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
IBM to open its fourth business services center in Romania

US-based IT giant IBM announced it would open a new business center in Cluj-Napoca this July, the fourth center operated by the It company in Romania, after Bucharest, Brasov and Timisoara.

 Read Full article »
SAP ranked first among Europe's most valuable brands in 2017

SAP, leading company in digital transformation, ranked 1st among Europe's most valuable brands, according to the 2017's edition of BrandZ Top 100 Most Valuable Global Brands, with a brand value of 45.194 billio

 Read Full article »
Nokia invests 73 million Euro in expanding its campus in Timisoara

Finland-based company Nokia said it will be expanding its campus in western city of Timisoara with the biggest research and development (R&D) center in the Romanian telecom industry and the total investment exc

 Read Full article »
Romania's Fribourg Capital launches 20 million Euro investment fund for startups

Romanian investment firm Fribourg Capital said it has launched Fribourg Digital, a 20 million Euro investment fund which targets startups in the IT sector, according to a company statement quoted by seenews.

 Read Full article »
Avangate plans to hire 45 IT specialists for its office in Romania

Avangate, the global eCommerce and subscription billing platform for software, SaaS, and digital solutions, with Romanian roots, which recently acquired the 2Checkout global payment processor, will hire 45 IT s

 Read Full article »
Qualitance made the FT's list of Europe's fastest-growing companies

The global technology innovation company with headquarters in Romania, US and Australia was ranked 612 on the list of 1000 European fast-growing firms, with a revenue growth of 165 per cent between 2012 and 201

 Read Full article »
Colliers: More than 265,000 sqm of office area is scheduled for delivery in 2017

More than 265,000 sqm of office area is scheduled for delivery in 2017, broadly in line with the level received in 2016, according to the recently launched market report of Colliers.

 Read Full article »
Societe Generale European Business Services reaches 1,000 employees in the shared service in Bucharest

Societe Generale European Business Services, the shared service center for Societe Generale Group, has reached 1,000 employees due to an accelerated growth over the last three years. Societe Generale European B

 Read Full article »
Adecco: Romania sees 40 per cent increase of recruitment in Q1 2017

This year had the best start of the last decade, from the perspective of recruitment volumes, being recorded in Q1 a growth of over 40 per cent of the recruitment against the same period of last year, and t

 Read Full article »
More than half of Romanian companies plan cybersecurity budget increase

According to a joint PwC Romania and Microsoft Romania survey launched recently, "Security in the Digital World", investments in cybersecurity are mostly driven by regulatory requirements instead of the organiz

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Grégoire Vigroux appointed the new Vi...
» Romanian Outsourcing Awards for Excell...
» Romanian Outsourcing Awards for Excell...
» SocGen's EBS division to grow 60%, exp...
» Bombardier: from Bucharest subway to t...
» Ericsson and Skanska trial IoT for Sma...
» OT Learning & Development Roundable ta...
» AFI Europe Romania and Dedeman sign ag...
» TELUS International Europe: E-book: Ho...
 
EDITOR CHOICE
Technology, friend or foe

How well do we understand the multitude of tools that are one touch away from us and how do we make the best use of it in terms of work efficiency, effectiveness and safety? Another of the biggest questions in

 Read Full article »
The future is now - Review of Romanian Outsourcing Summit, 2017

Romania delivers services in 25 languages with more than 100,000 specialists employed in the outsourcing industry and business services, and based on an estimated growth of 15-20 per cent, it is estimated to re

 Read Full article »
TELUS International Europe: How the travel and hospitality industry can get ahead with omnichannel customer service

For companies in the travel and hospitality industry, having an omnichannel strategy is becoming critical to compete in a complex market of both  Read Full article »

Genpact's COO: Staying ahead of the curve

Shibu Nambiar has over 18 years of experience in the services industry, covering roles in operations, project management, service delivery, product development, domain management and training.

 Read Full article »
Reshaping the industry mindset

The business shared services industry in Romania is living a fantastic youth, but may be heading towards a maturity that may come sooner than expected, thanks to disruptive emerging technologies and the urgent

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