Czech and Bulgarian markets drive CEE investment boom

31
Oct
2017
News - Czech and Bulgarian markets drive CEE investment boom #Bulgaria #CEE #Colliers #Czech Republic #Hungary #investment #Poland #report #SEE #Slovakia

by Import Sys | Report

Investment flows into the CEE-6 region’s commercial real estate markets rose 12% y-o-y in the first nine months of 2017. The €7.6 billion closed deal total coupled with a still full pipeline of deals under consideration suggests that the annual cycle high of €12.2 billion invested last year is likely to be matched or overhauled. Substantial growth in Czech and Bulgarian volumes were the drivers of the momentum in the January-September 2017 period, says Colliers International in its latest report.


Total investment volume in the CEE-6 countries reached €2.2 billion in Q3 2017. Substantial growth in Czech (+71% year-on-year) and Bulgarian (+158% y-o-y) volumes were the drivers of the momentum in the January-September 2017 period.

The Czech Republic remains the largest recipient so far this year, still ahead of its larger neighbour Poland.

Considering the sectors in CEE, retail and hotel investment volumes continue to rise by the most, whilst purchases in the industrial sector appear to be more concentrated at the portfolio level for now.

“Several of the newer sources of capital we have identified featured strongly in Q3 2017. A combined 29% of investment came from domestic sources within the CEE-6 countries or CEE cross-border flows: Czech and Hungarian money is prominent. South African funds made a comeback in the quarter, comprising 25% of the invested funds”, says Mark Robinson, CEE Research Specialist for Colliers.

Underlying the strong flow momentum is a robust demand growth story, with the economies of the CEE-6 region registering GDP growth rates of between 3.2%-5.9% year-on-year in Q2 2017. Evidence from more recent industrial production and retail sales numbers suggests that this growth momentum is extending into the second half of the year.



New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

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