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Real estate: Five investors bought properties of over 500 million euros in Romania
Five investors, CTP, GLL, P3, Nepi and Globalworth, bought last years properties of over 500 million euros of the total of 650 millions recorded in the Romanian market, according to real estate consultant JLL.
“The companies CTP, GLL and P3 had the highest volume of investments last year, compared to 2013 and 2014 when Nepi and Globalworth were the most active. The diversification of local investors will continue this year and we will see new buyers for all market segments. JLL is negotiating several transactions which could be concluded in the following months and which have big chances to attract new investors,” said Sliviana Badea, head of Capital Markets, Associate Director JLL Romania.
In 2015, the most active buyer was CTP, set up in the Netherlands by the purchase of 6 industrial properties in Romania, totalling over 130 million euros.
In the office market, after the absence of German institutional funds for 6 years, GLL bought Floreasca Park and Victoria Center with 130 million euros.
Property purchases in Bucharest represented last year 80% of the investment volume in Romania.
Transactions were dominated by the purchase of industrial areas (41%), followed by offices (38%).
The biggest transactions made in 2015 in the industrial market were the purchase of Europolis industrial park from CA Immo by P3 and that of Bucharest West by CTP from Portland Trust.
In the office market, the most important transactions were the purchase of Floreasca Park from Portland Trust by the German investment fund GLL and the purchase by Globalworth of Green Court Building B by Skanska.
The only big transaction in the retail market was made by Nepi by the purchase of Iris Titan from the Scottish company Aberdeen.
JLL was involved in 57% of the total volume of real estate transactions with commercial properties registered in Romania in 2015 and over 70% of the transaction volume in which consultants were involved.
Investment profits were 7.5% in the office and retail market and 9% for the industrial segment.
“Profits compressed by 25-75 basic points (0.25-0,75%) in 2015, but for the first part of 2016 we do not expect the decrease to continue at the same rate, although financial conditions improved in Romania compared to past years, interest rates are 2% over those in the Czech Republic and Poland. For that reason investors interested in the local market are mostly those who have their own money or are able to get finance at regional level,” said Andrei Vacaru, Capital Markets, JLL Romania.