January 2021

Our Head of Real Estate Andrzej Tokaj comments in Puls Biznesu

Our Head of Real Estate Andrzej Tokaj  makes some insightful comments in Puls Biznesu on the future of the real estate portfolio investment market.

Competition and Talent

There are two trends currently competing on the market: on the one hand, investors are eager to invest in real properties, the money is burning a hole in their pocket; on the other, there is no appetite for assets with uncertain operating conditions.

In such circumstances, many funds are willing to accept a strategy targeted at acquiring smaller and cheaper office buildings that have long-term leases with solid tenants; well-located and attractive retail parks; or acquiring warehouses that have recently been in high demand. The prices of these properties range from €10m to €30m.

There are several dozen investors competing for properties of this class in Poland. Some of them have decided to cooperate with developers as early as at the construction stage, thereby taking on a greater proportion of risk than they would if they bought a rented and income-generating building so that they can have speedier access to an investment product. Thankfully, Poland is a large enough market for all of them to find an appropriate property for themselves. The key is having a talented enough fund manager to find them.


Senior Partner, Penteris