We invest in mid-scale commercial properties in the most dynamic European markets

Poland

A strong and stable economy

Poland is the largest country in Central Europe with over 38 m inhabitants. Its strong economic fundamentals, stable financial and political systems ensure advantages and effectiveness of new investments into the country. Poland was the only country in Europe demonstrating positive GDP growth during the recent global economic downturn.

Booming real estate market

Swiftly developing business activity, large population as well as opportunities of debt financing determine rapid growth of all major real estate segments – office, retail and industrial. Compared with other CE countries Poland stands out in terms of volume, quality and price of modern properties and offer a wide range of opportunities for investors.

Favorable location

Convenient location on the crossroads of numerous trans-European routes makes Poland a perfects destination for international business and trade thus enhancing demand for modern commercial real estate and infrastructure. A dozen of international airports and large Baltic Sea ports strengthen its strategic logistics potential.

Attractive returns

Yields in Poland are still more attractive than in Western European countries by 2-3 basis points for prime properties. Value appreciation prospects and high liquidity attract new market players from all over the world.

High volume of FDI

Poland attracts more than 50% of all investment flows in the Central European region. Numerous foreign companies choose the country to establish their operations and increase investments due to the transparent legal framework as well as political stability and continuous economic growth.

Comparison of prime yields for some European countries

Country Office Retail Industrial
United

Kingdom

4.5% 4.5% 5.2%
Germany 4.65% 4.2% 6.25%
France 4% 3.75% 7%
Spain 5.75% 4.5% 8%
Poland 6% 5.9% 7.1%

Source: CBRE Research

Czech Republic

Competitive economy

Economy of the Czech Republic refers to small open and developed economies, and, being export-oriented, is one of the world’s major exporters of engineering products. It is projected that in the next few years, the growth of the economy will be solely due to the increase in domestic demand. Household consumption is expected to increase by 2.8% in 2015 and 2.3% in 2016

Indicator Forecast
for
2015-2016
GDP growth 2.5-2.7%
Inflation 0.3-1.4%
Dynamics of retail trade 5.4%
Unemployment 5.7%

Favorable conditions for invesment activities

  • stability of the economic, political and social systems of the Czech Republic provides the opportunity to significantly multiply funds by investing in high-quality investment projects;
  • legislation of the Czech Republic that favors the development of private initiatives and foreign investments allows passing through all stages of the project without difficulty: from the search for land for construction to selecting a perfect option for financing the project and a clear focus on an end-user;
  • consistently high demand for both residential and commercial real estate allows to sell real estate pieces at different stages of their development;
  • high quality of real estate pieces and their location in the country with a unique nature, mild climate, well-developed infrastructure in the center of Europe provide a stable demand and investor interest.

Mature market of retail parks

According to Cushman & Wakefield, there were 157 retail parks with a total area of 713,000 sq. m in 2014 in the Czech Republic. Over the past 15 years, the average number of introduced areas was about 50,000 sq. m per year. In the coming years the volume of new development will stabilize at the level of 20-30 thousand sq. m per year.

Demand for premises in retail parks is formed by commercial operators with strong presence in the market. They include mainly food discounters, food and cosmetics stores, electronics, DIY goods.