www.sambaslovakia.sk

1. Office Development in Bratislava
Yesterday, Today & Tommorow
Marcel Sedlák, HB REAVIS GROUP
September, 2014

2. Businessmen of Slovak origin active in global
real estate for many decades already

3. Content:
 Introduction
 Commercial Real Estate Development – Brief Intro
 Do you recall what happened in Bratislava?
 Current market: Isn´t it too much offices here?
 Future: Can we see the trends?

4. Introduction / Personal
 Basketball
 Chemostvit Svit, Inter Bratislava
 Playing for fun till today
 Law
 Law faculty Commenius University
 G. Lehnert & Co.
 Real Estate
 HB REAVIS GROUP

5. Introduction / HB REAVIS
 From leasing agency start-up to Leading CEE Real Estate Developer
 440 professionals in Bratislava, Prague, Warsaw, Budapest, London and Istanbul
 Total Asset Value of 1.6 bn EUR
 750 000 sqm GLA delivered
 Integrated real estate development model creates unique know-how > competitive
advantage
 Examples of Our Current Projects:
 London
 Warsaw

6. London, 33 King William street
The first CEE developer successful to enter London market
 21 338 sqm GLA office project with
strong business fundamentals
 location in the heart of City
financial district next to London
Bridge
 Completion scheduled: H2/2016
London calling!

7. Warsaw, Chmielna Project
 The highest tower in Poland to
be developed
 World class architects assigned
 Landmark Warsaw project
located in the heart of the city

8. Real Estate Development – Brief Intro
It´s all about creation the real estate solution for business

9. Looking back: How it all started?
Utvorte
koridor!
1989

10. How it all started?
 Dramatic changes in society & economy (political, regulatory, structural, etc.)
 Critical undersuply of modern commercial premises
 High cost of capital (double digit interest rates)
 Refurbishments / Redevelopments
 Built-to-suit development
 Speculative (non-prelease) development not emerged yet
Real Estate Development Industry not present on the market

11. Case study no. 1 – BBC I-IV (1997-99)
 The first project meeting modern
class office standards
 The first office projest started on
speculative basis
 Considered as the first significant
institutional real estate investment
deal in Slovak market
Pioneering Non-prelease Office Development

12. Case study no. 2 – Apollo BC I (2003-06)
 43 000 sqm GLA project started on
speculative basis (approx. 10% of
existing office stock!)
 Fully leased upon Grand Opening
(First rank tenants: Citibank,
Accenture, GM, Deloitte, etc)
 Project sold just couple of months
after opening to German
investment fund on approx. 7%
yield basis
Example of extremely successful development project cycle

13. Office market in Bratislava in 2014
Isn´t it too many office buildings in this city already ?

14. Office market in Bratislava in 2014
Isn´t it too many office buildings in this city already ?
Source: CBRE Slovakia: H1 2014 report

15. Selected office markets – Comparison
Total Stock
Saturation
ratio
Vacancy
Leasing activity
2013
Prime Rent
Invest. yield
(office)
(mio sqm)
Total stock /
population
(%) Sqm EUR/month %
London 21 2,4 7% 1 200 000 95 5,00
Warsaw 4 2,2 10% 600 000 25 6,50
Bratislava 1,5 3,5 13% 100 000 16 7,00
Praha 3.0 2,3 14% 290 000 19 6,25
Amsterdam 7,8 9,4 15% 280 000 35 5,75
Munich 20 14 8,2% 800 000 31 5,50
St. Petersburg 2,5 0,33-0,45 9-10% 175 000 26 10,50
Istanbul * 3,7 0,25 10% 175 000 35 7,00
Source: HBR, CBRE, JLL
*) available data vary

16. Future

17. Future: Property clock 2014
Useful tool but not crystal ball
Source: JLL report 2014

18. Future of offices in Bratislava:
Can we identify any trends?
 On supply side, approx. 80 000 sqm GLA assumed to be delivered
on Bratislava market on annual basis in upcoming period
 On quality side*:
 Communication explosion
 Sustainability
 Recruitment & Retention
 Health & wellbeing
 Efficiency
No boom anticipated, much stronger focus on tenant needs
*) Source: Foster + Partners – Workplace of the Fututre, 2014

19. Future of offices in Bratislava: Twin City South
Construction started 3Q/2014 Delivery 4Q/2015
Listen to Client > Use Know-How > Create Solution

20. Future of offices in Bratislava: Twin city South
Distinctive façade

21. Future of offices in Bratislava: Twin city South
Welcoming Entrance Lobby
24/7

22. Automatic external shading
Integrated HVAC system
3 m clear heightMaximum natural light
Structured CAT 7 cabling Raised floors
Technical parameters > Optimal solution > Emotional satisfacton
Future of offices in Bratislava: Twin city South

23. ˶We shape the buildings, buildings shape us!˶
W.Ch.
Thank You.