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Buoyant year for Polish investment market – transaction volumes to exceed €3.1 billion by the end of the year 2013 transaction volumes currently stand at €2.064 billion

Jones Lang LaSalle summarizes investment transactions concluded on the Polish commercial real estate market by the end of Q3 2013


​According to Jones Lang LaSalle’s analysis, the volume of transactions completed on the Polish commercial real estate market by the end of September hit approximately €2.064 billion with Q3 transactions worth €1.04 billion. Jones Lang LaSalle expects that by the end of the year investment transactions volume will exceed €3.1 billion, which would be comparable with 2007.

According to Jones Lang LaSalle’s data, in terms of particular market segments, the volume of office transactions recorded by the end of Q3 reached approximately €830 million, retail – €780 million, industrial – €325 million, mixed use – €115 million, and hotel – €14 million.

In Q3 alone, the volume of office transactions came in at €210 million, with retail transactions totalling €575 million, industrial at €140 million and mixed use at €115 million. The total volume of transactions recorded in Q3 was approximately €1.04 billion. Major deals concluded in each market segment in Q3 include Silesia City Center (about €400 million, Katowice) – the largest 2013 real estate transaction both in Poland and in the CEE region), Galeria Dominikańska (approximately €152 million, Wrocław) and office buildings - Mokotów Nova (€121 million, Warsaw) and Aquarius Business House (€42 million, Wrocław).

Transactions that have not yet been closed and are expected to be concluded in Q4 2013 include Le Palais office building (Warsaw), and in the retail segment – the Charter Hall portfolio (Cracow, Katowice, Wrocław, Szczecin and Gliwice) and Wola Park (Warsaw).

Agata Sekuła, Head of Retail Investment, Central Europe, Jones Lang LaSalle, commented: “According to our research, the total volume of investment transactions on the Polish commercial real estate market in 2013 will exceed €3.1 billion, which will be comparable with 2007 and almost a 15% increase year-on-year. Poland, which accounts for 70% of 2013 transactions in Central Europe, remains a leading market in the region. It should be stressed that 2013 is also a very good year for the retail investment market. If investors execute their plans and manage to finalize deals that are scheduled to be concluded in Q4, the total volume of retail transactions may reach €1.7 billion, significantly exceeding 2012's €1.07 billion”.

Poland Capital Markets Q3 2013.png

 

In markets outside Warsaw, investors activities focus not only on leading shopping centres, but also on promising office schemes.

Tomasz Puch, Head of Office & Industrial Investment, Jones Lang LaSalle, explains: “Analysing such transactions as the sales of Green Day or Green Towers in Wrocław, Green Office C in Cracow, as well as Arkońska Business Park in Gdańsk, we observe that office markets outside Warsaw continue to attract increased attention from companies searching for leading investment products. The result of this year’s transactions will be increased investor interest in 2014, which will probably result in the improved liquidity of the regional markets”.

Jones Lang LaSalle experts provided strategic advisory services in major sale/acquisition transactions in Q3 2013. These transactions included:
- in the office sector - Mokotów Nova (Ghelamco), Green Day (Skanska), Green Office C (Buma)
- in the retail sector - Silesia City Center (Allianz led consortium) and Galeria Dominikańska (joint venture Otto Family and Deutsche EuroShop AG)
- in the industrial sector – Diamond Business Park Piaseczno (GLL) and Raben Portfolio (Pramerica)