schedule 03 April 2020

Retailers join the fight

POLAND The Polish Trade and Distribution Organisation [POHiD], an association of retail chains, are to contribute PLN 15 mln to fight the coronavirus epidemic.

schedule 02 April 2020

Carrefour donates PLN 2 mln to fight pandemic

POLAND The Carrefour Foundation and Carrefour Polska are donating around PLN 2 mln to Polish hospitals for the fight against the coronavirus pandemic.

schedule 01 April 2020

Pay no rent in Sukcesja

POLAND The Sukcesja shopping centre owned by Fabryka Biznesu in Łódź has stopped collecting rents from its tenants.

schedule 31 March 2020

Government takes on board PRCH recommendations

POLAND The range of temporary trading restrictions in Polish retail buildings above 2,000 sqm imposed by the Ministry of Health has been clarified after consultations with the Polish Council of Shopping Centres [PRCH] and the Ministry of Development.

schedule 31 March 2020

Rent holiday for CCC and Ultro tenants

POLAND Dariusz Miłek, the president of footwear and accessories retailer CCC and Ultro Holding, the owner and manager of Cuprum Arena in Lubin and Korona in Kielce, has decided to cancel rent collections from tenants whose outlets have been forced to close during the Covid-19 emergency.

schedule 31 March 2020

Develia fears Covid-19 impact on business

POLAND Wrocław-based developer Develia (formerly LC Corp) has announced that the disruption caused by the pandemic could have a significant and potentially serious impact on the current operations of the company and its groups.

schedule 31 March 2020

Economies rebalance in wake of coronavirus

CEE REGION According to analysis by Colliers International all CEE economies this year are to decline or fall into recession as a result of the coronavirus.

schedule 30 March 2020

Movement and gatherings ban tightened further

POLAND The Polish government has introduced a new directive clarifying the restrictions on movement as part of its measures to combat the Covid-19 pandemic.

Categories