Published: July 21, 2011
Russia and Poland drive CEE growth this year.
Direct investment in Central and Eastern Europe’s retail real estate market is set to increase, according to commercial property consultant Jones Lang LaSalle (JLL).
Jeremy Eddy, JLL’s head of EMEA retail capital markets, said current investor demand remains focused on France and Germany but he expects emerging Europe to see increased investment volumes by the end of the year.
“Investors, driven by higher returns, are focusing on the growth markets of Russia and Turkey, which provide prospects for rental and turnover growth as well as potential for yield compression,” he added.
Indeed, during the second quarter of the year €432mn was spent on deals in Russia and €332mn in Poland.
These figures were boosted by MTZ Rubin’s €278mn acquisition of Gorbushkin Dvor and Filion Shopping Centre in Moscow and Carpathian’s €171mn sale of Promenada Shopping Centre, Warsaw.