Brno shopping center, Prague office sold to int’l buyers

Sales of Olympia shopping center Brno, Andel City 11 SO office in Prague to foreign investors latest signs of Czech market’s vitality

Olympia shopping center Brno foto: ECE/Rockspring Česká pozice

Olympia shopping center Brno

Rockspring Property Investment Managers and German shopping center developer and investor ECE announced the purchase of Olympia shopping center Brno from the Somerston Group. London-based Rockspring and ECE made the acquisition through a 50:50 joint venture.

“We believe that this property will continue to benefit from the ongoing improvements in the Czech retail real estate market, which has seen encouraging rental growth throughout the last year, a positive trend we expect to continue,” said Robert Gilchrist, Chief Executive of Rockspring, in a press release.

The 85,000 sqm shopping center was opened in two phases in 1998 and 2010. The sales price was undisclosed but growing competition for Czech assets is clearly a positive sign for owners of Czech property.

“This deal underlines the significant attraction of CEE markets where there is strong investor demand for prime assets outside of capital cities  driven by the strong domestic economy and consumer spending.  The JV created to acquire this asset is a trend we are witnessing across Europe, where equity is partnering with expertise to gain exposure to large and more management intensive assets,” said Richard Bloxam, director in Jones Lang LaSalle EMEA capital markets team, in a press release.

Jones Lang LaSalle advised The Somerston Group in the sale. In May, Czech investor CPI Group acquired Olympia shopping centers in Teplice and Mladá Boleslav from Vienna-listed CA Immo for some €96 million.

Prague properties in play as well

Invesco Real Estate (IRE), meanwhile, has announced the acquisition of class-A Andel City 11 SO office building located in Smíchov – Prague 5 for an undisclosed price. Andel City is a five story, 4,200 sqm building that is fully let and adjacent to the Angelo Hotel.

“The Smíchov office market is considered to be one of the natural extensions of Prague’s historic CBD, and this is also complemented by significant retail and hotel investment,” said Tomas Picha, Director of CEE Transactions at Invesco Real Estate, in a press release.

IRE acquired the property for a pan-European separate account mandate it manages for German client Nordrheinische Ärzteversorgung. IRE was advised by Cushman & Wakefield.