Information on investment products can now be found on the website wood.com/products/
The investment market in Slovakia reached a total volume of €537 million in 2024, of which €346 million was traded in the last quarter of the year, representing a 177% year-on-year increase in investment activity in the quarter. In the Czech Republic, assets in excess of €700 million were traded in the last quarter, making it the strongest quarter since the beginning of 2022. Total investment assets in 2024 reached €1.7 billion, representing a 45% year-on-year increase. Of the total investment activity undertaken in the past year, approximately 90% was local capital. In Poland, the total transaction volume for 2024 exceeded EUR 5 billion, representing a year-on-year increase of 140%. The last quarter of 2024 was the strongest in terms of investment activity in Poland since the pandemic, with a total of approximately EUR 2.3 billion traded, representing a quarter-on-quarter increase of 140%.
"We expect the commercial real estate market to stabilise and rents to rise, which should support the overall performance of Czech real estate funds. Real estate funds are thus becoming an attractive investment opportunity for those who expect property prices to rise. They offer interesting returns and represent a stabilising element of an investor's portfolio," says Marek Herold, Portfolio Manager of the WOOD & Company Real Estate Fund
WOOD & Company‘s commercial real estate portfolio currently includes 17 projects with a total leasable area of over 450,000 m². This requires a lot of work and dedication in managing and occupying the buildings, taking care of tenants and business partners so that the expectations of all stakeholders are met. Allow us to share a few key moments and achievements of the past year.
SUCCESSFUL LEASING OF OFFICE SPACE
We are pleased that we have been able to successfully occupy our buildings despite the challenging market conditions over the past few years. Currently, the average occupancy of our office and retail properties in all three regions where we operate is over 90%.
Last year, we concluded interesting lease agreements in all three key regions - Prague, Bratislava and Warsaw. OTE, which provides comprehensive services to market participants in the electricity, gas and environmental products markets, occupied approximately 1,700 m² of space in The Greenline building in Prague. Other new tenants include OKIN, a leading provider of comprehensive building management, and LM Clinic, an aesthetic medicine clinic. IT company Soitron has moved into our newest building in Prague, Green Point in Smíchov, while another newcomer to the building is real estate agency Engel α Völkers, which is moving into approximately 1,500 m². Harfa Office Park in Vysočany welcomed new tenants in the form of NoArk Electric and Evolution, which together occupied approximately 1,400 m² of space. With the arrival of these tenants, the building is fully occupied.
The Bratislava-based team also experienced an active leasing season. Among others, the Form Factory fitness centre opened its doors in the BBC5 building, while the tenants of the Lakeside 2 building appreciate the new tenant in the form of the Malina grocery store.
Two Warsaw office buildings have also attracted new tenants. In the Astrum building, we welcomed the rail carrier Arriva and the electronic cigarette retailer VB Distribution. In the Concept Tower, medical supplies company Sarstedt added to the tenant mix.
ACQUISITIONS, EXITS, EXPANSIONS AND DEVELOPMENT
In February, the WOOD & Company Office sub-fund expanded its portfolio with the purchase of the Concept Tower in the centre of Warsaw. The 15-storey, LEED Gold-certified A+ class building has a total of 9,000 sqm of fully leased office space. The LEED Gold-certified building offers a flexible space layout, ample natural light, terraces and underground parking, creating an optimal working environment for demanding clients. This acquisition is the company's second office building on the Polish market and the sub-fund's twelfth asset.
Subsequently, in October, our group successfully sold the asset of the Office sub-fund, the Westend Tower in Bratislava, to Amigal Group for a price above market valuation. This was the first building to become part of the Office sub-fund in 2017 and the first sale. "Our long-term strategy of building a diversified portfolio is proving successful. We have been able to buy and value buildings in different regions, while also successfully realizing returns through strategic exits," commented Martin Šmigura, local partner at WOOD & Company, on the sale.
The first half of the year saw the completion of the more than three-year acquisition process of the Aupark shopping centre, which is now fully owned by WOOD & Company and Tatra Asset Management. At the end of October, we inaugurated a new section expanding the centre by 9,999 m² of retail space. Here, customers can enjoy a unique green facade with more than 40,000 plants as well as the latest concepts and flagship stores of the Zara and Reserved brands. With a current occupancy rate of around 98% and 231 units for rent, Aupark has consolidated its position as a premium shopping centre.
The WOOD & Co. Logistics sub-fund, which focuses on the construction of logistics projects, also invested in new projects last year. In addition to the 7R Park Tczew III project near Gdańsk, which was the subfund's first acquisition, the Panattoni Park Pilsen West III project, which is being built near the D5 motorway just a few kilometres west of Pilsen, was added to the portfolio in October. The total value of the investment in the development will exceed CZK 1 billion. We have also provided a loan for the construction of a modern logistics hall on the D1 motorway from Prague to Brno, and we have started 2025 by extending this successful cooperation, namely by acquiring a majority stake in the project.
In September, we expanded our investment opportunities by another in-demand and popular residential segment among investors. "Although we have been resisting the residential segment for many years, we have finally complied with the wishes of our investors. The still high demand for new housing, despite relatively high interest rates, together with the growth in property prices, opens up room for decent returns from a share in the development and subsequent sale," comments Jiří Hrbáček.
Our group has entered into residential development projects before, namely on the Slovak market in Bratislava and Trencin. New projects are waiting to be implemented in cooperation with renowned development companies Immocap, Cresco Real Estate or Occam Real Estate. A development project in Prague, which should become the first acquisition of the new Residential sub-fund, is currently under negotiation.
INTEREST IN FLEXIBLE OFFICES IS GROWING
In the last two years, we have started to implement the Flexi Space project on our buildings, which is increasingly in demand. These are small offices designed to meet the needs of individuals and smaller companies looking for compact space with flexible contract terms, but with full service and amenities comparable to large office buildings. Tenants have the option to share fully equipped common areas such as meeting rooms or kitchenettes and high-speed internet. Flexi Space creates an environment in which the small business community can support and motivate each other, for example through networking in the common areas. Therefore, this year we are planning to develop flexi spaces in both Bratislava and Prague office buildings.
AWARD FOR OUR REAL ESTATE FUNDS
In spring, three of our real estate sub-funds - WOOD & Co. Office sub-fund, WOOD & Co. Retail sub-fund and AUP Bratislava sub-fund - were awarded the Light Green designation under the European SFDR regulation. This designation confirms our commitment to sustainability and a responsible approach to the environment.
