Firstly, a good relationship is needed from the start, says Adrian Karczewicz, Skanska’s transaction director for CEE. “At the beginning of the year I usually reach out and talk to potential buyers. It helps me to find out what their expectations, needs and investment strategies are for the new year. At the same time I have the opportunity to present profitable CEE markets in which we operate, share our plans for divestments and offer further cooperation with Skanska,” he explains, according to the press release.
Second most important factor is to ensure a smooth and quick transaction, ideally closing the sale within six months of the project’s launch, the press release noted. An in-depth evaluation of the building, referred to as pre-due diligence guarantees a third-party opinion regarding the property’s technical documentation and legal status.
Thirdly, Skanska chooses markets with the highest potential and liquidity to help provide buyers with a profitable product. CEE assets tend to provide higher returns than their Western European counterparts. Budapest currently has 7% of prime office yields within the region.
Fourth on the list of priorities is the quality of the property, including technical parameters, its design and the quality construction, underpinned by LEED certifications. “Furthermore, factors influencing the exploitation of office space and employee comfort are also important,” adds Karczewicz.
Finally, a high lease level is important for investors who do not wish to look for tenants after they’ve acquired a property, therefore they look for buildings that are almost fully let. In the event of low occupancy rates, Skanska has several workarounds in place.
Skanska Property Hungary is expected to deliver its A-class, LEED Gold pre-certified office building Nordic Light in September of this year, which includes 26,200 sqm of GLA. “We are optimistic about the leasing progress as our current deals pipeline should allow us to reach 100% occupancy by the end of the year. As for divestment process, investors are already showing high interest in Nordic Light and taking into consideration general market improvement,” said Marcin Łapiński, managing director at Skanska Property Hungary and Romania.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
