Positive economic outlook drives investors’ focus to Romania and SEE region in 2018

Positive economic outlook drives investors’ focus to Romania and SEE region in 2018 920 420 Bucharest Real Estate Club

Positive economic outlook drives investors’ focus

to Romania and SEE region in 2018

With another year of economic healthy grow predicted for Europe, Romania is the star of the SEE region, as forecasts of the European Commission are for a 4.4% increase in 2018 of the local economy.

“The dominant theme for real estate capital markets in 2018 is the tension between the pressure to invest and the fear that real estate is late in the cycle, highly priced and thus carries latent risk”, as states the Emerging Trends in Real Estate®: Europe 2018 survey by PwC & Urban Land Institute.

According to JLL estimations, the total volume of real estate investment deals might reach the sum of one billion EUR in 2017. The estimations are based on the value of the deals closed in the first semester, namely 485 million EUR.

The year was characterized by the entry of two new players on the market, both of SouthAfrican origin.

  • Atterbury Europe bought 50% of the group founded by local businessman, Iulian Dascalu, comprising of 4 shopping malls and 3 office buildings.
  • Growthpoint acquired 26.9% from Globalworth, the real estate investment fund established by Ioannis Papalekas, at a value estimated at 186.4 million EUR.

Both vendors use the capital to further expand their presence on the market. Towards the end of the year, Globalworth was again in the news, as EBRD entered the shareholding with a 4% stake.

While the appetite for development of Globalworth increased significantly in 2017, the other major player on the market, NEPI wasn’t involved in any acquisition. The company finalized the merger with Rockcastle and strategically wants to focus on the retail segment, planning to sell the office portfolio in 2018.

In a wish to cash in from the effervescence on the real estate market, corporations have begun to sell their real estate assets to focus on the core-business:

  • Telekom has sold to Forte Partners a land downtown Bucharest and plans to sell Tandem building located in the same area.
  • OMV Petrom also announced plans to sell a building located in an area targeted by real estate investors – Aviatiei, near Barbu Vacarescu – Floreasca hub.

TOP INVESTMENT DEALS IN 2017

The top was compiled by BUCHAREST REAL ESTATE CLUB, based on the information issued by major consultancy companies.