The retail and hotel sectors recorded the highest investment volumes in the Croatian commercial property market in 2017, research presented at Mipim by Colliers International shows.
Over €320 mln was invested across 22 properties, according to the broker’s latest estimates of reported deals. This does not include pending transactions or confidential deals.
The main drivers of the retail sector in Croatia are economic growth, high consumer spending and rising real wages. Zagreb’s rapid tourism growth has resulted in increased interest in high street units among F&B operators, which in turn bring more international chains and new gastronomy concepts to the market, Colliers said.
Austria’s Supernova group continued its push into the shopping centre market by acquiring seven properties in 2017. It purchased Branimir Centar and Kaptol Centar in Zagreb from Zagrebacka Banka. The group also bought Colloseum in Slavonski Brod, Garden Mall in Zagreb, retail parks in Koprivnica and Sisak, and Cvjetni shopping centre in the Croatian capital.
The King Cross Jankomir mall in Zagreb was acquired by SES Spar EU Shopping Centers in H2 2017.
Hotel and luxury residences
The hotel market is currently experiencing strong activity, predominantly from local investors. Quality properties are hard to come by, but value-add/distressed assets and brownfield opportunities are also in demand.
No new large tourist resorts were added to the market in 2017 as investors were opting for less risky brownfield opportunities, Colliers said. The construction of the tourist resort in Brizenica Bay by Arqaam Capital and Four Seasons is set to start in the course of 2018. The resort will be located on a waterfront site at Brizenica Bay, Island of Hvar. It will feature a 120-key Four Seasons hotel and 60 luxury residences.
Restructuring and Sales Center (CERP) has accepted the €23.3 mln offer for the majority of shares in Hoteli Makarska from the highest bidder Valamar Riviera (in cooperation with pension fund Allianz ZB). CERP has also accepted the €26.9 mln offer for hotel company Jadran in Crikvenica from pension funds PBZ Croatia and Erste.
Other deals in 2017 include German tour operator TUI purchasing 50% of Punta Zlatarac Tucepi for €31.5 mln from Tucepi Hotels, part of Sunce Group. Punta Zlatarac owns and operates the TUI Blue Jadran hotel with 161 rooms.
Serbia’s MK Group acquired Skiper Resort in Istria from bad bank HETA. Skiper Resort comprises the 5-star Hotel Kempinski Adriatic with 186 rooms, Skiper residences (200 apartments and 22 villas) and an 18-hole golf course.
