Prague's Arkády Pankrác shopping centre is changing hands. The Czech real estate fund Trigea is buying it from the Israeli company G City for €265 million, according to information from Trinity Bank, newstream.cz reports.
The company G City has agreed to sell the Prague shopping centre Arkády Pankrác, which it previously owned, to the Czech real estate fund Trigea for €265 million. In G City's books, Arkády is valued at €243 million, with the company guaranteeing a €112 million loan on the property, or roughly CZK 2.7 billion. According to newstream.cz, the sale of Arkády, which has approximately 40,000 sqm of commercial space, is part of a broader plan by G City Group to divest assets that do not form the core of its business, amounting to an aggregate of 6.3 shekels, or CZK 37 billion (€1.544 billion).
The Pankrác Arcades only came fully into G City's ownership this spring, when it bought the remaining one-quarter stake for an estimated CZK 1.4 billion (€58.45 million). Until then, it was held by the original developer of Arcades and then by its manager, ECE Projektmanagement. Three-quarters of Arkád was bought by Atrium European Real Estate in 2015. At that time, it paid €162 million to the previous owner of the centre, Unibail-Rodamco, for a 75% stake. The original Central European owner, operator and redeveloper of shopping centres Atrium European RE, last year became part of the aforementioned Israeli, globally operating G City Group, which focuses on the management and development of retail and mixed-use properties not only in Central and Northern Europe, but also in North America, Brazil and Israel. In addition to Arcades, the group has also acquired Prague's Atrium Flora and Palác Pardubice shopping centres.
Like other shopping galleries, Arkády Pankrác was struggling with increasing vacancy rates during Covid but is now 96 percent leased. The future commercial potential of Arkády may be enhanced by the D metro line, which is currently under construction, as it will be the only shopping centre directly connected to two Prague metro lines, the C and the new D.
The Trigea real estate fund, which is part of the Partners financial group, was established in 2019 and focuses on commercial real estate, mainly office and retail buildings. Last year, the fund saw turnover grow 61 percent to CZK 121 million ( €5.051 billion), made a profit of CZK 30 million (€1.252 million) and managed a portfolio of CZK six billion (€250.506 million) for clients. The fund's assets include Prague's Louvre Gallery and other commercial and logistics properties in the Czech Republic, Slovakia and Poland (in Warsaw and Wroclaw).
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