Investment in Czech commercial real estate could 'easily' reach the €2 bn mark in 2016 as a number of single assets and portfolios are expected to come to market over the next few months.
Investment in Czech commercial real estate could 'easily' reach the €2 bn mark in 2016 as a number of single assets and portfolios are expected to come to market over the next few months.
'A number of investments that were acquired during the pre-crisis years (i.e. before 2008) are likely to come to market as investors seek to capitalise on the recent trend of yield compression. The yields for prime product are set to hit new market peaks and could surpass the 2007 levels,' commented Tomáš Berka, senior associate at Colliers International's capital markets team in Prague.
The most anticipated transaction in 2016 will be the sale of The Park in Prague. The property - the largest business park in CEE - traded for €280 mln in 2013 and it could now fetch as much as €350 mln, according to the broker.
In 2015, offices represented the most active market segment with 19 transactions closing over the year. In the commercial real estate sector, the largest deal was the sale of €570 mln Palladium in Prague, a mixed use project comprising of Class A offices and a prime shopping centre of 40,000 m2.
