Central Europe investment edges upwards

Investment volumes in Poland, the Czech Republic and Hungary increased in the first quarter of 2013, Cushman & Wakefield reported.

The property adviser recorded €958 mln of investment in the region during the first three months of the year. The result was some 6% above the 5-year average, but down on the previous quarter's volume of €1.8 bn.

C&W said positive investor sentiment and underlying activity suggested investment volumes for the year should match those achieved in 2012.

Charles Taylor, partner at Cushman & Wakefield: 'Investor activity has increased marginally. Some investors are considering taking more risk and reviewing the more developed and relatively mature parts of CE and finding not just a yield advantage and better relative economic growth than in the west, but also an improving level of liquidity.'

Investment volumes in Poland, Czech Republic and Hungary increased by some €258 mln following the distribution centre joint venture between Norway's giant government pension fund and Prologis. This €2.4 bn transaction, which was announced at end-2012, represents 50% of the total investment into the industrial sector across CE during 2012.

Although a significant part of the Prologis/Norges portfolio is located in Poland, this market saw volumes decline in Q1 2013 with €465 mln invested compared to €818 mln in Q1 2012 and €618 mln in Q1 2011.

The Czech market saw a recovery in Q1 with six transactions closed and volumes up at €237 mln, compared with just €20 mln for the same period in 2012. Similarly, Hungary attracted €159 mln in Q1 2013, significantly up on the same period in 2012.