CEE BRIEFING: retail is a hot favourite across CEE

The recent acquisition of Poznan City Center underscores that retail real estate remains a 'hot favourite' across the CEE region, according to CBRE's Mike Atwell.

CBRE advised Resolution Property on the purchase of the Polish shopping centre during March. The parties did not reveal the investment volume but it is believed to have been about €235 mln.

Speaking at PropertyEU's latest CEE briefing in London, Atwell, CBRE's head of capital markets for the region, said investors are employing a number of different strategies in the retail property segment.

The Poznan deal, he said, was an example of big players targeting dominant, prime schemes in major cities. Earlier examples involved 'core' German money. In October 2012 Hamburg-based Union Investment Real Estate finalised the purchase of the Manufaktura shopping centre in Lodz, Poland (for about €390 mln ) and in May last year Allianz Real Estate led the acquisition of Silesia City (shopping centre) in the Polish city of Katowice for €412 mln.

These two deals featured core German money,and in some cases it is partnered with the likes of China's Gingko Tree, as was the case with Silesia City. 'So there is Asian capital and these big investors often partner with an experienced asset manager,' Atwell said. German shopping centre specialist ECE, he noted, partnered with Resolution for Poznan and with Allianz-Gingko Tree for Silesia City.

Atwell said there was a second strand of investors looking outside the big cities. 'There are opportunities in the smaller cities but you have to be careful... If you can find a town where there isn't competition and new supply you've got the dominant centre. There are a handful of players looking specifically for such assets.'

A third group ready to take on value-add retail, for which you have to be ready to 'roll up your sleeves and get dirty with the asset', Atwell said.

Watch the full interview and more on the CEE briefing, by clicking here