Savills IM deals reach EUR 3.5 bln in 2019

The value of assets managed by Savills IM reached a record level of EUR 20.75 bln last year, while on the Polish market the company purchased properties with a total value of almost EUR 300 mln. On a global scale, the value of its sales deals amounted to EUR 1.3 bln and the total value of acquired assets reached EUR 2.2 bln. Last year, it closed 81 deals in 16 countries.

The company was the most active in the logistics sector, in which it acquired assets worth a total of more than EUR 1.3 bln, the most important of which include a portfolio of forward transactions in Germany and the acquisition of five logistics projects in Poland.

One of the key events for Savills IM in 2019 was creationist establishment of the European Logistics Fund 3 (ELF 3), which is to continue its predecessor’s strategy of investing in high-quality distribution centres, warehouses and cross-dock facilities. The fund has already raised EUR 160 mln.

In the office sector, Savills IM’s most significant transactions last year were carried out in Dublin, Munich and Nuremberg.

“In 2019 we focused on the warehouse sector, adding seven such buildings to our portfolio and securing three more with preliminary contracts. We see the warehouse sector as one of our most promising areas,” reveals Piotr Trzciński, the Poland head of transactions at Savills IM. “Since 2017, when we started operating in Poland, we have built, in cooperation with our partner Panattoni, among others, a warehouse portfolio worth almost EUR 500 mln. This includes Amazon’s largest distribution centre in Poland, in Gliwice (200,000 sqm), and H&M’s logistics centre near Bolesławiec (75,000 sqm). I think that we will be able to boast further acquisitions this year,” insists Piotr Trzciński.

In its three years on the Polish market, Savills IM has built up a portfolio of office, retail and warehouse properties with a total value of more than EUR 1.2 bln.

“The global real estate market faces several challenges. According to many experts, we are approaching the peak of the business cycle, and the yields are low, especially compared to previous years. Vacancy is falling and the supply of new space is relatively low on most markets. If interest rates stay low for longer, properties will remain attractive to investors. It cannot be said that local markets are out of balance, but the differences between the individual segments of the real estate market will evolve along with structural changes, such as the growing importance of e-commerce, urbanisation and demographic changes,” predicts Kiran Patel, the chief investment officer at Savills IM.