ARTICLES LABELLED WITH TAG report

JLL´s Czech Supply Chain Activity Index marks further strong growth in Q3 2017, supporting continued robust occupier demand. The Index rose by 1.1% in Q3 2017, significantly above its long-term trend. As such, it maintained the strong growth patterns seen over the past three quarters.

Wrocław’s office market continues its upward momentum. Office take-up hit 132,100 sqm in the first three quarters of 2017, representing a 70% rise on the same period of 2016, says tenant-only real estate advisory firm Cresa in its latest report.

Immofinanz posted a significant increase in net profit from continuing operations (excl. Russia) for the first three quarters of 2017, to €116.3 million (Q1-Q3 2016: €-217.8 million). Rental income remained stable at €174.1 million despite the ongoing sale of non-strategic properties (Q1-Q3 2016: €174.0 million). Adjusted for new acquisitions, completions and sales (like-for-like), rental income rose significantly, by 3.9% to €138.4 million. The results from Asset Management grew 11.3% to €122.6 million; financial results moved strongly into positive territory at €88.6 million (Q1-Q3 2016: €-143.9 million). This was primarily a result of positive valuation effects from the CA Immo and BUWOG shareholdings, and lower financing costs. Overall, net profit (incl. Russia) improved to €-59.1 million (Q1-Q3 2016: €-409.5 million).

In Q3 2017, Echo Investment posted a net profit of €12 million (PLN 50 million). The main contributors were: signing final sale agreements for 238 apartments, increase in the value of projects under construction, the sale price increase of the Q22 building, dividend from EPP as well as the compensation for the expansion of Outlet Park in Szczecin.

The Czech Republic saw investment in real estate tail off slightly in the third quarter to €450 million, but following a strong start to the first half of 2017 when €2.25 billion worth of transactions were closed, total cumulative investment volumes had reached €2.67 billion by the end of September, according to Colliers International.

AFI Europe Romania published its financial results. The Net Operating Income (NOI) from its income producing assets in Romania was over €37 million in the first nine months of the year, representing respectively 10.4% higher results compared to the same period in 2016. The value of the existing income producing assets AFI Cotroceni, AFI Ploiesti and the 5 office buildings of AFI Park increased by 7.5% to €735 million according to the valuation performed as of September 30, 2017.

There is an ongoing mentality shift in the property industry which not just about technology, proptech guru James Dearsley revealed at the largest event on the Hungarian property market. Over 700 participants and nearly 100 speakers gathered at the 13th Portfolio Property Investment Forum in Budapest which focused on the future of real estate.

Sevdelina Petrova MRICS (Bulgaria) and Maja Ostanek MRICS (Slovenia) were awarded the Chris H. Bennett Memorial Prize. The awards were handed out at the Portfolio Property Investment Forum conference in Budapest, where the achievements of several big players of the Hungarian property market were also acknowledged.

BPO/SSC take-up totalled over 60% of all-sector office take-up in 4 key BPO cities (Wroclaw, Lodz, Krakow and Sofia) in H1 2017. Vacant stock is diminishing, due to this demand impulse and strong general economic conditions. Labour availability and employee tech knowhow uplift are significant factors which influence the demand for space, according to a report by Colliers International. The key findings of the report include:

The Warsaw office market maintains its strong momentum. This year’s total supply is expected to surpass 300,000 sqm, office take-up rose in the first three quarters of 2017 by 11.2% compared with the same period of 2016 and the vacancy rate is falling, shows the latest report by tenant-only advisory firm Cresa. The growth of the SSC/BPO sector and potential Brexit are likely to drive the Warsaw market going forward.