Perhaps, Hungary and Slovenia are the following markets in eastern Europe, where the South African real estate funds will settle.
In the meantime, they are very active in Poland, the Czech Republic, Slovakia, Austria, Serbia, Croatia and Romania. Redefine Properties and Rockcastle Global Real Estate have solid assets in Poland. Growthpoint Properties and other funds from South Africa are also looking for opportunities to invest in this country.
Last week, representatives of Accelerate Property Fund said that they are going to invest in Slovakia and Austria. If these investments will be successful, the fund will continue its penetration to the continent. It was followed by New Europe Property Investments (Nepi): a week ago, the fund announced that he had acquired a great property in the Czech Republic.
Currently, funds are actively cooperating with analysts of Eastern European real estate market, with consultants and brokers from companies such as Jones Lang LaSalle and Savills.
Chief Investment Manager in Grindrod Asset Management Ian Anderson believes that most of the funds didn't appear in Eastern Europe accidently. "They are trying to establish long-term partnerships and business relations in the construction sector or in other most successful areas of a particular region," - says Anderson. In his opinion, such funds as the Tower Property will receive the greatest profit, because rgey invested in the less developed markets, such as Croatia.
"At the time, when some companies (Redefine and Rockcastle, invest in Poland) prefer to invest in markets where pricing is more intense, there are many buyers and sellers, other investors (eg, Nepi in the late 2000s and Tower Property Fund now) who start with small markets. In such countries, there are less large investors and foreign investors in total are unusual".
Eastern Europe relies heavily on aid from the European Union so the pioneers of these markets will have, in the opinion of Ian Anderson, to get a very good income.
According to the materials of bdlive.co.za
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