{"id":1071,"date":"2019-09-06T08:50:26","date_gmt":"2019-09-06T08:50:26","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=1071"},"modified":"2019-09-06T08:56:49","modified_gmt":"2019-09-06T08:56:49","slug":"polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761\/","title":{"rendered":"Polish investment market in great condition:  almost EUR 2.6 billion in H1 2019, Warsaw at the forefront in CEE"},"content":{"rendered":"<p><strong>Poland has maintained its dominant position in the investment market in Central and Eastern Europe with the highest diversity and liquidity of products and diversity of investors. Demand remained high in all sectors, but office transactions were clearly dominant.<\/strong><\/p>\n<p>The total value of investment transactions in the first half of 2019 amounted to around EUR 2.58 billion, which is the second highest performance after the remarkable H1 2018. Market liquidity was high with 75 assets sold in 57 transactions.<\/p>\n<figure id=\"attachment_1072\" aria-describedby=\"caption-attachment-1072\" style=\"width: 2502px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1072\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1.jpg\" alt=\"Piotr Mirowski, Senior Partner, Director, Head of Investment Services at Colliers International\" width=\"2502\" height=\"1787\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1.jpg 2502w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-300x214.jpg 300w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-768x549.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-1024x731.jpg 1024w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-100x70.jpg 100w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-696x497.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-1068x763.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-588x420.jpg 588w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2019\/09\/Mirowski-Piotr_Colliers_com_1-1920x1371.jpg 1920w\" sizes=\"auto, (max-width: 2502px) 100vw, 2502px\" \/><figcaption id=\"caption-attachment-1072\" class=\"wp-caption-text\">Piotr Mirowski, Senior Partner, Director, Head of Investment Services at Colliers International<\/figcaption><\/figure>\n<p>\u201cMost of the investments were made in office assets \u2013 over 60% of the total turnover (EUR 1.62 billion). Second place was taken by the retail market (18%), with a value of EUR 0.45 billion, followed by warehouses (14%, approx. EUR 0.36 billion) and new, alternative asset classes, such as hotels and student dormitories (6%), in which a record EUR 150 million was invested,\u201d says <strong>Piotr Mirowski<\/strong>, Senior Partner, Director, Head of Investment Services at Colliers International.<\/p>\n<p>Noteworthy, was the closing of the first investment transaction for student accommodation in Central and Eastern Europe. An institutional investor from Japan acquired from Oaktree a majority stake in Student Depot, which operates 2,000 beds in five Polish cities. The transaction was valued at around EUR 60 million.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761\/#Over_a_billion_euros_in_Warsaw\" >Over a billion euros in Warsaw<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761\/#American_and_British_capital_as_the_main_engine\" >American and British capital as the main engine<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761\/#Lower_rates_of_return\" >Lower rates of return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ceo.com.pl\/en\/polish-investment-market-in-great-condition-almost-eur-2-6-billion-in-h1-2019-warsaw-at-the-forefront-in-cee-32761\/#Optimistic_prognosis\" >Optimistic prognosis<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Over_a_billion_euros_in_Warsaw\"><\/span>Over a billion euros in Warsaw<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Warsaw still remains the most popular market for investors in Central and Eastern Europe, with EUR 1.17 billion invested in the city in the first half of 2019. At the same time, the capital has strengthened its position as a key location for office investments, attracting new domestic, European and international investors. 25 office buildings were sold within 19 transactions in the city for a total of EUR 1 billion, which constitutes a new record for a six-month period. The main contracts include Mapletree taking over the West Station complex from HB Reavis for around EUR 190 million, the sale of Globalworth Warsaw Trade Tower for around EUR 133 million and the purchase of the Ethos office building in Warsaw for EUR 115 million by Credit Suisse.<\/p>\n<p>Regional markets in Poland generated EUR 1.42 billion in closed deals (55% of the national total), highlighting the ongoing appetite for quality product and yield premium over Warsaw. Investors from the Far East continued their expansion in the regions. In the two largest transactions in the office market, ISOC Holding expanded its portfolio by acquiring Business Garden Wroc\u0142aw from the developer Vastint for around EUR 95 million and Argon (the third phase of the Alchemia complex) in Tri-City for around EUR 92 million from Torus.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"American_and_British_capital_as_the_main_engine\"><\/span>American and British capital as the main engine<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the first half of 2019, capital continued to be deployed by US and UK-based investment managers, Germany-domiciled funds and selected buyers from the Republic of South Africa. Poland is enjoying a new wave of institutional and family office capital from Asia with around EUR 0.5 billion invested in H1 2019 by investors from South Korea, Singapore and Philippines.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lower_rates_of_return\"><\/span>Lower rates of return<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Further yield compression continued during the last 12 months across all asset classes (though selectively for retail, where only core product enjoyed capital appreciation). Prime office yields for Warsaw\u2019s city centre decreased from 5.2% to 4.5% y\/y while in two major regional markets (Wroc\u0142aw and Krak\u00f3w) from yields decreased from 5.9% to 5.5%.<\/p>\n<p>BTS, prime logistics assets with long-leases with investment-grade covenants are now expected to trade below 5% with 6.5\u20137.5% for traditional ones.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Optimistic_prognosis\"><\/span>Optimistic prognosis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Experts from Colliers International expect that capital inflow will increase in H2 2019. \u201cThere are a number of transactions in due diligence, under negotiations and marketing with a view of closing by the end of the year, in particular in the office sector. Commercial real estate alternative assets classes (e.g. student accommodation, rental apartments) will continue to generate increased interest,\u201d predicts <strong>Marcin M\u0119drzecki, <\/strong>Associate Director, Investment Services at Colliers International.<\/p>\n<p>Pricing is expected to remain firm with further yield compression for prime office buildings in Warsaw City Centre and regional cities, such as Wroc\u0142aw, Krak\u00f3w, Pozna\u0144 and Gda\u0144sk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Poland has maintained its dominant position in the investment market in Central and Eastern Europe with the highest diversity and liquidity of products and diversity of investors. Demand remained high in all sectors, but office transactions were clearly dominant. The total value of investment transactions in the first half of 2019 amounted to around EUR [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,14],"tags":[2770,289,299,107,166,863,28,70,443,444,64,74,133,82,2822,71],"class_list":["post-1071","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","category-investing","tag-bts","tag-colliers","tag-colliers-international","tag-credit-suisse","tag-gdansk","tag-globalworth","tag-hb-reavis","tag-krakow","tag-piotr-mirowski","tag-poland","tag-poznan","tag-tri-city","tag-warsaw","tag-wave","tag-wroclaw"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=1071"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/1071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/1072"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=1071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=1071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=1071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}