Europe Investors catch their breath

Logistics assets remained a key area of focus amid steady growth in e-commerce and the supply chain constraints that appeared with the pandemic. Although investors remain cautious on hard-hit retail and hospitality properties, activity is beginning to pick up in these sectors with investors realising that as holidaymakers and business travellers return some hotel assets could be undervalued. Investors are also showing strong interest in the residential sector and especially in PRS properties. Poland recorded a transaction volume of around EUR 1.5 bln in Q3 2021. Since the beginning of the year, nearly 40 transactions have taken place in the country with sixty properties changing hands. Among the largest transactions in this sector were the acquisition by Heimstaden Bostad from Budimex Nieruchomości of 2,496 apartments located in major Polish cities and NREP signing a contract with YIT for the development of 1,071 apartments in Warsaw. This year, investors have signed seven contracts worth EUR 600 mln, for the construction of around 5,500 apartments for rent.

Warsaw continues to be the centre of investor activity interested in the office market. Acquisition of the prime Metropolitan office building in the Warsaw CBD by Morgan Stanley from DWS for a reported EUR 240 mln, and the sale of buildings G and H in the Warsaw Breweries development to DEKA by Echo Investment for EUR 150 mln create a new benchmark for valuations in a post-pandemic world and demonstrate the strong appetite of investors for core products and their confidence in the long-term development of the Warsaw office market The warehouse sector continues to develop rapidly. The transaction volume for this asset group remains high, with record liquidity creating additional upward pressure on prices.
Piotr Mirowski, head of investment services at Colliers in Poland

More than 2.1 mln sqm of modern warehouse space with a total value of EUR 1.6 bln was sold over the three quarters of 2021. Major transactions include the acquisition of a portfolio of five logistics parks with a combined gla of 209,000 sqm by Reino Capital on behalf of Grosvenor Group, and the purchase of a 52,000 sqm logistics park in Gdańsk by Generali, sold by 7R.