This document summarizes the development of the office market in Bratislava, Slovakia from 1989 to the present. It discusses how the market started with refurbishments and built-to-suit developments due to the lack of modern commercial space after political changes in 1989. Two pioneering speculative office projects from 1997-1999 and 2003-2006 demonstrated the potential for non-prelease development and helped establish the real estate development industry. The current Bratislava office market is analyzed in comparison to other European cities, with total stock of 1.5 million sqm and a vacancy rate of 13%. Looking ahead, the document forecasts continued development of around 80,000 sqm of new office space annually, with a stronger focus on

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.