CEE REPORT FLIPPING PAGES.pdf

Brown & Co Research Central & Eastern European Land Market Brief 2014

Martin Davies CEO, Westchester Group of Europe Ltd

Poland & Romania; Setting the scene for institutional investment

4 $QG UHODWLQJ WR Agricultural investment RSSRUWXQLWLHV²ZK\ GR \RX thinkPoland is compelling? Poland is one of the few Eastern Europe countries within the European Union where consolidated freehold ownership in scale is possible. Land farmed by the state farms in the communist era was not subject to a restitution process as it was in most other eastern European countries. The Agricultural Property Agency (ANR) was set up by the government to handle sales and leasing of farmland owned by the state. The 2.8m ha owned by the state in 2005 has been reduced to 1.8m ha in 2012, through a lease restructuring program. Leaseholders have been able to exercise a pre-emption right granted by lease agreements, having the opportunity to buy land, subject to agreeing to 30% of the lease area being surrendered and sold by a tender process. Private land sales have generally been at premiumover those of ANR land. In 2013 this premiumwas approximately 21%, making it worthwhile to navigate the bureaucratic process

MartinDavies CEOofWestchester (XURSHHQWHUV LQWRD4 $VHVVLRQRQ ZK\:HVWFKHVWHU D OHDGLQJDJULFXOWXUDO DVVHWPDQDJHPHQW FRPSDQ\ ²KDV decided tobegin investing in theRegion.

4 :KDW DUH WKHPDLQ UHDVRQV ZK\:HVWFKHVWHU are considering investing in Poland? First and foremost Poland is one of the strongest performing economies in Europe. GDP in 2013 was US$517.5 billion, 3% of the EU total, with yearly growth between 2008 and 2013 of 2.7%. Bene%ting from a diversi%ed economy, Poland was the only country in the European Union not to su#er recession after the %nancial crisis of 2008. A signi%cant net exporter of goods and services, it has recently moved into an overall trade surplus. IMF and UK Foreign O$ce forecasts predict long-term annual growth in the economy of 3%.

10 CEE Land Market Brief 2014