ARTICLES LABELLED WITH TAG CEE

Tenants in 2017 are looking for a lot more than four walls and a couple of cubicles. Developers and the owners of older schemes will need to adapt to the changing needs of occupiers in order to stay in the race. Our panel of tenants, landlords, developers and advisors at CEE Property Forum 2017 talked about what makes an office attractive in 2017 and what it will take to secure new leases and keep existing tenants happy in the years to come.

Solid economic growth and further expansion on investment markets are expected for 2017 and 2018 in the CEE region with interest rates unlikely to increase until 2019. But even though the short term outlook is highly positive, investors and developers need to be prepared for future challenges. Nearly 400 people from more than 25 countries gathered in Vienna for the fifth CEE Property Forum, co-organised by Property Forum and RICS, to analyse the CEE property market from a global perspective.

The CEO of TriGranit is still optimistic for 2017 on the Budapest property market, but he expects some kind of correction in the coming years. The question is: will this correction take place in the form of a market stabilisation or will it bring on a significant downturn? Árpád Török talked to Property Forum about TriGranit’s plans for new developments and acquisitions.

The markets of Budapest, Bucharest, and Warsaw, in addition to Milan and Oslo, offer the most amenable conditions for both lenders and borrowers, according CBRE’s research.

Increasing political risk on a global level has helped investors look past country risks associated with CEE markets and focus on strong fundamentals coupled with solid economic growth. Jeff Alson, Partner and Head of CEE Investment Team at Cushman & Wakefield talked to Property Forum about his expectations for the investment market.

The office markets of Central European capitals are growing dynamically: the number of new leases is on the rise, vacancy rates have hit record lows in several cities and demand for large office space is also growing. In light of all this it is no surprise that development activity is also heating up on the most popular markets of the region. We asked three major office developers to tell us which city in the region offers the most attractive development opportunities, how tenants’ requirements are changing and what makes Central European capitals different.

Investment volumes in Central and Eastern Europe (Poland, Slovakia, Hungary, Czech Republic, Russia and Turkey) reached €7 billion in H1 2017. This is 6% less than in the same period of the previous year.

Central and Eastern European markets are booming and most segments of the property business are growing rapidly, thus providing an opportunity for advisory firms to expand. Jonathan Hallett, Managing Partner for Central Europe talked to Property Forum about Cushman & Wakefield’s plans for the region.

SachsenFonds, a company that manages investments in real estate and renewable energy sources, is changing its name. The new business name EURAMCO stands for European Asset Management Company and reflects its growing presence on international markets. The company was started in 1999 as one of the subsidiaries of Landesbank Sachsen. Today, the EURAMCO Group administers close to €4 billion in approximately 60 private investment funds. In Europe, EURAMCO has three offices: the headquarters in Ascheim near Munich (investment management in Western Europe), in Prague (investment management in Central and South-Eastern Europe) and in Warsaw. In addition, the company also operates on the Australian market with a branch office in Sydney.

Immofinanz recorded a significant increase in net profit to €105.3 million in the first half of 2017 (H1 2016: €-243.3 million). Net profit from continuing operations, i.e. excluding Russia, totalled €113.1 million (H1 2016: €-123.9 million). Rental income remained stable at €114.9 million (H1 2016: €115.9 million) despite the continuing sale of non-strategic properties. After an adjustment for new acquisitions, completions and sales (like-for-like), rental income rose by a sound 4.6% to €92.4 million. The results of asset management increased by 10.0% to €79.1 million, and financial results turned sharply positive at €104.4 million (H1 2016: €-58.0 million). This improvement resulted, above all, from positive valuation effects related to the investments in CA Immo and BUWOG.