The investment volume in Central Europe hit €1.56bn in Q3, up 25 percent from the same period last year, according to figures released by Cushman & Wakefield. Analysts are predicting this year’s volume will likely reach €7bn. P3’s acquisition of Tristan Capital Partners’ €523m industrial portfolio was one of the largest deals to close in Q3. “The summer was not a holiday season for investors,” said James Chapman, head of CE capital markets at Cushman & Wakefield. “Given the considerable pipeline of transactions which may close by the end of December, this year’s total is expected to be the highest in the last seven years and the trend is set to continue into 2015.”
The largest investment volume for Q3 (€425m) was registered in Poland. The Czech Republic is also experiencing a significant increase. Romania (€375m), Slovakia (€325m) and Hungary (€157m) all posted strong performances.
The industrial market also grew in Q3. However, it is the return of retail investment that will likely set a new trend for Q4 and 2015.
“Retail investment has not yet seen the bounce back experienced in the other sectors,” said Chapman. “However, investors have woken-up to the exceptional consumer spending growth forecasts for the CE region and prices for quality schemes are increasing, including those in regional cities. This is causing sellers to consider bringing strong centers to the market and so we expect to see significant activity during the next 12 months.”
