Real estate investment volume in the fourth quarter totaled over EUR1.8 billion in the major markets in CE, namely Poland, the Czech Republic, Slovakia, Hungary and Romania, similar with 2007, and EUR536 million more than a quarter before, the survey also read.
Overall, EUR3.71 billion was invested in the core CE markets in 2012, accounting for just 59% of the previous year’s record of EUR6.29 billion, but some 25% ahead of 2010.
In the fourth quarter, Poland delivered a strong performance with EUR1.63 billion transacted, accounting for over 90% of the total analyzed region. Overall, Poland attracted EUR2.80 billion in 2012, an increase of 8% on the previous year.
In contrast, the Czech Republic experienced a marked decrease on 2011 volumes, with just EUR497 million transacted in 2012.
Romania and Hungary also saw volumes fall on the previous year with EUR255 million and EUR146 million transacted respectively.
Slovakia, which had experienced no investment activity in the first nine months, achieved just EUR17 million in the fourth quarter of 2012.
The sale of Zlote Tarasy and Manufaktura shopping centers were the largest transactions of the year, although significantly, investors sector preferences across the CE region shifted in 2012 from retail to offices, accounting for 37% and 45%, respectively. CBRE Global Investors and AXA Real Estate acquired the majority stake in Zlote Tarasy, central Warsaw, in a EUR475 million deal, while Germany’s Union Investment paid EUR350 or EUR400 million for Manufaktura shopping center in Poland’s Lodz.
Industrial and logistics sectors increased its share from 8% to 13.8%, although actual volumes declined from EUR881 million in 2011 to EUR512 million in 2012. Investment into the hotel sector accounted for 4.2%.
German investors regained their dominant position in the CE region, accounting for 30% of volumes, with American and French investors responsible for 20% and 14% respectively. UK investors accounted for only 13% of investment in 2012.
“We expect volumes to be marginally ahead of 2012 levels, with a continued focus on prime offices and increased interest in the logistics sector. A reasonable supply of prime assets is expected to come to the market as funds liquidate and developers seek liquidity, and with a number of successful capital raisings closed at the end of last year, investor interest in the region is expected to be maintained,” said Charles Taylor, partner with Cushman & Wakefield, commenting on the prospects for the CE market in 2013.