Prime Warsaw city centre office yields stand at either side of 6. 25
percent. Prime office assets located outside the centre command a
yield of 6.75-7 percent.
Poland Industrial Investment
Prime logistics yields are oscillating around 8 percent. Pricing is
largely driven by the weighted average of unexpired lease terms.
Properties with a shorter residual lease terms generally trade with a
50-75 bps discount of prime.
• A Panattoni portfolio of 80,000 sq m (Ozarow and Pruszkow
near Warsaw) was sold in Q4 2012 to RREEF for 54,000,000
equating to 675 sq. m.
• A Prologis Park, Sosnowiec, of 47,000 sq m was sold to
Hines Global at 425 sq. m.
• A Prologis portfolio of 73,000 sq m was sold in Q1 2012 at
EUR 51,000,000 equating to EUR 700 sq. m.
Hungary Industrial Investment
Prime industrial investment transactions in and around Budapest are
estimated at 9.0 percent; however, there are no recent comparable
transactions. Due to a lack of finance and a difference in pricing
expectations between buyers and sellers, investment turnover was
very low in 2012. As few as four deals were reported during the
course of 2012, accounting for a total of EUR 122 million.
There were no significant industrial transactions. FDI remains
at a very low level with investments limited to development for
Due to the country risk, Hungarian Developers pay two percentage points or more for development finance than in Czech Rep or
Poland which makes development significantly more expensive.
Self financing requirements for developers remains at 40-50 percent.
The institutional investment climate is concerned by the present state of the economy. There is an increasing investment in mezzanine equity positions. Investment appetite is for core office and
prime retail properties. Demand for industrial is limited to prime
parks well leased in good locations and long lease assets.
Slovakia Industrial Investment
The Slovakian investment market saw very low investment volumes
in 2012, registering only one main deal worth EUR 17 million in
all sectors. Prime yields for Greater Bratislava are around 8. 50-8.75
percent and are viewed to be stable but there is no recent evidence
in 2012 or 2013.
"THE SHORTAGE OF PRIME
OFFICE SPACE IN SOME
MARKETS WILL ACT AS
A KEY DRIVER FOR
AN UPTURN IN THE
Czech Republic Industrial Investment
Yields in the Czech Republic appear to be stable with prime yields in
Q4 2012 for industrial ranging between 8.00-8.25 percent for warehousing on good estates or long leases. Total investment volume in
all sectors in Q1 2013 reached EUR 237 millon, which is 12 times
more than in Q1 2012, when only one transaction was completed.
There are however very few investment transactions to analyze.
In Q3 2012, CTP Invest acquired Honeywell Production Facility
for EUR 16 million.
In 2011 European Property Investors Special Opportunities,
L.P. (EPISO Fund), a fund co-advised by AEW Europe and Tristan
Capital Partners, entered into a 80: 20 joint venture with VGP in
respect of a logistics portfolio in the Czech Republic. The portfolio is
concentrated in and around Prague and comprises over 368,000 sq.
m. of completed logistics assets with a further nine buildings totaling 62,000 sq. m. to be developed. VGP’s park in Horni Porcernice,
north east Prague, accounts for 85 percent of the acquired portfolio
value. The transaction value was EUR 300 million.
John Palmer, SIOR,
FRICS is Head
of Valuations and
BNP Paribas Real
Estate Poland and
point of contact for
the coordination of
Portfolio valuations in
Poland and CEE. He is
currently involved with
for major developers,
funds and institutions.