80% INCREASE IN INVESTMENT TURNOVER CB RICHARD ELLIS report
Polish market investment volumes rose sharply during the first half of the year as strong investor demand was satisfied following an increase in stock on the market.
In H1 2010 the total transaction volume reached EUR 530 million recorded in 14 transactions. This number represents almost a 80% increase in terms of volume in comparison to H1 2009.
Patrick O’Gorman, Director of Capital Markets CEE, CB Richard Ellis, said: “With investor demand still strong, investment volumes are expected to remain high. German buyers remain very active in the market and accounted for 59 per cent of total investment volume. However, the most notable change has been the rise in domestic demand, with Polish investment companies showing a growing interest in the market and accounted for 9%.”
This notable shift in the activity is also partly driven by change in lending terms that are becoming more competitive. ‘Many banks are now actively looking to issue new debt, albeit very selectively and at a capped level.’ – adds Patrick O’Gorman.
1H 2010 top three deals:
• Horizon Plaza was sold by IVG Development to German Union Investment for 102 million EUR reflecting a yield of 7.15%.
• Trinity Park III was sold by Ghelamco to SEB Immo Invest for 93 million EUR reflecting the yield of 7.4% - 7.5%.
• Panattoni disposed their industrial Portfolio to AEW Europe for 91 million EUR reflecting the yield of 8.5-8.9%.
Prime office yields fell to 6.5 per cent in Warsaw for best quality office buildings and 7 per cent in the regions.
Prime retail yields in Warsaw have followed the general downward trend and are assessed to stay at around 6.5%. Yields’ spreads between Warsaw and other major cities have flattened, while the best products in Poland’s tertiary locations are now priced about 100 bps higher. Industrial yields have compressed to 8.25%.
Patrick O’Gorman commented: “Growing Investor’s sentiment shows that Poland, although still carrying emerging market potential, is now on the fast track to becoming a more mature and established market.”
Source: CBRE Poland, Warsaw, 23rd September 2010
