Sales of high street bank branches boost retail property sales

“Corporate real estate disposals accounted for 17 per cent of the European property investment market in 2009, with sale and leaseback transactions proving to be some of the cross-border real estate transaction highlights of the year. The bond-like characteristics of sale and leaseback transactions are attractive in the current market because they match the preferences of a range of investor types for good covenants, long leases and a fixed or indexed rent. While the market is still fragile and economic recovery is tentative across most of Europe, the income and covenant characteristics of these products will continue to remain appealing. The contribution of corporate sales to the European investment market reflect the increased acceptability of raising capital by disposing of property assets, coupled with reduced flow of product from other types of vendor,” concluded Holberton.

„Budapest, similarly to other Central and Eastern European markets, follows the London trends with a slight delay.” – commented Gábor Borbély, Senior Analyst at CB Richard Ellis Hungary. „Investors in Western Europe have already priced in the increasing values of properties, therefore their appetite has returned. In the CEE, however, there is some uncertainty about when the yield might start decreasing. Sale and leaseback transactions might be again dominant in the region once buyers’ confidence is back, as retail chains -similar to those in Western Europe- are also present here, and their real estate portfolios could be attractive conservative investment alternatives.”