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Q1 investment transactions on the CEE commercial real estate market reach €1.44 billion

Czech Republic is ahead of Poland in terms of concluded transactions volume.

According to preliminary Q1 2015 estimates by JLL, the total volume of investment transactions finalized on the commercial real estate markets in the CEE region hit €1.44 billion. The Czech Republic accounted for €731 million, followed by Poland (€458 million) and Romania (€140 million).

Troy Javaher, Head of Capital Markets CEE, JLL, commented: “It appears that 2015 will be another robust year for the investment market in the commercial real estate segment. According to our initial estimates, at the end of Q1 2015 the volume of concluded transactions reached ca. €1.44 billion. What is also worth noting is that after Q1 the Czech Republic is the leading investment market in the Central and Eastern European region and is ahead of Poland. Our conservative forecasts for the year show that the total volume of sales and acquisitions will be comparable, if not higher, than that of the very impressive results seen in 2014.”

Stuart Jordan, Head of Capital Markets Czech Republic, JLL said: “2015 is shaping in to another intensive year for JLL’s capital markets team based in Prague, with active mandates spanning all sectors and value spectrums of the commercial property market. Weight of capital is pushing investors up the risk curve and in to regional well positioned product, hence the comparative volume of product which is liquid and which could trade this year far outweighs that in 2014. The Czech Republic has emerged as a very attractive location for foreign capital from across the world due to specifics such as transparency and maturity, a healthy and stable economic and political situation as well as still offering positive real estate price arbitrage against other European markets.”

The largest transactions recorded in Q1 2015 in Czech Republic occurred in retail sector. These include Palladium in Prague acquired by Union Investment, a portfolio of 72 regional retail units sold by Atrium to Peakside. Advised by JLL, AIG Lincoln sold their Campus Square in Brno to CBREGI. One of the biggest investment transactions by volume and the largest in terms of square meters to be finalized in Q1 2015 in the CEE region was P3’s purchase of a logistics portfolio situated mainly in Bucharest (Romania), Błonie and Piotrków Trybunalski (Poland), from CA Immobilien Anlagen AG. The transaction totalled 467,000 sq m of space and 165 ha of investment land. JLL advised P3 on the transaction.

A busy year for JLL

Good market conditions as well as investor interest in real estate located in the CEE region is visibly reflected in the number of ongoing negotiations. JLL, as a leader in terms of strategic investment advisory services in the CEE region, has an active mandate volume across the CEE & SEE of over €5.4 billion, all at various stages of advancement. JLL Capital Market teams in the Czech Republic and Poland currently account for €2.2 billion and €2 billion ongoing transactions respectively.