Real estate deals in Central Europe 14% up in Q2 y/y

Transaction volume in Central European countries: Poland, Czech Republik, Slovakia, Hungary and Romania, stood at €754 million in Q2 2014, 14 percent more than in 2013, according to data published Cushman & Wakefield. Over the first six months of the year, the total value of investment deals was €2 billion, 12 percent higher than in H1 2013. Given the significant pipeline of transactions, particularly in the retail segment, year-end volumes are expected to exceed 2013 levels. The office segment once again dominated real estate deals, with 42 percent of the entire volume. The largest investment deal made in the CE region between April and June 2014 was the PPF’s purchase of City Tower skyscraper in Prague 4. ING Real Estate’s sale of its remaining 50 percent share in Allee shopping mall in Budapest for €95 million was the biggest CE retail investment transaction in Q2. Other significant deals included Meyer Bergman’s acquisition of Fashion Arena in Prague and CBRE Global Investors’ acquisition of Galeria Mazovia shopping center in Płock, Poland. The Czech Republic saw the highest volume of transactions over the second quarter, however, half year results show that Poland continues to attract the strongest investor interest. “Core investors are looking at Poland and Czech for prime, landmark shopping centres, viewed to offer better value against other core European countries whilst the regional cities across both countries have opened up with a significant shift of core and value-add capital towards this sector,” said James Chapman, head of CE Capital Markets at Cushman & Wakefield. “Prime shopping centres in Hungary and Slovakia are also back on the radar for investors searching for stock,” he added.