European retail record

Total real-estate transactions in continental Europe in 2006 were worth EUR 26 (zł.102.2) billion, up by 77 percent on 2005 (EUR 14.6 [zł.57.4] billion), and more than three times higher than in 2004, according to new research by Jones Lang LaSalle. The number of transactions in 2006 was up by two thirds compared with the previous year. For its part, Jones Lang LaSalle recorded some 420 transactions in 2006 compared with 249 in 2005.

The last quarter of 2006 was particularly active. Transactions worth some EUR 10 (zł.39.3) billion, nearly 40 percent of the total volume for the year, took place between October and December. Over 200 investors bought retail property in 2006, with the top ten investors accounting for a third of the total investment volume.

"The last 12 months have witnessed no slowdown in the unrelenting demand for retail real estate across Europe, particularly in the core markets of Germany, Spain, Poland and Italy," said Jeremy Eddy, director of the European retail capital markets division at Jones Lang LaSalle.

Poland is ranked third in terms of retail real-estate investment, with EUR 2.4 (zł.9.4) billion in transactions in 2006 - over double the volume seen in 2005 - with a large proportion generated from portfolio deals. Germany (EUR 8 [zł.31.4] billion) and Spain (EUR 2.5 [zł.9.8] billion) were the countries placed ahead of Poland. According to the report, retail warehousing has seen a significant increase in activity in Poland compared to previous years. AXA's purchase of a retail portfolio from Apollo for some EUR 600 (zł.2,357) million and GE Real Estate's purchase of a major hypermarket portfolio for about EUr 550 (zł.2,161) million were the biggest transactions in Poland.