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

Investment & finance

POLAND MLP raises PLN 183.5 mln in share offer

schedule 02 December 2022
Opr./edited by NN

Polish industrial developer MLP Group has raised PLN 183.5 mln in a public offering of 2,621,343 series F shares by way of a private placement on the Warsaw Stock Exchange directed exclusively to qualified investors and investors subscribing for shares worth no less than the equivalent of EUR 100,000. Based on an accelerated bookbuild process, the issue price of the shares was set at PLN 70.

Warehouse & industrial

POLAND Green light for 7R Wrocław West II

schedule 01 December 2022
Opr./edited by NN

Polish warehouse developer 7R has been granted a final building permit for its 7R Park Wrocław West II development in Kąty Wrocławskie, which will offer almost 44,000 sqm of logistics and production space.

Retail & leisure

POLAND LCP buys second retail park from Ghelamco

schedule 01 December 2022
Nathan North
deputy editor

Ghelamco has sold the Plac Vogla retail park in Warsaw’s Wilanów district to LCP Properties for an undisclosed sum.

Residential

Slovakia Bratislava’s highest Christmas tree

schedule 01 December 2022
Opr./edited by ANZ

Slovak developer J&T Real Estate (JTRE) has topped out its Eurovea Tower skyscraper project, which forms part of its large-scale Eurovea 2 city-forming development in Bratislava. At 168m it is the tallest building in Slovakia.

Warehouse & industrial

Germany Garbe leases to car manufacturer

schedule 01 December 2022
Opr./edited by ANZ

A prominent German vehicle manufacturer will move into a property with a total area of around 18,500 sqm owned by Garbe in the 'Niedersachsenpark' in Lower Saxony. Garbe acquired the building together with two other halls a year ago as part of an asset deal from Engler Immobilien Gruppe. The vehicle car manufacturer wants to store components for the automotive process chain in the new property.

Residential

Czech Republic Residential market overheated in Prague

schedule 01 December 2022
Opr./edited by ANZ

Colliers has summed up this year’s activity in the Czech residential real estate market. According to their analysis, Czechs are oriented largely towards an ownership model. The main driver for price increases is a significant excess of demand over supply.

Investment & finance

CZECH REPUBLIC Penta secures loan for Metalica and Legatica

schedule 30 November 2022
Nathan North
deputy editor

Penta Real Estate has received a CZK 1.8 bln (app. EUR 73.9 mln) for the construction of two additional office buildings in its Nová Waltrovka development in Prague.

Office & mixed-use development

POLAND Signify signs up for Hi Piotrkowska

schedule 30 November 2022
Nathan North
deputy editor

Lighting specialist Signify (formerly Philips Lighting) is to move its Łódź head office to the Hi Piotrkowska complex in the city centre, where it has leased 2,800 sqm.

Office & mixed-use development

CZECH REPUBLIC CTP starts work on Brno office building

schedule 30 November 2022
Nathan North
deputy editor

CTP has started the construction work on Building I of the Vlněna office complex on the brownfield site of a former textile factory in its home city of Brno. The project will involve an investment of CZK 600 mln (app. EUR 25 mln).

Office & mixed-use development

Poland Rockwool bigger in Poznań

schedule 30 November 2022
Opr./edited by ANZ

Rockwool, a manufacturer of products for the construction sector, is expanding its headquarters in the Nowy Rynek D office building in Poznań, developed by Skanska. The additional 900 sqm of space will allow the company to recruit a further 70 employees.

Warehouse & industrial

Poland Panattoni grows in Mazovia

schedule 29 November 2022
Opr./edited by JC

Panattoni takes on another development for ESA Logistika in the Radzymin area. The operator is to take up 30,000 sqm from the beginning of 2023.

Property and Facility Management

CEE REGION Inclusion, not charity

schedule 29 November 2022
Opr./edited by ANZ

Colliers has joined forces with Hungarian-based accessibility certification company Access4you in the Czech Republic. The two companies will assist people with special needs and disabilities to integrate themselves better into daily business life regardless of the type of work environment.

Office & mixed-use development

Poland My Place for a drink?

schedule 29 November 2022
Opr./edited by ANZ

Polish alcoholic drinks distributor United Beverages is to relocate its Warsaw office to Moje Miejsce (My Place) in the city's Dolny Mokotów district, where from mid-2023 it will occupy almost 2,700 sqm.

Retail & leisure

Poland Mitiska and Karuzela open Kołobrzeg centre

schedule 29 November 2022
Opr./edited by ANZ

Mitiska REIM and Karuzela Holding have opened a new convenience shopping centre mall in Kołobrzeg on Poland's Baltic coast. The new centre contains 40 shops on an area of 19,800 sqm and offers parking for 1,000 vehicles.

Warehouse & industrial

Romania CTP expands Bucharest South

schedule 29 November 2022
Opr./edited by ANZ

CTP has announced that it is to expand CTPark Bucharest South by 60,000 sqm, bringing its total area up to almost 150,000 sqm.

Investment & finance

EUROPE Allianz moves into Polish and Finnish sheds

schedule 29 November 2022
Nathan North
deputy editor

Munich-based Allianz Real Estate has entered into a forward-purchase agreement with German logistics provider DHL for a portfolio of five logistics facilities under construction in Poland, the Netherlands and Finland.

Warehouse & industrial

CZECH REPUBLIC UPS HQ changes hands

schedule 28 November 2022
Opr./edited by NN

UK investment group Verdion has sold the Czech headquarters and main logistics hub of US courier UPS in Tuchoměřice near Prague to Czech investment group Safichem for an undisclosed sum.

Warehouse & industrial

POLAND Flex fills out Panattoni Elbląg

schedule 28 November 2022
Opr./edited by NN

American-Singaporean electronics manufacturer Flex has leased 17,100 sqm of newly-completed warehouse space at Panattoni Park Elbląg in northern Poland.

Green projects

Poland Windy in Kostomłoty

schedule 28 November 2022
Opr./edited by ANZ

Bilfinger Tebodin has completed work on a 27 MW wind farm in Kostomłoty in the South-West of Poland. The investment was carried out by Polenergia, Poland's largest private energy group.

Investment & finance

HUNGARY Green Court Offices sold to French investor

schedule 28 November 2022
Nathan North
deputy editor

Groupama Gan REIM, on behalf of French investor SCPI Affinités Pierre, has acquired the Green Court Office complex in Budapest from Belgian developer Codic Hungary and its partners Picton Group and Pesti Házak for EUR 77.1 mln.

Latest in Investment & finance

schedule 02 December 2022

MLP raises PLN 183.5 mln in share offer

Polish industrial developer MLP Group has raised PLN 183.5 mln in a public offering of 2,621,343 series F shares by way of a private placement on the Warsaw Stock Exchange directed exclusively to qualified investors and investors subscribing for shares worth no less than the equivalent of EUR 100,000. Based on an accelerated bookbuild process, the issue price of the shares was set at PLN 70.

schedule 30 November 2022

Penta secures loan for Metalica and Legatica

Penta Real Estate has received a CZK 1.8 bln (app. EUR 73.9 mln) for the construction of two additional office buildings in its Nová Waltrovka development in Prague.

schedule 29 November 2022

Allianz moves into Polish and Finnish sheds

Munich-based Allianz Real Estate has entered into a forward-purchase agreement with German logistics provider DHL for a portfolio of five logistics facilities under construction in Poland, the Netherlands and Finland.

schedule 28 November 2022

Green Court Offices sold to French investor

Groupama Gan REIM, on behalf of French investor SCPI Affinités Pierre, has acquired the Green Court Office complex in Budapest from Belgian developer Codic Hungary and its partners Picton Group and Pesti Házak for EUR 77.1 mln.

schedule 23 November 2022

CPI set to merge S Immo into Immofinanz

Immofinanz has received approval from its supervisory board to enter into negotiations with its main shareholder CPI Property Group for the acquisition of a controlling stake in S Immo.

schedule 22 November 2022

CA Immo exits Romania with largest ever deal

Austrian real estate company CA Immo has announced its exit of the Romanian market as it finalises the sale of its seven-building office portfolio in Bucharest to local company Pavăl Holding, the owner of the Dedeman chain of DIY stores.

schedule 21 November 2022

Increased sale and leaseback activity 

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.

schedule 16 November 2022

Strabag forecasts higher output for 2022 

Strabag, a European-based technology group for construction services, has announced its figures for the first nine months of 2022. The company expects to generate an output volume of at least 17 billion euro in the full year – the guidance in the half-year was 16.6 billion euro.

schedule 16 November 2022

EQT Exeter buys in Szczecin

Waimea Holding has sold North-West Logistic Park 2 Szczecin, a complex of three fully commercialized warehouses in Szczecin, to a fund managed by EQT Exeter. The total area of the land and the property is over 27,000 sqm.

schedule 15 November 2022

Q4 expected to be less active

In its latest Global Capital Markets report Collier’s has analysed investment volumes across the Central and Eastern Europe region. According to the overview, investment volumes for the first three quarters of 2022 in CEE region were up by 3 pct year-on-year, but a noticeable slowdown from Q2 has been recorded. 

schedule 14 November 2022

EUR 100 mln loan for Bory Mall

Penta Real Estate has obtained a EUR 100 mln bank loan to refinance the debt of Bory Mall in Bratislava.

schedule 10 November 2022

PBSA market sets records

According to Savills, the total investment volume for Purpose Built Student Accommodation (PBSA) in Europe reached 11.7 billion euro in the first three quarters of 2022, a 130 pct increase on the same period in 2021 and a record high.

schedule 08 November 2022

CPI transfers Budapest portfolio to S Immo

Vienna-based S Immo has finalised the acquisition of eight office buildings and a plot of land in Budapest from its new parent company and majority shareholder, Prague-based CPI Property Group, for EUR 238.3 mln.

schedule 07 November 2022

Czech-Lux duo buy second Gdynia office complex

Łużycka Office Park (A, B, C and D) and Łużycka Plus buildings in Gdynia have been acquired from SGPM by a joint venture between Czech real estate open fund Investika and Luxembourg private equity investor Bud Holdings.

schedule 03 November 2022

Catella sells Warsaw and Kraków student & PRS projects

Catella has sold two fully-leased residential and student housing properties in Warsaw and Kraków to institutional investors in Austria and the Netherlands for more than EUR 60 mln.

schedule 03 November 2022

Poland continues to attract investment

According to a survey conducted by Savills involving real estate investors with total EME assets under management exceeding EUR 500 bln, European multifamily, big box logistics, urban logistics, CBD offices and student housing are the top five sectors that investors are looking to invest in over the next twelve months.

schedule 02 November 2022

Forte sells U Center I to Pavăl

Forte Partners has sold the first phase of its U Center office development in Bucharest to Pavăl Holding for an undisclosed sum.

schedule 25 October 2022

HB Reavis seals Port Praski JV

Slovakian developer HB Reavis has completed the acquisition of 50 pct stakes in the Port Praski City II and Port Praski Medical Center projects in Warsaw’s Praga district from Cyfrowy Polsat for app. 24.3 mln.

schedule 20 October 2022

Austro-Hungarian deal for Máriássy House

Hungarian developer Wing has sold the Máriássy House office complex in central Budapest to Grawe Immo for an undisclosed sum.

schedule 17 October 2022

Ghelamco sells Prochownia to LCP

Ghelamco Poland has sold the Prochownia Łomianki retail park in northern Warsaw to LCP Properties Group for an undisclosed sum. The centre, with a total area of 5,500 sqm, includes 21 retail and service units.

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