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Skanska wins over 10% share of CEE office transaction market

Press release 6/2/2015 2:00 PM CET

Commercial investment market in Central and Eastern Europe (CEE) is dynamically developing, especially in the office sector. According to Colliers International’s data, the total amount of office transactions in CEE, excluding Russia, hit 3.1 billion EUR[1]. Skanska, the biggest office developer in the region, accounted for over 10% of this volume. The company is both proud of its position as a market leader as well as a trailblazer in introducing new standards to commercial buildings.

[1] Research & Forecast Report, Eastern Europe | Investment, Q1 2015, Opportunity Knocks for CEE? Colliers international, 2015

Axis - Skanska Property Poland

Colliers International states that the office sector in CEE continues to be the asset of choice for the majority of investors, accounting for 38% of all transactions in 2014. “A combination of robust economic growth, coupled with strong growth prospects from companies choosing CEE as a global growth platform for offshoring and outsourcing will continue to drive office demand. This, combined with strong relative pricing levels compared to other European locations, should continue to drive increased appetite for high-quality, core office assets in 2015 and beyond,” says Damian Harrington, Regional Director of Research for Colliers International, Eastern Europe.

The market leader in CEE is Skanska Commercial Development Europe (CDE), the group’s unit responsible for developing modern, green office complexes. Last year the company provided investors with nine buildings. As a result, Skanska's office building sales in the CEE accounted for over 50% of such transactions realized by the company on the global market. The schemes sold included one in Bucharest, one in Budapest, two in Prague and five in Poland in cities such as Krakow, Wroclaw and Lodz. For Skanska the CEE is the fastest developing investment transaction market in the world.

“In 2014, investors purchased from us buildings worth 330 million EUR in total. This is a very good result, accounting for over a 10% share in the overall office transaction market in the CEE. In 2015, the company’s sale portfolio will gain seven new schemes – in Prague, Bucharest, Krakow, Poznan and Katowice. What is more, we have also prepared a portfolio offer regarding our four Polish investments which provide over 63,000 sqm of office space,” comments Adrian Karczewicz, Transaction Director at Skanska CDE.

Interest from foreign investors in Central and Eastern Europe is still growing. According to JLL, in 2014 the commercial transaction volume in the region reached ca 7.8 billion EUR, which accounted for a 25% year-on-year growth[1].

Skanska has witnessed an increase in investor enquiries regarding office buildings developed by the company in the capitals of the Czech Republic, Romania, Hungary as well as Poland's biggest cities. Major and experienced developers have a huge advantage on the market and Skanska CDE holds a pre-eminent position among them. They are trying to attract the biggest and the most important investors. Even though some financial organizations may not have great operational experience in a particular country, they may be able to trust a dependable partner. While making a decision, investors focus on factors such as: a developer’s credibility, a scheme’s location on a prospective market in terms of a tenant's future business development, the building’s quality underpinned by certificates as well as compliance with the newest trends in construction. Skanska emphasises its great focus on such aspects.

“As standard, we perform a pre-due diligence process where we conduct a thorough analysis of the whole scheme, the completedness of documentation and a building’s strong and weak points. The customer receives from us a perfectly prepared product - in every respect,” explains Adrian Karczewicz.

In the upcoming years, Skanska CDE is planning to confirm its market position by selling seven to eight new buildings per year.

[1] CEE Investment Market Pulse 2014, JLL

Email: Jędrzej Kruszyński, Koordynator ds. Komunikacji / Communication Coordinator
Last updated: 8/22/2017