Latest News  

JLL: Large investors dominate the Romanian estate market, lower yields

Real estate large investors such as CTP, JLL, P3, NEPI and Globalworth bought Romanian real estate assets worth over half a billion euros during the past year, according to JLL.

2016-02-02 11:29:56 - by Bogdan Tudorache

While financing conditions, although improved, are still less attractive compared to other markets, Romania will attract mainly investors who have adequate capital or funding capacity at regional level, and new names are awaited.

Last year's headlines were written by five investors that have realized about 80% of the total volume of transactions recorded in 2015 in Romania. CTP, GLL, P3, NEPI and Globalworth bought properties in Romania last year worth over 500 million euro, out of the 650 million euros recorded in the entire market.

"Companies such as CTP, GLL and P3 have achieved the largest volumes of investments last year, given that in 2013 and 2014, NEPI and Globalworth were the most active. Local market's investment diversification will continue this year, so we will see new buyers in all market segments. JLL negotiated a series of transactions that could be concluded in the coming months and have a good chance to attract new name investors," says Silviana Badea, head of Capital Markets, associate director, JLL Romania.

Most active buyer in 2015 was CTP, registered in the Netherlands, which acquired six industrial properties in Romania, with transactions totaling more than 130 million euro.

In the office market, after an absence of six years of German institutional funds, GLL bought Floreasca Park and Victoria Center for a total of nearly 130 million euro.

Last year, acquisitions of properties in Bucharest accounted for 80% of total investments registered in the Romanian estate market.

Volumes traded were dominated by purchases of industrial space (41%), an historic high for this market, followed by offices (38%).

The largest transactions in the industrial market in 2015 was the takeover by Europolis Park by P3 from CA Immo and that of the Bucharest West by CTP from Portland Trust.

In the office market, the most notable transactions were the takeover from Portland Trust of Floreasca Park by the German investment fund GLL and the Globalworth acquisition of the Green Court Building B from Skanska.

The only large retail market transaction was done by NEPI, which acquired Iris Titan from Aberdeen, a Scottish company.

JLL was involved in 57% of the total volume of commercial real estate properties registered in Romania in 2015 and in over 70% of transactions in which consultants were involved.

Yield compression

Last year yields in the office and retail market stood at 7.5%, while the industrial segment they are of 9.00%.

"Yields have compressed by 25-75 basis points (0.25-0.75 percentage points) in 2015, but for the first half of 2016 we expect the decline to continue at the same pace considering that, although financing conditions have improved in Romania compared to previous years, interest rates are 2 percentage points higher than in The Czech Republic or Poland.

"This is why investors looking at the local market are mainly those who have their own funds or those who have the capacity to fund themselves at regional level," says Andrei Vacaru, Capital Markets representative, JLL Romania.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Stefanini named Eliza Irimia Financial Director for the EMEA region

Eliza Irimia joined Stefanini IT solutions company, with operations in 39 countries and 88 offices around the world, as Financial Director for EMEA. From this position, Eliza will coordinate the company's finan

 Read Full article »
The business environment - invited to get involved in the development of future employees

Over 5,400 Romanian young people have participated in the Duke of Edinburgh's International Award program in Romania (DofE) over the past six years, the personal development program that gives young people aged

 Read Full article »
Oracle study: Moving To IaaS is fundamental to remaining competitive

Research reveals benefits of Cloud Infrastructure established as a clear differentiator. A survey of 1,600 senior IT professionals explores the benefits and misconceptions surrounding IaaS adoption, according

 Read Full article »
Mihnea Diaconu appointed development manager at Webhelp

Webhelp Romania aims to consolidate and develops its local operations by hiring Mihnea Diaconu as Business Development Director.

 Read Full article »
The biggest FAB LAB from Romania has been opened in Iasi

Based on a concept made by the Miolk team, Fab Lab Iasi has a surface of over 700 sqm and it offers different scenarios for flexible use of the space (competition areas, co-working, makerspace, teaching rooms,

 Read Full article »
Deutsche Bank makes its computer code publicly available for the first time

Deutsche Bank announces it aims to create a common industry standard for trading technology by making its own computer code publicly available for the first time.

 Read Full article »
Deloitte: Leadership disrupted: Pushing the boundaries 2017 Global Human Capital Trends

According to a study of this year conducted by consultancy company Deloitte, today, Many organizations need a completely different kind of leader: a "digital leader" who can build teams, keep people connected a

 Read Full article »
Coface Technologies team already employs 30 specialists in core business applications

Six months after the inauguration of the IT development centre in Bucharest, Coface Technologies has already formed its first functional teams and has also launched the first successful projects, such as the au

 Read Full article »
Pavel Campan appointed as the new Vice-President of Operations for TELUS International Romania

Pavel Campan has been named Vice-President of Operations for TELUS International Romania. This appointment comes at a time when the company is about to reach 1,500 team members locally.

 Read Full article »
Roxana Tesiu appointed as the new Vice-President of Human Resources for TELUS International Europe

Roxana Tesiu has been named Vice-President Human Resources of TELUS International Europe. In her new role, she will lead the HR teams in both Romania and Bulgaria, at a time when the number of team members in b

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» Pavel Campan appointed as the new Vice...
» Roxana Tesiu appointed as the new Vice...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Molson Coors started to grow its busin...
» Manpower:Romania has world's third hig...
» Oracle study: Moving To IaaS is fundam...
» The business environment - invited to ...
» Comdata to buy four subsidiaries of Fr...
» SII Romania moves to a new office in A...
» PwC: The competitive advantages of Rom...
 
EDITOR CHOICE
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events