CI: transactions on commercial real estate market worth €570m in H1 2010

2010-09-08

In H1 2010, the Polish commercial real estate market saw five large transactions, which accounted for nearly 70% of total market activity. Investors principally focused on buildings in the upper end of the market, as indicated by a report prepared by Colliers International (CI).
CI data demonstrates that the average transaction value in H1 2010 exceeded €80m, whereas the total volume of completed transactions was around €570m. Compared to the corresponding period of 2009, this figure represents growth of nearly 200%. The largest transactions executed in the first six months of the year included the sale of the Horizon Plaza office building in Warsaw (€102m), the Trinity Park III office complex in Warsaw (€93m), the portfolio of Panattoni (five warehouse buildings sold in a €91m transaction), the Grunwaldzki Center office building in Wroclaw (€77m) and the first phase of the Millennium Park complex in Warsaw (€55m).
According to CI analysts, Poland is the leader in the lease markets of Central and Eastern Europe, offering high-end facilities at more affordable prices than those in Western Europe. Investment funds willingly chose Warsaw to invest capital; Wroclaw grabbed some of their attention as well. During the period under review, investors were interested in high-class buildings located in attractive spots, characterised by stable financial flows and reliable tenants.
In the opinion of CI experts, transaction activity in the real estate market in 2010 as a whole will continue at a stable level, as indicated by a large number of properties which undergo due diligence or those whose sale contracts are about to be finalised.