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News Release

Bratislava

Slovak capital market recorded the highest volume of investments into commercial real estate since 2005


​After rather careful beginning of the year, when only one investment transaction into commercial real estate was completed (app. 64 mil. Eur), during the second half of the year we saw significant recovery in investment activity which brought record volume of real estate investments exceeding 610 mil. Eur, the highest level recorded since 2005. 

Two big transactions in Bratislava and Košice

The second half of 2014 recorded seven assets changing hands, however  two transactions alone accounted for almost 87% of the total investment volume.  The largest deal in 2014 was the sale of Eurovea by Irish developer Ballymore Group to a private investor. The transaction included the acquisition of a large retail gallery, office blocks and a Sheraton hotel.

The second largest transaction was the sale of Aupark shopping centre in Kosice, together with the adjacent office building, Aupark Tower, in Slovakia's second largest city.  New Europe Property Investment (NEPI) employed their South African capital in acquiring  the scheme of €165 million from HB Reavis  The deal also included the sale of a development  plot in Kosice city centre.

In addition, Prologis acquired a smaller industrial scheme from Heitman, as part of a portfolio transaction, supporting its presence in Senec and Tatra Asset Management purchased Tesco in Skalica from CSOB Property Fund.

"In general, both smaller domestic investors and international players have increased their appetite for higher yielding value-added secondary products, even in smaller regional cities. Secondary locations have started to attract international capital too,"  says Miroslav Barnáš, Managing Director and Head of Capital Markets in JLL Slovakia. "The gap in pricing expectations between vendors and bidders has narrowed, reflecting the willingness of both parties to align with market conditions. Despite the large share of retail and mixed assets in the 2014 investment volumes, industrial assets are still attracting the highest interest from the market when it comes to the number of bidders," added Barnáš.

Yield level

In alignment with the market situation in other parts of CEE, and as a result of improving market conditions, yields are expected to compress in Slovakia over the upcoming quarters. Our view on prime yields has changed since H1 with Offices now standing at 7.00%, Shopping Centres at 6.75% and Industrial and Logistics at 8.25%.

Slovakia in CEE region

In CEE, 2014 investment volumes reached a level of approximately €7.9 billion. This represents a circa 27% y-o-y increase in volumes compared to those in 2013 (ca. €6.2 billion). Poland remained the leading regional market with a share of circa 41% in CEE followed by the Czech Republic (25%), Romania (16%), Slovakia (8%), Hungary (7%) and the SEE markets (3%).