Real estate investments climbed above €750 million in 2021, more than was traded in 2019. The majority of the deals (€552 worth) was completed in the first six months of the year. That’s more than the volume achieved over the entirety of 2020. Cushman & Wakefield Slovakia writes that a good deal of that was thanks to the acquisition of a 60% stake in Aupark Bratislava by WOOD & Company and its JV partner Tatra Asset Management. In fact, retail made up the largest portion of Slovak investment last year (€330 million). The others included the sale of the Tesco Senec hypermarket, the Danubia Petržalka shopping center and the OBI big box portfolio transaction. Cushman & Wakefield pegs prime yields for retail at a theoretical 6%. At the same time, it warns little is expected to go on sale until revenues stabilize. By contrast logistics yields have fallen to 5.25%, with numerous international investors providing “exceptional liquidity.”
“The growth of the capital strength of domestic and regional investors, especially real estate funds managed by local management companies, gives the market the necessary liquidity. At the same time, it is clear that the uncertainty caused by COVID in 2020 was fully accepted as part of the risk, without any impact on yields,” says Marián Fridrich, Head of Cushman & Wakefield Slovakia.
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