Property investment volumes jumped 85 percent in Q1 2016 compared to the last quarter of 2015 to €490m according to Colliers. Retail dominated, accounting for 40 percent of the total. The largest transaction of the quarter was the acquisition of a retail portfolio by Palmer Capital (now Arcona Capital) from Atrium Europe Real Estate. The largest single asset deal of the quarter was acquisition of Bondy Centrum Mladá Boleslav for which CPI Group paid €40m. The office market’s share was 29 percent and industrial accounted for 16 percent of the total transaction volume.
Yield compression continues, with investors willing to buy prime properties in Prague city center below 5 percent. “We are expecting that the total investment volume in 2016 will be further influenced by large transactions such as the sale of The Park in Prague 4 and the Olympia Shopping Centre in Brno,” said Andrew Thompson, Head of Capital Markets Czech Republic & Slovakia, Colliers International. “Recent yield compression is most likely to be further supported with the proposed sale of the Florentinum building in the heart of the city which may also achieve a sub 5 percent yield.”
