Join Craig Smith and Winston Norman on the Coffee with Craig Show for your daily dose of CRE news in the CEE region, brought to you by EuropaProperty.com.
Colliers Reports Increase in CEE Investment Volumes
The first half of 2024 saw Central and Eastern Europe (CEE) investment volumes rise by 29% year-on-year, contrasting with subdued activity in Europe and globally. Colliers’ latest report suggests 2024 volumes could reach €5.5 billion, about half of the 10-year average. Financing costs remain high at 5.00 – 5.75%, driven by higher interest rates. Poland led regional volumes with almost 50%, and significant year-on-year growth was recorded in some markets, despite a 41% decline compared to H1 2022. The office transaction share declined globally and in CEE, with retail retaining the largest sector share. Economic, inflationary, and interest-rate conditions continue to influence market recovery.
Retail Park in Gorzów Wielkopolski Sold for €40 Million
Equilis and Acteeum sold the Silwana retail park in Gorzów Wielkopolski to Big Polska for €40 million, marking one of Poland’s highest commercial property transactions this year. Renamed Big Gorzów, the 25,000 sqm park features 40 shops, including new brands like Decathlon and Half Price, and an 800-space car park. Scheduled to open on August 22, Big Gorzów is Big Polska’s fifth investment. This sale is notable as the first from Equilis’s Duodev 2 fund portfolio.
“Our activity on the Polish market, where we have built a portfolio of five excellently located investments in less than two years, consolidates our position in the retail park sector in Poland”, said Eran Levy, CEO of Big Polska.
“The sale of the park before its opening is a very significant achievement for Equilis. We are also dealing with the first sale from the Duodev 2 fund’s portfolio of assets since its creation in 2022”, commented Olivier Beguin, CEO of Equilis Europe.
Fio RE Fund Acquires Czech Industrial Park
Fio investiční společnost’s Fio real estate fund has acquired GARBE Park Chomutov, an industrial park near Chomutov’s main train station, for €33 million. The park, with a total area of 29,600 sqm, boasts a level A energy performance certificate and strong logistical connections. Advisors for the transaction included Havel & Partners, ASB Group, Wilsons, TPA, OM Consulting, and Cushman & Wakefield.
“This is the second successful sale for GARBE in Central and Eastern Europe in the last two months. After a three-year development cycle, we are now at the phase where we are offering our first projects for sale to investors, not only in the Czech Republic but also in Slovakia and Poland,” says Martin Polak, Managing Director of Central & Eastern Europe at GARBE Industrial Real Estate GmbH.
” We carefully choose properties for our real estate fund and thanks to this fact, our fund can be interesting for clients with its diversified composition,” adds Jan Bláha, Chief Commercial Officer at Fio Banka.
