We saw a strong start to the year with total investment volume over EUR 1.6 bln in 17 transactions in Q1. The largest transaction in Q1 was the sale of a residential portfolio of Round Hill Capital, largely located in Ostrava and its surrounding, acquired by the Swedish company Heimstaden Bostad, one of the largest residential owners in Europe. This deal alone accounted for 78% of the total volume traded in the period.

The second largest acquisition was hotel Carlo IV purchased by French real estate investment trust Covivio as a part of a portfolio of eight luxury hotels located in Prague, Rome, Nice, Budapest, Florence, and Venice.

Another notable transaction was the purchase of OC Kotva, concluded by Generali Real Estate. OC Kotva is located in the historical centre of Prague. The building, originally constructed in 1975, was purchased with significant reconstruction plans.

The final half of March saw large disruption with lockdown measures put in place to combat the Covid-19 outbreak. As a consequence we saw a large proportion of deals put on hold with many aiming to complete in H2 once more clarity is found in terms of both income sustainability and yield pricing. The transactions that continue to proceed are mainly in the office and logistics sectors. In contrast to the strong beginning of the year, we expect the investment volumes in Q2 and Q3 to slow down, with volumes picking up again in Q4, to reflect the delayed closing of many current deals. To provide a better perspective on the evolving COVID-19 situation, as well as implications for the real estate industry, please visit our website: www.cbre.com/covid-19