For the fourth consecutive year, the office space sector has attracted the largest number of transactions, with 55% of all transactions signed in 2018. The retail sector has accounted for 33% of transactions, the industrial segment, 7%, and the hotels and other transactions accounted for the remaining 5%.
The Bucharest real estate market had the most intense activity in 2018, with 77% of the total investments registered at the national urban level. Domestic investors were the most active, accounting for almost 25% of total transactions, followed by South African funds, which accounted for 18% and Portuguese investors, 13%.
According to CBRE, the largest transactions in 2018 took place in the second half of the year, on the segments of office space and retail space. The largest transaction was the sale of The Bridge (I and II) office project, by the developer Forte Partners to Dedeman, following an agreement worth 150 million euros.
The second transaction, in value terms, aimed to change the shareholding structure of the ParkLake Shopping Center and amounted to 120 million euros. Thus, Sonae Sierra became the sole shareholder of the shopping center, by acquiring the 50% stake in Caelum Development.
Top of the most valuable transactions in 2018 also includes five other agreements:
• Sales of the Oregon Park (I and II) office building complex, developed by Portland Trust, to Lion's Head Investment, for 110 million euros;
• Sales of Militari Shopping Center, the shopping center in the West of Bucharest, to the South African investment fund, Mas Real Estate, with 95 million euros;
• Selling The Landmark office project to Revetas Capital and Cerberus Capital Management for € 65 million;
• Sale of the first building in Campus 6, by the Swedish developer Skanska, to the Austrian company CA Immo with 53 million euros;
• Selling the Crystal Tower office building to the Czech investment company, PPF Real Estate, for 43 million euros.
In 2018, the total transaction volume remained close to the same level in 2017 and reached 940 million, and the average transaction value fell 5% over the previous year to
29 million euros. The head offices in the capital raised the highest interest, with 97% of the total transactions on this segment
Prime yield (performance of Class A projects in the most rated areas) is declining for all sectors analyzed: industrial, office and retail. The evolution of the local yield on the local market is in line with the trend in Central and Eastern Europe, which is a sign that the market is active with a good level of investments and transactions. The gap between Romania and other countries in the region, such as Hungary and Slovakia, has diminished, but there is room for further decreases in this yield in all sectors of the domestic real estate market. Thus, the lowest earning performance was recorded by the commercial sector, 6.5%, followed by the office space segment by 7% and by the industrial premises by 7.75%. (source: CBRE)
