How Are You Slovakia

8/10/2019 How Are You Slovakia

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H O W A R E Y O US L O V A K I A ?R E A L E S T A T E T I M E L I N E

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1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1ST INTERNETCONNECTIONMOBILEPHONE

OPERATOR

1996

Startof productionSonySlovakia inTrnava

2001Completion of AIGLincoln in Lozorno

rstA-classindustrialpark(Automotivesuplierpark)

1997Firstmodernbusiness centerinSlovakia BBC1(7,408 m 2)Firstlandmarkbuilding in BratislavaVUB Tower

2004Entryof Parkridge

(Senec) KiaMotors Slovakia

2006Opening ofproduction facility

PSA PeugeotCitronSlovakia inTrnavaEntryof Pinnacle(P3)

2008Entryof

Goodman

2011Prologis developsthelargestindustrialfacilityin Slovakia todate:PrologisParkGalanta-G(94,000 m 2)

2014Totalsupplyof modern industrialspacein Slovakia marketexceeds

2002Samsung ElectronicsSlovakia - startofproduction of CDT(CathodeDisplayTube)monitors.

286 THOUSANDAIRPORTPASSENGERS 1.4

MILLIONAIRPORTPASSENGERS

30.126 SK

1

2007Totalo cestockinBratislava exceeds

2008Firstregional BCEuropa (BanskBystrica)

ApolloBC II+ ABC Ithelargest businesscomplexin CentralEurope(81,540 m 2)

2009Thelowest o ceTake-upin Bratislava(63,550 m 2)

20141.5million m 2 - totalo cestockin Bratislava.130 thousand m 2 underconstruction.

r16,1989,Slovakhighversitystudentsacefuldemonstration in

Bratislava.Thenextdaypressed a big studentin Prague.That events of demonstrations.r27,the entiretopheCommunist Party,neralSecretary Milo

d. TheSoviet erachoslovakia becameate.

1992Elections in 1992 indirectlydecided abouttheseparation oftheCzechoslovak Federation.In

July1992 SlovakNational Counciladopted a declaration on thesovereignityof theSlovak Republicand in September theyapprovedtheConstitution of theSlovakRepublic.

1992The rstIKEAstorein Slovakia,BratislavaTomikov Street(2,000 m 2)

Entryof

K-Mart

1989Localdepartmentstores PRIOR

1995 The rst McDonaldin Slovakia,BanskBystrica

Currently16 stores in6cities.

1997FirstretailparkSoravia

1999FirstHypermarketTesco(Nitra)

2000Firsttraditionalshopping centerin Slovakia -Polus CityCenterBratislava

(40,000 m 2)

2002Firstregional traditionalshopping scheme,Optima in Koice(36,000 m 2)

Opening of the1stphaseof thebiggest shoppingcenterin Slovakia -AVIONShopping Park(today103,000 m 2)

2009Totalsupplyoftraditionalretailspacein Bratislavaexceeds 300thousand m 2

198 296 420 L NUMBER OF HIGHWAY (KM) TOTAL NUMBER HIGHWAYS (KM)

Car production inSlovakia/year

O F F I C E

S E C T O R

R E T A I L

S E C T O R

I N D U S T R I A L

S E C T O R

1989Formationof theo cemarket(o cespacetorente.g. Technopol,Incheba inBratislava)

1989Localwarehousesand owneroccupiedschemes.

2000Firstintegrated o cebuilding to theSC- Millenium Tower(Polus Tower)

Entryof Hewlett-Packard

2003EU MembershipReferendum92.46%voted YES

2014Totalsupplyof retailspacein Slovakia exceeds

IIHF WorldChampionship

Source:Colliers International,SlovakStatisticalO ce,Sario,AirportBratislava

2004 (March29)Slovakia became memberof NATO

2004 (May1)Slovakia and other9countries becamethemembers of EU

1.3 million m 2

NATO

NATO

1 million m2

1 million m2

2010Record levelof o ceTake-upin Bratislava(153,500 m 2)

2012Firstgreeno cebuilding BBC1 Plus inBratislava

(14,568 m2)

1992Startofproduction -VolkswagenSlovakia inBratislava

2007

Entryof Prologis(acquisition ofParkridgeportfolio)

Entryof VGP

2009Entryof

Panattoni

2010Totalsupplyofmodern industrialspacein Slovakiaexceeds

2002Thetallesto cebuilding in BratislavaNationalBankofSlovakia (111.6 m)

Entryof Dell

1996

Entryof Tesco(Tescobought7departmentstoresfrom K-Mart)

2007H&M enters Slovakmarket, rstshopinAvion Shopping ParkBratislava (currently14 shops)

1.5 million m 2

2004Firste-shop inSlovakia - Alza

2.2 MILLIONAIRPORTPASSENGERS

1STWEB PAGE 1STmailserverpobox.sk

SLOVAK REPUBLIC

1998Theeconomicalreforms madeprogress,decentralization of thestateadministration, privatizationof banks,insurance companies,telecommunications,largecompanies.The ow of foreigncapitalin thecountryincreased.TheGovernment was successfulalsoin breaking throughtheisolation of thecountry

2000Slovakia became memberof OECD,again wasincluded in thelist ofcandidates formembershipin NATO and EuropeanUnion.

328 391

1993

Entryof IBM2001Eurotel(SlovakTelekom)moving totheMillenium Tower

2006Highrisetowers inBratislava - Tower115and CBC I

1999

Entryof AT&T2005Entryof

Lenovo

CZECH AND SLOVAKFEDERAL REPUBLIC

1990Firstprivate bankin SlovakiaTatra Banka

Entryof Johnson

Controls toBratislava

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2013PointPark Propertiesannouncesacquisition byTPGand IvanhoCambridge

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Damian Harrington REGIONAL DIRECTORRESEARCH ANDCONSULTING

EASTERN EUROPE

Colliers International

In 2004 I left the UK to work and travel across EMEA. After four years I was luredinto focusing on the CEE markets which have changed enormously in this time. Iremember backpacking around these parts in the late 90s and once you stepped othe beaten track, there was a sudden drop-o in the quality of space, environment andinfrastructure. As of today there is a huge di erence, visible in improvements to thebuilt environment and the quality of life available in the cities we live and work acrossthe region. So how did we get here? Roll on EU Accession and the CEE markets beganto transition through separate, yet blurred, growth phases.

Between 2002-2006 the markets underwent a restructure with inward investmentagencies helping to manage the vast growth opportunities in situ. Economies wentinto rapid expansion mode, resulting in a substantial demand increase for high-qualitycommercial real estate (CRE) from occupiers and investors. Investment activity hadbegun to trickle through, but from 2002-2006 it doubled almost every year.Then we hit the diversi cation stage of 2006-2009, as economies in the regioncontinued to expand with activity rippling out from the capital cities into larger regionalcities. The EU expanded further as Romania and Bulgaria came on board in 2007.This was swiftly followed by large-scale commercial development and a take-up boom,which helped to drive a surge in CRE investment during the peak years of 2006-2008.Then came the global nancial crisis, which arrived late in the region in 2009. Allmarkets were hit hard, bar Poland, which managed to weather the storm as EUstructural fund receipts, continued corporate investment and expansion and a bit ofgood luck helped drive the national economy through the tough times. As of 2014, theregion is now back on its feet with positive economic and business sentiment drivingactivity forward in the current investment cycleWhilst we have seen a lot of change in the last 10 years, the next 10 years willcontinue to see much change, but it will be di erent. Generational change, workspaceplanning, e-commerce and outsourcing will signi cantly impact the way we live,work and play. It will continue to be an exciting and interesting region to work in, and Ilook forward to remaining a part of this change.


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Ermanno BoerisMANAGING PARTNERSLOVAKIA

Colliers International

I came to Slovakia during my university studies as part of an internship for an Italiancompany that moved its production here. So I can only assess the development ofSlovakia starting from 1.3.1999. Before I came to Slovakia, I knew very little about theplace. Now I have been living here for fteen years and I feel at home.When the real estate boom started, I was working in the energy sector. When the realestate bubble burst, I started at Colliers.After all these years, I can say that the added value of Slovakia is the desire of peopleto work hard, to better themselves and develop their skills. This is important, as thosewith updated skills and training are in a better position to choose. The people wehired in the 90s for the Italian company I worked for at the time had undergone high-quality training and were able to adapt to changes.Nowadays, local voices are not just advisory ones across the many internationalcompanies with branches in Slovakia; they have the power to make decisions at aninternational level. Thanks to those who wanted to progress further, Slovakia can alsoboast of many internationally known success stories. Let us mention ESET, Sygicand, currently, the ying car!Progress has not been completely smooth sailing. Since the Slovak economy is quitesmall on a European scale, it is prone to the ups and downs of its larger tradingpartners. I experienced rst-hand the industrial growth stimulated by the tax reform

of 2004, but I saw the economy decline almost as fast as it had grown during theglobal nancial crisis.After joining the European Union, the borders opened and the bureaucracy decreased.For illustration, in logistical terms, we saved one day delivering goods from Italy toSlovakia thanks to the open borders. Bratislava was again a bit closer to Vienna, alsothanks to it being a low-cost alternative to the Schwechat airport.During the boom, an unsustainable euphoria that lacked logic seized the market. Iteventually became one of the causes that triggered the crisis. We are going to feel theconsequences of the massive purchases of irrationally expensive land for another 10to 15 years. The crisis also con rmed that a strong euro may not be good for export-oriented countries. In 2009, when the exchange rate changed, I claimed that it wasgood for the Slovaks, but, from the long-term perspective, it would not be good for

Slovakia. And the crisis con rmed that.A positive impulse for the Slovak industry and economy came in 2011. The productionof small city cars started at the Volkswagen plant and swiftly increased 100% to420,000 vehicles in a year as the company hired 1,800 new employees. This wasproof that it takes a relatively small amount of investment for the Slovak economy tostart moving. But there is also danger in that.In the real estate area, a number of investors started to be active between 2006and 2007, but only three remain after the crisis: Heitman, Immo nanz, and ERSTEImmobilien. On the other hand, a strong trio of Slovak investors are successfullyexporting their wealth into a number of countries.A normal market has been working in Slovakia for as long as four years now.The development curve, after much turbulence, has been increasingly stable.

Unfortunately, Slovakia is still not in the leading position in terms of investmentswithin the V4 region. But it has a strong potential in terms of quality. Leadingcompanies make high-end products here and that means that they trust this countryand its people.

Colliers International | Slovakia

Europeum Business CenterSuche Myto 1 | 811 03 Bratislava, Slovakia

+421 2 59 980 980

copyright 2014 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable e orthas been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies.Readers are encouraged to consult their professional advisors prior to acting on any of the material contained inthis report.

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How Are You Slovakia