About 鈧�100 mln of commercial real estate was traded in Slovakia during the first six months of 2013, and Colliers International predicts this will climb in the second half as the market is beginning to 'wake up'.
About 鈧�100 mln of commercial real estate was traded in Slovakia during the first six months of 2013, and Colliers International predicts this will climb in the second half as the market is beginning to 'wake up'.
Colliers International claims it executed two-thirds of these transactions on behalf of its clients.
The central European country's real estate investment has been stagnant in recent years due to the global economic crisis. There was hardly any trading of quality real estate stock in 2011.
Colliers International sees signs, however, that the market is beginning to stir and investors are becoming more active and investment volumes may return to the 2008-level. The volume of commercial real estate investments reached about 鈧�100 mln - mainly thanks to one large office deal - in the first six months of this year.
The international property adviser expects the increased activity on the investment commercial property market to continue in the second half and predicts that the volume of investments will climb to 鈧�200 mln. 'We are seeing greater demand on the market, particularly for quality commercial buildings that are characterised by long serviceable life, low operating costs and have creditworthy tenants contracted for a long term,' Ermanno Boeris, a company director at Colliers, said.
Italian insurance giant Generali Group and NEPI, a South African investment fund that invests in Central and Eastern European real estate, have been active recently.
In early July, Ceskapojistovna, the largest Czech insurer and part of the Generali Group, acquired two buildings at the Apollo Business Center IV office complex in Bratislava from developer HB Reavis.
The financial details were kept confidential. However, well-informed independent market sources told PropertyEU that the gross transaction price came to around 鈧�80 mln, reflecting a net yield slightly above 7%.
As part of the larger Apollo Business Center complex, Apollo Business Center IV consists of one 16-storey and two 6-storey blocks totalling 32,400 m2. The centre recently received an international green building BREAM - Very Good certificate.
'This is yet another investment transaction confirming our own forecasts, namely that this year the volume of investments in Slovakia will reach the level seen in 2008,' said Ermanno Boeris, a director of Colliers International who represented the buyer in the sale process.
Separately, NEPI made a non-binding offer in April to acquire the Aupark Shopping Centre project in the city of Zilina from HB Reavis. The transaction is expected to close before the end of July 2013.
A manufacturing plant at the Sucany Industrial Zone near Martin also changed hands in the first half of the year. Local investor Tatra Asset Management acquired the 17,000 m2 building from Bratislava-based construction materials firm Ingsteel at a price reflecting a 9.1% yield.
Colliers International represented the vendor.
