POLAND Strong H1 volumes despite the virus

EUR 1.3 bln of the total was invested in office properties in H1. In the second quarter, the most blighted by the pandemic, EUR 710 mln was invested in office acquisitions alone. Meanwhile, the industrial sector had its best ever H1 volume with a total of EUR 1.1 bln. However, the consultancy admits that product availability may become an issue for the latter segment.

The first half of the year saw the completion of 21 office investment transactions (38 buildings), with the top three being the sale of High5ive 4 and 5 in Kraków by Skanska to Credit Suisse, Wola Center in Warsaw by Develia to Hines and Equal Business Park in Kraków by Cavatina to Apollo Rida. The acquisition of a majority stake in GTC, which has a portfolio of office buildings and shopping centres in Poland, by Hungarian investor Optimum Ventures Private Equity Fund had a significant impact on the volume.

In the industrial sector, 14 investment transactions took place involving 40 buildings, with the largest being the sale of Panattoni’s portfolio of five facilities to Savills Investment Management. Meanwhile, Hines sold its distribution parks to CGL and Apollo sold its Maximus portfolio of six properties to GIC.

In the retail sector almost EUR 430 mln was transacted, and EUR 40 mln in the residential segment.

The lockdown made it very difficult to commence new transactions, because travelling, property visits and technical inspections were impossible. However, their remaining stages could be successfully carried out virtually. Many of the transactions that were in progress at the beginning of the lockdown have already been finalised or are scheduled for finalisation in the coming weeks and months. Since it is again possible to cross borders, foreign investors are arriving in Warsaw and business is slowly returning in the shape of meetings, inspections and direct negotiations. We expect that the second half of the year will be even more intense.
Agata Sekuła, the vice-president of JLL Poland