ARTICLES LABELLED WITH TAG CEE

The mood among investors at MIPIM was mixed: we all expected that the beginning of this year would not be rich in transactions and new projects, and it is true - we are seeing an investment slowdown across Europe, writes Marcin Purgal, Senior Director, Investment at Avison Young. However, in this time of uncertainty, we can say that Poland is enjoying and will continue to enjoy the interest of investors - it is one of the most active markets, across all segments, offering higher rates of return than Western Europe. We have an influx of new capital from the Baltic countries and Scandinavia. Also, the already present capital is still active, such as investors from Central and Eastern Europe as well as a few from Western Europe.

MLP Group has published its 2022 performance figures. The Group’s Net Assets Value (NAV) went up 37%, to just under PLN 2.5 billion (€532.6 million). The value of its investment properties rose 31%, to more than PLN 4.4 billion (€945 million). Consolidated revenue improved 39% yoy, to PLN 279.1 million (€59.5 million), driven by an increase in leased area combined with higher rental rates. Rental income from investment properties increased by 31%, to PLN 152.9 million. At the same time, the Group’s EBITDA (without revaluation of investment properties) improved by 47%, to PLN 135.1 million (€28.8 million). Last year, MLP Group earned PLN 422.4 million (€90.1 million) in net profit.

Ervin Palfy, Country Manager Slovakia at Arnold Investments talked to Property Forum about CEE investment market trends and the growing popularity of cross-border deals.

GLP has been operating in Central Eastern Europe for nearly three years. In that time, it has doubled its portfolio in the region, with a total of nearly 2.5 million sqm of building assets currently under management in Poland, the Czech Republic, Slovakia and Hungary. The company is planning new ventures that will reinforce its position among the region’s leading logistics real estate investors, developers and managers.

The rising share of domestic investors has kept volumes high in CEE property markets in the last year and this trend will continue. The overall market outlook is quite optimistic as further declines are expected for inflation and construction costs, concluded panellists of Property Forum's recent online event.

Industrial developer CTP's net rental income amounted to €452.1 million in 2022, which was an increase of 38.3% year-on-year, while like-for-like rental growth was 4.5% last year, mainly driven by reversion on expiring leases and renegotiations, and supported by the 2021 indexation of 1.7%. The company's annual profit decreased by 22.4% from €1,025.9 million in 2021 to €796.5 million in 2022.

According to Cushman & Wakefield, 2022 witnessed a recovery in commercial real estate investment activity in CEE, with the year closing marginally up compared to the previous year. Total investment volumes in Central and Eastern Europe came in at €10.7 billion, up by 6.6% year-on-year. With more than €5.7 billion worth of deals, Poland continued to lead the way across the region.

NEPI Rockcastle, the biggest owner and developer of shopping centres in CEE by market value, said its net operating income soared by 17% to a record of €405 million compared to 2021 over strong tenant turnover and base rental growth.

Markets are expected to remain subdued in H1 2023 due to the negative sentiment in the economy, the significantly higher financing costs and the subsequent pricing correction that is currently playing out in both CEE and many other global markets, reveals a report by Colliers.

bnt attorneys in CEE, an international business law firm with 10 offices in Central and Eastern Europe, and BSJP, one of Poland’s full-service legal practices, have teamed up to create a legal powerhouse. The new firm will operate under the combined brand of BSJP | bnt in Poland.