Monthly Archives: March 2011

ING fund takes over Wars-Sawa-Junior

ING Property Fund Central and Eastern Europe (ING PFCEE) will become the sole owner of Wars-Sawa-Junior, a prime high street retail and office property located in Warsaw, Poland. With a €76m investment ING PFCEE, has acquired the remaining 50 percent stake in Wars-Sawa-Junior from its joint venture partner Centrum Development and Investment, Eastbridge Group’s real estate arm.

The property comprises about 29,000 sqm of retail space and 7,000 sqm of office space. Tenants include H&M, C&A, TK Maxx, Reserved, Marks & Spencer, Zara, Empik, Carrefour, Sephora, Esprit, Camaieu, Cropp Town and House.

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Time to buy?

Fortune magazine’s Shawn Tully is calling the American residential market bottom, saying Now! is the time to buy. Word of warning: there’s a school of thought that says when Fortune says it’s time to jump on the bandwagon, you may already be too late to get off.  (Update: Knight Frank claims the US is only the 7th worst residential market in the world. It also found that the Czech market is the world’s 11th worst resi market! But back to the Fortune article….)

If all the noise you’re hearing about housing has you totally confused, join the crowd. One day you’ll read that owning a home has never been more affordable. Continue reading

Why is the Euro like a vinegarette?

For your weekend reading pleasure, a fascinating comparison by Macro Man of the Euro to an oil and vinegar salad dressing. He’s not as hot and bothered by the fuss over Portugal (it was always going to get bailed out, he says, and everybody knew it), but he’s also surprisingly calm, so far, about where the buck really stops: Spain.

The argument over how to trade the euro is composed of 2 parts: the core (good euro) and the periphery (bad euro). We could actually consider the Euro as a vinaigrette, composed of 2 immiscible liquids, the core as the Vinegar at the bottom and the periphery the Olive Oil on the top (somewhat appropriately). When shaken together they emulsify enough to appear as one homogeneous gloop. However, if left alone they will separate out into their constituent parts, but remain in the same bottle (the Euro). Whilst the last year has seen the Eurocrats and policy makers trying to shake the bottle enough to keep the two parts smoothly mixed, the market is sure that there is too much oil in the mix and is focused on the interface between the core and the periphery to detect if policy is actually working. That interface is still seen as being Spain.

Read the whole thing at the source

Orco turns a profit in 2010

Orco’s handed in a €233.4m profit for 2010, which is a whole lot better than its 2009 loss of €250m. It says that selling off commercial development projects brought in €121m and an additional by selling real estate assets (rental buildings and land plots) produced €185m. Rental revenues declined 3% over the year, but showed an upward trend in the final quarter of the year. Those with a nose for detail may be interested to know that the Bubny site was transferred from the land bank into inventory back in July, after the local municipality announced its support for the project.

Full statement on the unaudited results available here.   Or for some highlights, continue reading below…

Continue reading

Destination: DBH

Regular readers will be happy to note that we’ll be back on air again, at last. Reorganization work going on, and also preparation for a big night of DBH’s. The property crowd will be getting their Drinks Before Home both in Warsaw and Bucharest tonight. Check out the CIJ Facebook pages for pictures in a day or two to see what you missed, if you can’t make it. And if you didn’t get an invite, just write us to see how you can get on the next one!

Deka buys North Gate in Warsaw for €103m

Germany’s Deka Immobilien has acquired the fully-let North Gate office building in Warsaw, Poland for €103m. The building was sold by two companies in the Austrian Volksbank Group, which developed North Gate  through its project development company Premiumred.

With construction completed in 2008, the 24-storey property in central Warsaw offers 30,000 sqm in total lettable floor space. Its primary anchor tenant is pharmaceutical company Sanofi Aventis.

The building will be included in the investment fund’s WestInvest InterSelect open-ended mutual property fund portfolio.

Dom Development’s sales up, profit down

Warsaw-listed residential developer Dom development posted its 2010 results today. The company saw its net profit decrease by 49.5 percent to PLN 40.5m (€10.15m), a result of the long crisis, particularly in 2009 and 2010, when the company barely built a thing and the number of flats it delivered to clients was minimal.

Dom Development’s turnover in 2010 was PLN 513.7 (€128.69m), a decrease of 27.1 percent against 2009. Last year, however, shows the company’s revenue will be increasing in the following quarters and years. Dom Development sold 1386 flats last year, an increase of 75 percent over 2009. The company refrained from providing sales and revenue forecast for 2011. Continue reading