Investor sentiment is improving in Central and Eastern Europe, according to transaction data published over Q1 in the May edition of PropertyEU Magazine.
The biggest CEE property deal since 2008 took place in the Czech Republic when European Property Investors Special Opportunities (EPISO) entered into a 80:20 joint venture with VGP for a logistics portfolio focused around Prague. The venture is valued at approximately EUR 300 mln. The semi-industrial logistics complexes, the majority of which were built between 2005 and 2010, are concentrated in and around Prague.
Poland, particularly Warsaw, is also seeing strong activity. Earlier this year ING REIM acquired 50% in Wars-Sawa shopping centre in Warsaw for EUR 76 mln, while fund manager Deka bought North Gate office complex, also in Warsaw, for EUR 103 mln. Further afield, Austria's Immofinanz acquired the Gold Plaza Project shopping and entertainment centre in Romania for about EUR 70 mln.
After a considerable period of illiquidity following the global economic downturn, transaction activity outside Central Europe has started to re-emerge. Towards the end of 2010, investment activity in South Eastern Europe had already started to improve, a trend that has continued in 2011, CB Richard Ellis said in a recent report. Croatia, Bulgaria and Romania have all seen a return of institutional investors and transactions, a recent example being the sale of a retail park in the Bulgarian regional city of Plovdiv to Europa Capital.
Read the Deal Analysis in the May edition of PropertyEU Magazine. Click on the link below to subscribe.