Tag Archives: green
Investment: Czechs Reap Benefits Of Poland’s Slowing Economy
http://www.ft.com/cms/s/0/c8812ae2-8666-11e2-ad73-00144feabdc0.html#ixzz2Rx5WNGO8 By Katka Krosnar In recent years Poland has attracted most of the commercial property investment in central Europe, accounting for more than 75 per cent of the total volume in some years. This is partly because of the size of the market compared with its counterparts and its success at avoiding recession. Poland has become a core investment market for some western European property funds. Over the past few months, however, there has been a shift, with the Czech Republic gaining popularity as Poland’s market becomes static and concerns grow that some sections of the Polish property market may have overheated, says James Chapman, a partner at Cushman & Wakefield in Prague. The total investment volume in the Czech market is expected to double this year compared with 2012 and will reach €1bn, according to Cushman & Wakefield’s statistics. While total investment in central Europe’s property is forecast to rise this year, Poland’s share is expected to fall slightly, from €2.8bn to €2.5bn. Hungary is expected to see about €300m of investment while Slovakia should receive some €140m, less than elsewhere but a big improvement on last year’s mere €17m. “The current development in Prague of four city centre projects that had not been pre-leased before the launch of construction is an important indication of current confidence in the market,” says Omar Sattar, managing director at property brokerage Colliers International in Prague. After a sluggish 2012, caused by lingering fears about the eurozone crisis and uncertainty after the closure of some German open-ended funds, commercial property is expected to pick up significantly in 2013, with several large office transactions set to close in the first half. The Czech Republic has always been popular with international investors, who consider it a stable market and a “nice place to do business”, adds Mr Chapman. One key to its popularity is a dynamic capital city, in which many wealthy people are making property investments, says Mr Chapman. According to Colliers, Prague accounted for almost half of the value of domestic transactions in 2012. For example, CPI, the Czech investor, acquired 18 retail properties in 2012, while CTP, a Czech Republic-based business park developer, bought Belgium company WDP’s Czech portfolio and the Honeywell facility in Brno. While western Europeans, particularly the Germans and UK-managed funds, continue to be core investors, the region has attracted money from Qatar, South Korea, the US and Canada. Investors have focused on prime assets since the crisis. At the 2007 peak, many were happy to buy new buildings in almost any location but now projects have to be in a good location or be top quality to attract investment. In recent months there has been a noticeable shift, with investors showing interest in higher-risk assets, such as those needing reconstruction, says Kinga Barchon, leader of the property team at PwC in Warsaw. Strong macroeconomic indicators and the availability of good-quality assets will still attract investors to Poland, says Ms Barchon. As in other markets, limited access to credit has narrowed the field of investors and developers. Often only those who can fund early stage construction themselves, and find credit later, can start projects that are not pre-leased, Mr Sattar of Colliers says. Office developments accounted for 61 per cent of the total value of investment transactions in the Czech Republic and almost 40 per cent in Poland. These have focused mainly on capital cities, accounting for 90 per cent or more of commercial property investment. In the first three months of this year, some €646m was invested in office developments, with significant transactions including the purchase of New City in Warsaw by Hines, which has its base in Texas. Ms Barchon says Polish cities Wroclaw, Krakow, Gdansk and Poznan are attracting a lot of developer interest. However, residential property investment in Poland is expected to decline following the end of government support for people buying smaller apartments. Continue reading
Europe Commercial Investments Jump in First Quarter
By Francys Vallecillo | April 19, 2013 11:12 AM ET Commercial real estate investments in Europe increased by 11 percent in the first quarter from a year ago, led by office space investments in core markets, according to new data from CB Richard Ellis. Europe commercial property investment during the first quarter totaled €29.4 billion, an increase from €26.5 billion a year ago. The surge was dominated by a 48 percent increase in investment activity in France, followed by a 32 percent jump in activity in Germany, the firm reports. Investment activity U.K. increased by 8 percent from the same period a year ago, according to CBRE. “With Europe still in recession investors continue to focus on the core markets – reflected in the performance of markets such as London, Paris and the German cities over recent months,” said Jonathan Hull, head of EMEA capital markets. “There is also some indication that investors are more actively looking at the southern European markets as investors start to seek yield instead of just capital preservation.” Countries in the region affected by the euro crisis also reported increased investment activity, with Ireland reporting its second consecutive quarter of higher investment activity. The country is seeing the highest level of investment activity since its peak in 2007, CBRE reports. Portugal and Spain also reported increases compared to the first quarter of 2012, although CBRE didn’t provide specific numbers. Italian commercial real estate investment increased by 38 percent compared to the previous quarter, but was lower than the first quarter of 2012, which included a large transaction. Investments in office space totaled €12.9 billion, accounting for 44 percent of total European investment activity. Industrial investment increased 13 percent to €3.7 billion, which was higher than the 8 percent long-term average for the sector, CBRE noted. During the first quarter, retail investment accounted for a little more than 25 percent of overall European activity, with the U.K. and Germany leading with €2.4 billion and €2.1 billion, respectively. With the number of transactions still low, CBRE warns it is still premature to draw conclusions about the European real estate market from the latest numbers. Yet, the market is expected to perform better, as financial markets continue to largely ignore issues related to the Italian election, the Cyprus banking crisis and Portugal’s budget issues, CBRE predicts. Continue reading
Investor Demand Driving Farmland Prices, says Knight Frank
By +Peter Mindenhall Friday 19 April 2013 Farmland continues to be seen as a preferred property investment option for many buyers, according to a new report. Research conducted by Knight Frank indicates that average farmland values in England rose by 1.5 per cent in the first quarter of 2013 to GBP 6,307 per acre. Increased demand for land has seen prices increase by four per cent in the last 12 months and 207 per cent over the last ten years. Knight Frank noted that farmland continues to outperform many other asset classes over the mid to long-term, predicting a further increase of between four and five per cent in the next 12 months. The firm said that although investors – fed up of poor returns – seem to be moving away from low-yielding ‘safe-haven’ investments, such as AAA-rated government bonds, there continues to be strong interest in farmland. Some of this demand can be attributed to famers paying a premium to secure land adjoining, or close to, their existing units. Tom Raynham, from Knight Frank’s Farms & Estates team, claimed that farmland still has “a valuable role” to play in investment portfolios. “Even though stocks and shares are back in favour, the markets remain volatile,” he stated. “Land offers something more tangible, yet still has the potential to provide good capital appreciation.” Mr Raynham said that for private investors, it also offers significant tax and amenity advantages. “This combination of benefits has seen increased activity in Lincolnshire, the UK’s arable heartland, with some large blocks of good arable land recently making over GBP 10,000 per acre,” he noted. James Prewett, head of regional farm sales at Knight Frank, claimed there is still a shortage of supply and, while more marginal land may have a lost a little of its value, demand remains strong for commercial units. Continue reading
