Tag Archives: Colliers

CIJ Investment Roundtable – Hungary

Great discussion at the CIJ Investment Roundtable in Hungary today at Bank Center. It certainly wasn’t all doom and gloom, but the panelists agreed that Hungary’s knack for attracting scary headlines isn’t helping matters.

On the positive side, strong projects continue to perform, providing a certain level of comfort to developers and investors who know they’re investing into projects with solid fundamentals. And if a certain trio of major transactions were to go through, which would silence the pessemists, at least for a time.

And investors continue to land at Budapest’s new airport in order to scout out the opportunities. Unfortunately, they’ve been running into increased resistance from banks to agree to financing of new transactions, to the point that some investors won’t begin due diligence until some level of credit agreements have been put in place. And clearly, the country is still in a tight spot, with the consumer spend continuing to be squeezed by unemployment and the Swiss franc mortgage mess.

There was an overall consensus that it would be helpful if there were a more active approach towards outside investors, be it from the state, the city or from the private sector.

We’ll be featuring excerpts from what was an open and frank debate about the state of the property market in the November issue of CIJ.


MOMentum now 42% leased

MOMentum offices in Budapest has lined up a new 1,200 sqm tenant beginning in January 2012. The Korean Cultural Center will be moving into the building, which is a development of REM Ingatlan and is now 42 percent leased. REM Ingatlan gave the exclusive leasing rights for the building to Colliers International.

Budapest hotels booking better

Colliers International in Hungary reports that business trips have increased in the first half of 2011, with the number of guest night up by 3 percent compared to the same period in 2010. “Within this, hotels continued to perform above-average, with the number of guest nights rising by 7%. Four-star hotels performed particularly well, with growth exceeding 11%” – said Norbert Szircsák, researcher and valuation consultant at the real estate advisory firm.
The total nights spent by foreign visitors increased by 10 percent, a stat Colliers chalks up to the fact that Hungary held the rotating EU presidency role for that period. The average occupancy rate for hotels was 43%, with 5-star accommodations posting the best result (61%), followed by 4-star hotels (49%).

Total revenues of accommodation establishments increased by 6% at current prices, compared to the same period of 2010. Average room rates at three-to-five-star hotels in Budapest were between HUF 9,000 and HUF 31,000 in the January–June period.

KSP buys Stratos from Pramerica

Kulczyk Silverstein Properties (KSP) has purchased the Stratos Office Center  in central Warsaw from Pramerica Real Estate Investors. KSP plans further acquisitions in Poland and other countries of CEE region.

Stratos Office Center is a 10,600 sqm  Class A office building developed in 2000 by the Austrian developer  Karimpol.

Pramerica acquired the property in 2006. The building is fully let to tenants including BRE Leasing, the Belgium Embassy as well as international law firms Beiten Burkhardt and Bird & Bird.

The transaction was financed by Landesbank Berlin AG and Berlin Hyp and was brokered by Colliers International.  Hogan Lovells acted for KSP while Salans acted for the vendor. One unconfirmed market source not involved in the deal put the yield at around 6.6%.

New MD for Colliers in Prague

It wasn’t exactly a secret, but Colliers International has officially given word that the new managing director of its Prague office is Omar Sattar. It’s a return to agency work for Sattar, who was MD of DTZ’s Prague office before becoming country manager for Czech and Hungary for Avestus Real Estate. He’ll be joined by Chris Sheils who’s left Knight Frank to become lead investment services for Colliers in the Czech Republic. We’ll be watching for updates to LinkedIn…

An agent’s Christmas wish list

Colliers International’s director of retail solutions Ian Elliott has written an open letter to retail landlords and developers, with his own Christmas wish list. We bring you just the first three, which deal with fun, food and marketing:

Please can I have some different entertainment operators that actually deliver their promises of dreams and action and will be there in 3 years time. Can they provide different types of entertainment throughout the development instead of only in segregated zones so I can enjoy different things at different times with all my family and friends

Food courts
In a market where shops double as tourist attractions, hotels double as meeting points with lifestyle, please can we get away from a food court of kiosks and communal seating or a ‘food streets’ however they are dressed up and camouflaged in design terms. The food court in a shopping centre should reflect the trend of cafes, bars and restaurants becoming more multi-use, and seek to offer culture, entertainment and shopping as well as something to eat and drink. Continue reading

Rebranding action

There’s been re-branding action announced this week. First up, Colliers International is uniting all of its activities under the Colliers International brand, including some service lines that traded under other names (like FirstService Williams, FirstService PGP Valuation and PKF Capital – Hotel Brokerage Services).

“Today is not simply about a new look and feel,” said Hadley Dean, Managing Partner, CEE.  “It is more about the completion of our integration into a truly global platform with a breadth and depth of services that will enable us to meet every one of our clients’ commercial real estate needs, whether it is in Europe or on the other side of the world.”

The other bit of re-branding is less global in nature. CEC Capital has renamed itself Mint Investments. The company is perhaps more widely recognized for its subsidiaries CSIA and Develon, and that, apparently, is precisely the point of the new marketing plan.

The timing, says partner Sebastien Dejanovski, is linked with what he calls a turn in the market and the arrival of new investors interested in making property-related investments. Mint Investments will continue to hold the company together with Avestus Capital Partners, but will be open to working with this potential new source of investment.