MIPIM 2022 (21 MB)

"The investment
market is certainly
still somewhat more
localized in Austria
than elsewhere."
Anton Cermak,
Beacon Invest
in Europe to cover Eastern Europe. The area
around Vienna was the obvious choice.
The reason why the big international
investors don't come to Austria is perhaps
that they can't assess the market well
enough. Austrians are also reluctant to
invest in the USA for legal and economic
reasons.
Franz Pöltl: Low volatility and stable developments
do not really fit the strategy of the
opportunistic Anglo-Saxon investors. Their
business model is usually to exploit the
fluctuations of the cycle. The amplitudes on
the Austrian real estate market are simply
too limited.
David Moese: I can fully confirm that.
From the perspective of the US American,
investments in Austria are just not that
interesting. The market is perhaps also too
dull for them.
What are international investors looking
for in Austria? Is it primarily office and
residential real estate?
David Moese: I wouldn't rule out any asset
class. We see that with our investors as well.
Basically, all of them are interesting. Whereby
the country hotel outside of Vienna is certainly
not the main focus focus.
Anton Cermak: I think residential and office
properties are the focus. Some asset classes are
perhaps somewhat less of an option. Mainly
because the size of the properties is too small.
For example, logistics. What we see here as a
large logistics project is considered small or
at most medium-sized in Germany, France or
Italy. Overall, it is safe to say that the Austrian
market is simply too small for large international
investors.
Will the fact that a German institutional
investor acquired an apartment building
portfolio last year remain just an exception?
Franz Pöltl: That is likely to remain an
outlier. It is difficult enough for Austrians to
deal with the Austrian Tenancy Act (MRG)
in its full scope of application. One certainly
cannot expect international investors to
tackle it. That is also why hardly any foreigners
have invested in the apartment house sector
in the past. When they did, they always
had connections to Austria or Austrian roots.
Another factor is the returns: If you had
kept your investment for a long time, you
certainly could have been able to earn good
money. But the cash-on-cash returns that
international investors like to see has, as you
know, eroded a lot in the apartment building
sector.
Since you mentioned the MRG: What
hurdles and challenges do you still see in
Austria for international investors?
David Moese: Because we just talked about
apartment buildings, there is also the tax
aspect in Austria. I have a tax disadvantage if I
don't have an operation, such as pension funds
or insurance companies. This is different in
Germany when I can buy similar products.
As far as the legal hurdles are concerned, the
example of nursing care real estate comes to
mind. International investors would have to
deal with nine different building regulations
and care legislation procedures here.
MIPIM | 2022
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