Office investment deals at €700 million in H1 2014

Office properties dominated the investment market in Poland in the first half of 2014, with the deal volume in this segment accounting for over 50 percent of the total investment value of €1.4 billion, real estate advisory DTZ wrote in a report. The retail sector came in second, with a 26 percent market share, and the industrial sector – third, with 22 percent. “Such a high volume of transactions involving office schemes resulted from the sale of three major assets located in Warsaw: Rondo 1, Lipowy Office Park and Atrium 1,” the report said. German investors were the most active players on the Polish market during the first six months of the year and were responsible for 28 percent of the total transaction volume. US funds increased their market share to 20 percent of the total transaction volume, while companies from the UK and Ireland maintained their relatively strong market position, mainly as a result of the acquisition of the Tristan Logistics portfolio by Segro. Yields for prime retail and office assets remained stable compared to values recorded at the end of 2013, at 5.75 percent and 6 percent respectively. Industrial yields decreased from 7.75 percent in 2013 to 7.5 percent at the end of H1 2014, which is due to the growing attractiveness of this sector for investors.