Although the results of this year’s first quarter have been weaker than expected on the CEE investment market, this does not automatically mean than a slowdown has started. Andy Thompson MRICS, Head of Investment Czech Republic & Slovakia at Colliers International shared his market expectations with Property Forum.

Two large transactions in excess of €200 million that closed in Q1 and pipeline transactions of at least €1.5 billion point to the overall investment volume for 2019 exceeding the figures achieved in 2018 in 2019, according to the latest research from Colliers International.  

Leading Cities Invest, a KanAm Grund Group fund, has entered the Polish market by acquiring the Renaissance office building in central Warsaw from a fund managed by GLL Real Estate Partners. The parties agreed not to disclose the purchase price.

The EBRD is supporting capital market development in Romania with a €50 million investment in the second benchmark-sized €500 million corporate bond issued by NE Property B.V.

Orbis decided on the potential disposal of its service activity (asset light entity) and entered into exclusive negotiations with Accor - proceeding with the Company business model transformation.

Panellists of the CEE investment roundtable of Prague Property Forum 2019, led by Mike Atwell, Head of Capital Markets Czech Republic and Lead Director CEE at JLL discussed the key trends shaping the regional investment market. They agreed that the low interest rate environment is probably here to say but it's very difficult to say for how long.

One of the leading investment advisors of the region is seeing increased activity in Slovakia and Romania and expects further yield compression on these markets. Mike Atwell, Head of Capital Markets CEE and Czech Republic at JLL shared his thoughts on new investments, changing market trends and technology.

Investment fund Focus Estate Fund has set the goal to expand the geography of its presence in Central and Eastern Europe. In the next two years, the Fund plans to more than double its portfolio by strengthening its position in the niche of medium-sized commercial real estate in Poland and the Czech Republic, as well as by entering the Slovak market.

Allianz Real Estate intends to invest as much €500 million in CEE property over the next two years, according to a Bloomberg article.

Approximately €754 million was invested in Polish commercial property in the first quarter of 2019, according to Cushman & Wakefield’s latest investment market report.