Commercial property investments in Romania reached 530 million Euro in the first six months

In H1 2017, the total volume invested in commercial property in Romania reached 530 million Euro, compared to 370 million Euro during H1 2016, a 43 per cent increase, according to a report issued by C&W Echinox.

2017-08-22 10:17:42

Bucharest attracted 24 per cent from the total investment volume, office buildings being the most transacted assets. Outside Bucharest, investors were attracted mostly by retail and industrial properties.

The most active segment was the retail sector. The estimated value of transactions of retail properties was around 350 million Euro, representing 66 per cent of the total investment value. The office sector saw transactions worth 123 million Euro, representing 23 per cent of the total volume, with the remaining 11 per cent covered by logistics.

The largest transaction in terms of value was concluded by South African group Atterbury, which acquired a 50 per cent stake in Iulius Mall shopping centers located in Iasi, Suceava, Cluj Napoca and Timisoara and 50% from the office buildings Iulius Business Center Cluj, United Business Center Cluj and United BC II in Timisoara.

Tim Wilkinson, Partner, Capital Markets, C&W Echinox, said: "There is a clear positive shift in investor interest in real estate, especially since the beginning of 2017. This will bring additional liquidity to the market but will not have an impact on short-term yields, as investors are still very careful in the selection of target assets."

Globalworth and the Belgian group Mitiska-REIM were among the most active investors, with two transactions each. Globalworth acquired Dacia Logistic Center and Green Court C for 80 million Euro, while Mitiska consolidated their local position through the acquisition of the remaining 50 per cent stake of Intercora's portfolio and the acquisition of the retail properties owned by Alpha Property Development.