ARTICLES LABELLED WITH TAG Czech Republic

Only two shopping centres will be completed in 2016 in the Czech Republic due to the slow-down of construction activity in response to the perceived market saturation. Colliers International has released its Q3 retail market report for the Czech Republic, which also states that there are signs of new entrant demand which do not match suitable space availability. 

In H1 2016, a total of 3,350 apartments in 47 new residential schemes were completed in Prague. For the second half of the year, another 3,200 units are estimated to be completed in the Czech capital. In total, JLL expects 6,500 units to be completed in Prague, which is the highest figure since the real estate crisis in 2009. 

CA Immo has concluded an agreement with WOOD & Company to sell the Šestka Shopping Center in Prague, continuing its strategic withdrawal from segments that do not belong to the core business. The centre covers more than 27,300 sqm of retail space and had been part of the asset portfolio of CA Immo since 2011. The buyer is a fund of WOOD & Company, the leading investment bank in Emerging Europe. The transaction, which is subject to the standard conditions precedent, is expected to be closed within the next weeks. It was agreed not to disclose the purchase price. Law firm Clifford Chance Prague advised the seller on the disposal.

Prologis has signed two lease agreements with Sony DADC, a disc and digital solution provider for the entertainment, education and information industries, totalling 20,450 square metres at Prologis Park Pilsen-Štěnovice.

M7 Real Estate, a pan-European investor and asset manager, has raised its first Central European fund. M7 Central European Real Estate Fund I (M7 CEREF I) has received investor commitments from a number of family office and high net worth individuals totalling over €35 million to be deployed in the region. Following this initial raise, M7 CEREF I has acquired Oregon House in Prague. 

Central and Eastern European housing markets are over the crisis and prices have once again begun to rise. The general upswing, observed on European housing markets, is supported by a number of factors. Following the economic crisis, GDP has begun to grow once again in most countries and the interest environment is also favourable to borrowing. These both contribute to a recovery in housing market demand, which may then materialise in higher prices. In the case of housing markets in the Central and Eastern European region, significant differences in price dynamics may be observed. Hungary stands out from the field, where a highly significant price rise has been observed in the past two years with the prices of second-hand homes having grown by 29 percent. We take a look at Central and Eastern European housing markets.

According to the latest report by JLL, High Street Retail in Prague 2016/2017, the Czech capital is the most attractive destination for expansion of international retailers in CEE and is being considered as the gate when entering this region. Demand for quality space on Prague’s high streets, Pařížská and Na Příkopě, is outstripping supply which is reflected in the current rent rate of up to €190/sqm/month for a notional unit of 100 sqm in a prime location.

In Q3 2016, industrial space totalling 60,200 sqm was added to the Czech Republic’s industrial property market and there was 474,800 sqm of storage and industrial space under construction at the end of the quarter. The Industrial Research Forum has announced its preliminary industrial market figures for Q3 2016.

Emerging Europe Properties Fund and Discovery Group have sold Nakupní Park Centro Ostrava to Focus Estate Fund. The subject of the sale is a fully leased retail park in Ostrava. Operating since 2011, it offers 7,700 sqm of retail space. Long-term tenants include Mountfield, JYSK, Okay Electric, Breno, Jitona, Kasa, Super Zoo, and Rossmann.

Deka Immobilien GmbH has secured the building complex “The Park” in Prague under a purchase agreement with a controlled affiliate of global private investment firm Starwood Capital Group. Under the terms of the transaction—which were not disclosed—the office park will be transferred to the new institutional fund Deka-Immobilien Fokus Prag (DIFP). The fund will be launched when the sale is closed, which is expected to take place at the end of October.