Poland: Highest Annual Volume of Transactions in History

Transactions in the retail sector were dominant last year, accounting for around 55% of the total volume.

Image: Sfera; Credit: CBRE
Image: Sfera; Credit: CBRE

In accordance with the latest research by Savills, the annual volume of investment transactions in 2015 in Poland exceeded €4.0 billion, which was the second-highest result in history, while the last quarter of the year was the most active one ever recorded.

 

 

Image: Bonarka; Credit: CBRE
Image: Bonarka; Credit: CBRE

Michal Cwiklinski, head of investment in Poland, said: “It has been almost a tradition in Poland that the last quarter of the year has a massive influence on the end-year investment volume. The last quarter of 2015 was no exception, with the highest quarterly investment volume in history.”

 

 

Image: Bonarka; Credit: CBRE
Image: Bonarka; Credit: CBRE

The international real estate adviser highlights that the end-year result was boosted by two large share deals: Oaktree and Pimco’s takeover of a majority stake in the Echo Portfolio (managed by Griffin Real Estate) and TPG Real Estate’s acquisition of some of Trigranit’s SPVs.

 

 

Dominant retail sector

Image: Bonarka; Credit: CBRE
Image: Bonarka; Credit: CBRE

Transactions in the retail sector were dominant last year, accounting for approx. 55% of the total volume. Michal Cwiklinski added: “Investment activity in Europe has been rising, especially in the retail sector. The last quarter of 2015 confirmed that this trend is also the case in Poland, despite a shortage of decent investment products.” Such a high result in the retail sector was the consequence of a few large transactions, e.g. the acquisition of Riviera Shopping Centre in Gdynia by Union Investment (for €291 million), the acquisition of Stary Browar by Deutsche Wealth Asset Management for around €285 million, the acquisition of the Karolinka and Pogoria shopping centers by Rockcastle for €221 million, the acquisition of Bonarka City Center by TPG Real Estate for approx. €285 million, and the acquisition of Galeria Sfera by CBRE Global Investors for around €200 million. Savills remains optimistic about the 2016 results, expecting investor activity to bring this year’s volume to a similar level to that of 2015.

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