PL

Europe Increased sale and leaseback activity 

Investment & finance
Despite a slowdown in commercial real estate (CRE) markets, a tough macroeconomic backdrop and tighter lending conditions are set to make property an increasingly attractive means to raise capital, according to new research from Colliers. Corporates can explore a variety of methods to monetise real estate assets, with sale and leaseback emerging as one of the most attractive.

According to the report, leveraging corporate finance to unlock real estate capital, with uncertainty continuing to roil global markets and interest rates likely to stay elevated, price corrections in real estate are likely to persist well into H2 of 2023. Nonetheless, as investor appetite for real assets remains strong, real estate offers clear potential for companies to raise capital on favourable terms.

The report outlines a range of options for companies looking to use real estate as a route to access capital, including sale and leaseback transactions, in which a company sells a building it is constructing, or owns and occupies, to an investor and subsequently leases the building for a defined period, are expected to see particularly robust growth due to the benefits they offer both sides.

Sale and leasebacks give the corporate a means to unlock cash that can fund strategic business initiatives while continuing to enjoy control and access to the asset. In addition to ownership, investors meanwhile immediately receive steady long-term income over the life of the lease.
Robert Campkin, Managing Director, Head of Corporate Capital Solution in EMEA Occupier Services

According to the report, while activity is likely to remain subdued in the near term, real estate will remain sought after by investors - particularly assets that are mission critical in nature, and/or tie into the growing focus on sustainability. Assets such as industrial and logistics, and/or sustainability components are expected to generate the most interest.

A ‘turning point’ likely next year

According to the report, a long-awaited correction will unfold throughout most of 2023 across different real estate markets at various speeds, depending on local conditions and interest rate developments. However, with some markets, like the UK, already seeing substantial yield moves, investment activity is expected to bottom out and recover by the end of 2023.

Continued real estate M&A activity

Large funds have been actively pursuing M&A as a means to access long income real estate assets and this trend is likely to continue. More investors are anticipated to utilise M&A to enter specialised sectors and gain the knowledge and skills necessary to operate in them efficiently and profitably.

Emphasis on sustainability

Colliers has noticed an uptick in sustainability information being demanded by investors and lenders before assets are acquired or financed - as well as a focus on occupier ESG credentials, particularly in transactions that involve long lease commitments. These considerations will soon accompany any effort to raise capital via real estate assets as a matter of course.

Investors are increasingly aware of the need to build portfolios that will retain value as regulations change and many are also working towards their own environmental targets. Corporates looking to monetise sustainable real estate assets are likely to enjoy the widest range of options, and the most favourable terms.
Robert Campkin, Managing Director, Head of Corporate Capital Solution in EMEA Occupier Services


A need for expertise

The complexity and balance sheet implications of real-estate linked funding mechanisms mean transactions like sale and leasebacks and alternative financing structures need to be approached and structured carefully to ensure they remain financially viable and beneficial for both seller and buyer in an environment of heightened uncertainty. Colliers recommends companies considering participating in such deals consult specialists with a proven track record of advising and executing transactions of similar scope.

Latest news

Office & mixed-use development

Poland Two new leases signed at Bonarka for Business

schedule 27 February 2024
Opr./edited by ANZ

Two new contracts for the lease of office space in the Bonarka for Business complex in Kraków have been signed. A total of 825 sqm of space has been leased.

Warehouse & industrial

Poland First tenants in Panattoni Park Lublin IV

schedule 27 February 2024
Opr./edited by ANZ

Panattoni has handed over Panattoni Park Lublin IV. The project is a two-building complex with a combined area of 52,000 sqm, built within the Świdnik Economic Activity Zone. The first tenants are now starting their operations in the complex.

Hotels

Romania Bucharest hotel market rebounds

schedule 27 February 2024
Opr./edited by ANZ

The hotel market in Bucharest has experienced a moderate annual average growth in new offerings, at 0.9 pct between 2019 and 2023. This modest trend was primarily influenced by the cancellation of Urban Zoning Plans. Between 2024 and 2025, an estimated average annual growth rate of 4.1 pct in the number of rooms is expected, according to data from the real estate consulting company Cushman & Wakefield.

Warehouse & industrial

Poland MLP Łódź has a new tenant

schedule 27 February 2024
Opr./edited by ANZ

Bohnenkamp, a supplier of tyres and wheels for professional use, will join the group of tenants at the MLP Łódź logistics park. The company will occupy more than  6,000 sqm of space.

Investment & finance

Czech Republic Rebalancing of prices is expected

schedule 26 February 2024
Opr./edited by ANZ

According to a survey by Colliers presented at a February meeting of Czech and Slovak investors and other financial experts, active in commercial real estate, investment volumes in CEE-6 fell by around 52 pct to EUR 5.1 bln in 2023, reaching a ten-year low. Czech capital, however, retains strongest position in the region.

Warehouse & industrial

Poland Sweet deal for Eurologis

schedule 26 February 2024
Opr./edited by JC

Agart-Pro has extended its lease of nearly 1,800 sqm of warehouse and office space in Eurologis Logistics Centre. The complex is located 16 km from the centre of Wrocław.

Land acquisitions

Croataia Slovaks invest in Croatia

schedule 23 February 2024
Opr./edited by ANZ

Slovak investment fund Prvý realitný fond, through its company Logis Rugvica, has acquired a plot of land in the area of the village of Sveta Helena near Zagreb. This marks the fund's debut on the Croatian market.

Office & mixed-use development

Poland New tenants on the horizon

schedule 22 February 2024
Opr./edited by ANZ

Warsaw's Horizon office complex has gained four new tenants. In total, the companies will occupy almost 2,500 sqm of space in the facility.

Residential

Czech Republic New residential project in Prague's Vysočany

schedule 22 February 2024
Opr./edited by ANZ

Rezidence Klíčov, a current major SHD Real Estate residential project in Prague, is moving into the construction phase. The project located in Vysočany, Prague 9, is expected to be completed next year.

Eurobuild FM

Poland Special edition of Eurobuild FM – summaries and forecasts (ep. 16)

schedule 22 February 2024
Eurobuild CEE

Henryk Bilski, leasing director at Strabag Real Estate, talks about the difficult office market in Warsaw and the company's new projects in 2024, including its debut in the PRS sector. Welcome to the last episode of the special edition of Eurobuild FM!

Investment & finance

Poland Concept Tower changes hands

schedule 22 February 2024
Opr./edited by JC

CPI Property Group has sold Concept Tower, a 15-story office building in Warsaw's Wola district. The new owner is Wood & Company Real Estate Fund.

Warehouse & industrial

Poland Ideal Idea is growing in Wrocław

schedule 22 February 2024
Opr./edited by JC

Ideal Idea is commencing the construction of its fifth facility as part of the expansion of City Park Wrocław. The new 15,000 sqm building will increase the total space offered by the developer in Lower Silesian capital to 36,000 sqm.

Warehouse & industrial

Poland More light at CTPark Warsaw South

schedule 22 February 2024
Opr./edited by JC

CTP has expanded the Polish capital’s warehouse market by more than 67,000 sqm through the delivery of two new buildings at CTPark Warsaw South. This completion means the industrial and logistics complex in Mszczonów is now almost 90 pct complete.

Office & mixed-use development

Poland More companies choose Lixa E

schedule 22 February 2024
Opr./edited by JC

Aluprof and Unique Work have joined the tenant roster in the Lixa E building. The two companies occupy a total of nearly 625 sqm in the complex.

Office & mixed-use development

Poland EY has chosen Brain Park

schedule 21 February 2024
Opr./edited by ANZ

EY will move into new premises in Kraków. The company will occupy 2,000 sqm in the Brain Park office building. Echo Investment has thus completed the commercialisation of the first building of the office complex on Al. Pokoju.

Warehouse & industrial

Polska Panattoni Park Tricity East V has its first tenant

schedule 21 February 2024
Opr./edited by ANZ

Panattoni has handed over the first building in the Panattoni Park Tricity East V complex, near to the Port of Gdańsk. Regesta is to start operating in the building.

Eurobuild FM

Poland Special edition of Eurobuild FM – summaries and forecasts (ep. 15)

schedule 19 February 2024
Eurobuild CEE

In the penultimate episode of the special edition of Eurobuild FM, we have a short (!) and clear (!!) tax interpretation for you. Why things can only get better after the "Polish Deal", what new taxes await the real estate industry in 2024 and whether we should be afraid of KSEF (National E-invoice System) – these questions (and some others) were answered by Justyna Bauta-Szostak, tax and legal advisor, partner at MDDP.

Warehouse & industrial

Poland CTPark Weiden is full

schedule 19 February 2024
Opr./edited by JC

CTP has fully leased CTPark Weiden ahead of its completion. The latest tenant is Josef Witt, an international textile trading company based in Weiden.

Warehouse & industrial

Poland BauWatch debuts in Poland

schedule 19 February 2024
Opr./edited by JC

BauWatch has leased 1,650 sqm of warehouse and office space in Panattoni Park Pruszków VI. The company provides CCTV towers with cameras and smart software, and maintains certified monitoring centres.

Warehouse & industrial

Poland Panattoni in the spotlight

schedule 16 February 2024
Opr./edited by JC

The cornerstone has been laid for the construction of the new Trilux factory in Świdnik. The 23,000-square-meter plant, which meets BREEAM certification criteria, will be built by Panattoni.

Latest in Investment & finance

schedule 26 February 2024

Rebalancing of prices is expected

According to a survey by Colliers presented at a February meeting of Czech and Slovak investors and other financial experts, active in commercial real estate, investment volumes in CEE-6 fell by around 52 pct to EUR 5.1 bln in 2023, reaching a ten-year low. Czech capital, however, retains strongest position in the region.

schedule 22 February 2024

Concept Tower changes hands

CPI Property Group has sold Concept Tower, a 15-story office building in Warsaw's Wola district. The new owner is Wood & Company Real Estate Fund.

schedule 14 February 2024

Hoping for smooth waters

With a total investment volume of just over EUR 2 bln, performance in 2023 on the commercial real estate investment market in Poland fell by two-thirds compared to volumes in the previous three years. However, Avison Young experts, according to Property investment market in Poland 2023, expect the situation to stabilise this year and investor activity to recover throughout 2024.

schedule 09 February 2024

Immofinanz sells in Zagreb

Immofinanz has closed the sale of the Grand Center Zagreb office property to a Croatian real estate company. The parties do not disclose the amount of the transaction.

schedule 08 February 2024

Trigea buys Arkády Pankrác

Trigea fund has finalised the purchase of the Arkády Pankrác shopping centre in Prague. This is the largest ever retail real estate transaction by domestic funds in the Czech Republic, with a value in excess of CZK 6 bln.

schedule 07 February 2024

Sandecja changes hands

A company from the Agat Ejendomme group (formerly TK Development) completed the sale of the Sandecja shopping mall in Nowy Sącz. The new owner of the facility is Focus Estate Fund.

schedule 06 February 2024

CTP issues green bonds

CTP announces the successful placement of EUR 750 mln green bond with a six-year maturity and a 4.750 pct fixed coupon. The notes were settled and admitted to trading on Euronext Dublin.

schedule 31 January 2024

Palmira goes shopping

Palmira has acquired a property in Krągola, situated between Poznań and Łódź, for the European Core Logistics Fund. Built in 2014 and occupied by Eurocash, the property comprises almost 40,000 sqm of hall and office space.

schedule 29 January 2024

Polish PRS goes Dutch

Dutch investment fund Van der Vorm has bought around 120 apartments from a Polish developer in Warsaw's Praga Południe district. The completed flats on ul.  Siennicka are intended for long-term rental.

schedule 29 January 2024

ZDR goes shopping

ZDR Investments Group has completed its first acquisition of the year. The company purchased a Billa grocery store with adjoining retail in the Prague district of Kunratice for its qualified investor fund.

schedule 23 January 2024

Colliers’ predictions for 2024

The CEE-6 is poised for a significant GDP growth rate surge, tripling from below 1 pct last year to around 2.5 pct, retail parks continue to be a central focus driving market growth, the slowdown in deliveries of new offices will aid in filling vacant spaces, especially in modern/ESG-compliant offices – these are some of the predictions for the CEE-6 in 2024 just revealed by Colliers.

schedule 23 January 2024

Imagine to be refinanced

Avestus Real Estate has signed a loan agreement for the refinancing of the Imagine office complex in Łódź. The loan, totalling EUR 23.9 mln, was provided by mBank.

schedule 17 January 2024

In search of higher risk

According to the 2024 Investment Intentions Survey – published by Anrev, Inrev and Prea – on a weighted AUM basis, the current average allocation to real estate globally is 10.6 pct, just slightly above the average target allocation of 10.4 pct.

schedule 17 January 2024

BlueRock has sold everything

BlueRock Group has succeeded in selling the remaining properties in the BlueRock Fund PCC Cell H - Berlin Residential Growth to individual private investors. The fund is therefore being liquidated. 

schedule 15 January 2024

Wiśniowy Business Park changes hands

One of the buildings in Warsaw's Wiśniowy Business Park complex has changed ownership. The name the buyer, as well as the amount of the transaction were not disclosed.

schedule 11 January 2024

Investment activity set to regain equilibrium

Uncertainty and volatility have been the two dominant trends shaping the commercial real estate market and buyer sentiment in recent months. However, according to Trends Radar, the latest report from Cushman & Wakefield, the Polish market, whose fundamentals remain strong, is broadly expected to regain equilibrium.

schedule 10 January 2024

Yareal obtains financing for Lixa

Yareal Polska and BNP Paribas Bank Polska have successfully concluded credit agreements totaling EUR 63.8 mln, enabling the development of the Lixa office project.

schedule 10 January 2024

Millions for Panattoni

Panattoni has been awarded bank financing of around EUR 10 mln from Santander for the BTS development in Łubowo. The project will serve as the main European production plant for Maxcess.

schedule 10 January 2024

The largest single transaction in SEE

Diofa Fund Management acquired Indotek’s Belgrade office portfolio including 11 premium office buildings in 5 business parks in Belgrade’s central business district.

schedule 09 January 2024

2024 will be better than expected

Moody’s Investors Service in its latest report has maintained a stable outlook for CEE sovereigns' creditworthiness in 2024. This is driven by a robust macroeconomic outlook, limited economic scarring from Europe's energy crisis and the roughly unchanged fiscal strength of the region.

Edition 1 (285) January 2024

Latest comments

Categories