Retail portfolios dominate the start of the year - Various large-scale packages still in the market

International real estate advisors Savills latest commercial portfolio research finds that total transaction volumes in Q1 2015 were over €2.8 billion, which marks a 40% increase on the five year average. The firm notes that volumes were down year-on-year by 28% but expects volumes to increase given the large number of portfolios currently being marketing.

Savills reports that market activity in the first three months was dominated by retail portfolios, accounting for 62% of total transaction volumes. Ten of the total number of 33 transactions were in the retail sector, with the largest deal, the take-over of Corio by Klepierre, comprising five German shopping centres. The office sector accounted for 11% of portfolio deals, however, the firm predicts this share could increase as the majority of portfolios currently in the market comprise office assets.

Karsten Nemecek, managing director of corporate finance and  valuation at Savills Germany comments: “Although the supply of commercial real estate portfolios increased there continues to be more money in the market than can be invested. Whilst single assets do still perform better, we will continue to see portfolios for assets such as value-add and secondary products.” 


Savills found that real estate companies and REITS represented the largest group of buyers, thanks in part to the Corio take-over. This group accounted for €1.6 billion of real estate investment, followed by private equity funds who invested circa €400,000 and special funds investing circa €200,000.

Marcus Lemli, CEO of Savills Germany, adds: “The take over of Corio significantly boosted the investment by real estate companies/REITs, but perhaps more interestingly foreign buyers accounted for 80% of transaction volumes. French investors lead with 51% of total volume, followed by the UK at 17% and US investors at 14%. Given the significantly dropped external value of the Euro and the improving economic dynamic we we expect many investors who previously focused on other regions of the world in the past to now increasingly look for investment opportunities in Germany.”