Owners of B-class properties in Central and Eastern Europe are being urged to create large portfolios to entice investor interest. Although there is significant demand for prime assets in the region, the market for B-class buildings is in hibernation, according to Andreas Ridder, CBRE's managing director in the region and CEE director Patrick O' Gorman.
Owners of B-class properties in Central and Eastern Europe are being urged to create large portfolios to entice investor interest. Although there is significant demand for prime assets in the region, the market for B-class buildings is in hibernation, according to Andreas Ridder, CBRE's managing director in the region and CEE director Patrick O' Gorman.
B-class properties are almost impossible to sell on an individual basis, Ridder told PropertyEU during an interview at Mipim in Cannes. A potential solution is to create EUR 200-300 mln portfolios of B-class assets around a platform that would be interesting for international investors.
' With B-class properties you have to sell a story. Present investors with a portfolio of five or six properties that they can work with,' O' Gorman added.
In contrast A-class properties - particularly ticket sizes of EUR 50 mln with 3-5-year leases - are in big demand in the main CEE markets. Russia, Poland and the Czech Republic were the motors of the region last year and the situation is unlikely to change in 2012.
