This interview was first published in Property Forum’s annual CEE TOP 100 publication.

How would you summarise Indotek Group’s international expansion strategy? What kind of assets are you looking to add to your portfolio?

Our focus is on securing assets with solid underlying property fundamentals, yet in need of fresh capital to realise their full commercial potential. We are bringing liquidity to parts of the European real estate market that have become relatively illiquid, mainly due to the increased cost of capital & more negative general sentiment towards certain asset classes.

We can invest across 4 commercial sectors (retail, office, industrial & hotel) in 12 different European markets.

Tim Wilkinson MRICS

Head of European Acquisitions
Indotek Group

Tim Wilkinson previously worked as Partner, Capital Markets at Cushman & Wakefield Romania. He joined the office in Bucharest in 2004 and significantly contributed to the development of the business in Romania, predominantly coordinating the advisory services for occupier and landlord clients in the office, retail and industrial sectors, as well as supporting the development of the professional service departments, including valuation, investment, research and property management activities. Tim’s real estate background includes over 17 years of experience in the CEE region, working within the DTZ Poland and Hungary offices, as well as working in the DTZ London office. He has been involved in some of the most pioneering and significant investment deals in Romania over the past 12 years, including the acquisition of Domnesti Business Park (by IOG at the time), Mercury Logistics Park by Heitman, Cefin Logistics Park by Europolis and the joint venture between GE Real Estate and Helios Phoenix. More »

Which are the European markets where you see potential for investments in the medium term?

The repricing of Western European markets over the past 2 years has created a compelling environment for our investment strategy in countries like Spain & Italy. This has made CEE & SEE look relatively expensive in the context of the wider European market, given the more limited repricing that we have seen in the region. As an opportunistic investor, we expect those Western markets to continue to offer an attractive environment for us.

CEE & SEE will continue to be an important focus for us, but as we feel that the repricing of the region is still playing out, it may be more challenging to find the right opportunities in the short term when compared with markets further West.

How are you keeping your property portfolio up to date considering the emerging trends in the real estate sector?

We are an active, hands-on manager of our portfolio and therefore close to changes in the market that can create opportunities or challenges. Our European team is rapidly growing and having strong in-country capabilities gives us strength in both the understanding of each market and the ability to act fast.

How important are ESG credentials for your acquisition strategy?

We tend to buy assets that need upgrading and repositioning. This gives us the ability to be able to assess ESG compliance & strategy as part of the acquisition process, to ensure that we are building this into our business plan upfront. The subject of ESG has also created opportunities for us, where owners seek to divest to transfer future CAPEX needs related to ESG to new capital.

What are your expectations from the financing environment going into 2025 considering the reduction of interest rates?

I feel that debt markets will remain challenging in 2025 for assets other than prime. The cost of debt will drop but given the spectrum of global risks, I maintain a cautious outlook on the debt markets over the next 12 months.

Which real estate segments are slated to generate deal volumes in CEE this year?

I believe that 2025 will be dominated by logistics and retail transactions, with some strategic divestments in the office market driving up volumes in that sector compared to 2024. The former will be due to improving sentiment in those sectors, the latter driven by the ongoing price discovery following the overall drop in interest in the office sector and uncertainty around the true level of occupier demand.