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The CEE Summit: ‘Safety in numbers’ in the Polish market

There is safety in numbers, as the presence of such a range of foreign capital in the Polish market is an incentive for others to invest, experts agreed at the Poland and CEE – the international investors’ view at the CEE Summit in Warsaw, which was organised by Poland Today and Real Asset Media.

‘Poland now has such a range of international investors from virtually every continent that there is safety in that,’ said Ingo Martin, Head of International Real Estate & Structured Finance, Deutsche Hypo.

Capital is coming from new as well as established sources. ‘We have just done a strategic deal with the largest developer in Australia,’ said Dorota Latkowska, Partner, REINO Capital Partners. ‘They looked at several countries in Western Europe first, but when they came here and saw the dynamism of the market they made the decision to invest very quickly.’

The number and range of foreign investors is in contrast with the lack of domestic capital in the market. ‘For us as value-add investors it’s all about liquidity,’ said Robert Martin, Founding Partner, Europa Capital. ‘In the last ten years the liquidity situation has improved significantly, but it is still an issue’.

Foreign investors are looking beyond Warsaw to secondary cities like Krakow, Poznan, Wroclaw, Lodz, Katowice, Gdansk and Gdynia. In time, Poland could become a polycentric country like Germany.

‘There is no question that it’s happening,’ said Piotr Mirowski, Senior Partner, Head of Investment Services Poland, Colliers International. ‘We see major developers going into regional cities. Liquidity is improving, but given the size of these markets it will continue to be an issue. However, growth will continue as part of market dynamics’.

The improvements in infrastructure across Poland are facilitating investment in secondary markets. ‘There have been great changes,’ said Robert Martin. ‘There are great transport links and great transport links that are opening the country up and making things easier for investors’.

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