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 SIG moves to Katowice City Logistics

schedule 26 November 2021

Construction materials supplier SIG, has relocated its Katowice branch with a 2,067 sqm lease of warehouse and office space in City Logistics Katowice.

Material partner

Europe MAPIC returns to Cannes

schedule 20 October 2021
Eurobuild CEE

MAPIC 2021 will be held at the Palais des Festivals from Tuesday, the 30th of November, to Thursday, the 2nd December, 2021

Retail & leisure

Poland Galeria Andrychów opens

schedule 26 November 2021

Galeria Andrychów, the largest retail park delivered this year, has had its grand opening.

Material partner

Sustainable attraction

schedule 08 November 2021

"Our research shows that 65 pct of employees in the CEE region want to work in a certified sustainable office. We expect that tenants will opt to migrate to new buildings that suit their needs better", admits Paweł Warda of Skanska Commercial Development Europe

Office & mixed-use development

Poland IT specialists come to play DL Piano

schedule 26 November 2021

Reply Polska has leased just under 1,000 sqm of office space in the DL Piano building, a 17,000 sqm building developed by DL Invest Group in Katowice.

Investment & finance

CZECH REPUBLIC Apollo takes 5.5 pct of CPI

schedule 26 November 2021
Nathan North
deputy editor

US investor Apollo Global Management has agreed to buy a 5.5 pct stake in Czech developer and landlord CPI Property Group for EUR 300 mln.

Office & mixed-use development

CZECH REPUBLIC Second Port7 phase launched

schedule 26 November 2021
Nathan North
deputy editor

Skanska is investing EUR 20 mln in the second phase of its Port7 mixed-use development in Prague 7 (Holešovice), which has just started.

Warehouse & industrial

POLAND P3 Błonie furnished with tenants

schedule 26 November 2021
Opr./edited by NN

Warehouse developer P3 has started the construction of the second part of warehouse number 17 in its P3 Błonie park outside Warsaw, which will have an area of more than 21,380 sqm.

Warehouse & industrial

Poland Spiżarnia takes 22,000 sqm in Lublin

schedule 25 November 2021

Spiżarnia, a company that exports food to Western Europe has leased office and warehouse space, including three refrigeration units, in 7R Park Lublin.

Retail & leisure

Poland Vendo Park opens in Chorzów

schedule 25 November 2021

Trei Real Estate Poland has opened a retail park on ul. Szpitalna in Chorzów.

Investment & finance

WORLD Mindspace raises EUR 72 mln for expansion

schedule 25 November 2021
Opr./edited by NN

Israeli flex office provider Mindspace has secured funding of EUR 72 mln to continue its expansion in Europe, the United States and Israel.

Warehouse & industrial

POLAND Optics good for Panattoni Kraków East II

schedule 25 November 2021
Opr./edited by NN

Polish optical fibre specialist FCA has leased more than 5,300 sqm in Panattoni Park Kraków East II.

Investment & finance

ROMANIA CA Immo mulls Romanian sell-off

schedule 25 November 2021
Nathan North
deputy editor

Austrian real estate investor CA Immo is considering the potential sale of its entire Romanian portfolio.

Eurobuild CEE

Poland What's wrong with our LinkedIn page?

schedule 24 November 2021
Eurobuild CEE

We have noticed that many of our readers follow and tag our former, now inactive profile on LinkedIn – this page was deactivated some time ago.

Property and Facility Management

POLAND Savills takes on leases for Marynarska Point

schedule 24 November 2021
Opr./edited by NN

Savills has been appointed as the exclusive leasing advisor for the Marynarska Point I office building in Warsaw’s Mokotów district.

Retail & leisure

Poland Three acquisitions for LCP

schedule 24 November 2021

The LCP Group has just finalised the purchase of three retail parks in Bytom, Góra Kalwaria and Plewiska near Poznań.

Warehouse & industrial

SLOVAKIA Garbe begins work on Piešťany park

schedule 24 November 2021
Opr./edited by NN

German developer Garbe Industrial Real Estate has begun work on a logistics park in Piešťany in Slovakia’s western Trnava region.

Warehouse & industrial

Czech Republic Forklift factory in Chomutov

schedule 24 November 2021

Handling equipment supplier Jungheinrich is to build a 37,000 sqm forklift truck factory in Panattoni Park Chomutov North.

Office & mixed-use development

Poland Vacancy rates rise

schedule 24 November 2021

The office development pipeline in Poland’s largest cities comprises 1.08 mln sqm to be completed by the end of 2024, according to Cushman & Wakefield.

Warehouse & industrial

Germany MLP to build in Gelsenkirchen

schedule 23 November 2021

MLP has purchased an 11 ha brownfield industrial site in Gelsenkirchen and is to develop Business Park Schalke comprising 55,000 sqm of warehouse space.

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