ARTICLES LABELLED WITH TAG Czech Republic

The year 2017 saw the greatest amount of industrial space built in Europe in its history – more than 3.7 million sqm. This represents a 68% increase over 2016 and a 55% increase over the existing record dating back to 2007 (an additional 1.2 million sqm). The total industrial space in the region has increased by 17% as a result. Such are the results of a survey conducted by Cushman & Wakefield, a company that has been monitoring the industrial property market in the Czech Republic, Slovakia, Poland, Hungary and Romania on a long-term basis.

Curzon Capital Partners III (CCP III), a core plus Fund advised by Tristan Capital Partners, has completed a €64 million sale of Praha City Center office to Amundi Asset Management.

Czech online retailer alza.cz plans to bring its new self-service concept store to Hungary, local daily Magyar Nemzet reports. Alza opened its first similar store at Prague’s Flora metro station this January. The store, which is able to serve 1,000 costumes daily, operates with no staff and offers 24-hour accessibility. The company invested nearly €200 million in the opening of the store.

Available space on the industrial property market in the Czech Republic decreased and it makes the situation for occupiers in seek of premises more complicated. Potential tenants have to put up with longer terms of project realization in new warehouse spaces. The Czech industrial property market has changed from a market of tenants to a landlords market, JLL reports.

According to the latest analysis prepared by the Capital Markets team Cushman & Wakefield, investment volumes in Central and Eastern Europe reached nearly €13 billion in 2017. All CEE countries grew at a similar rate and maintained their share of the overall regional volume. Despite political risk perceptions, Poland grew most rapidly at 9% y-o-y from approx. €4.6 billion to €5 billion, which was the highest result recorded in the last 10 years. 2018 has already seen the benefit of deals that slipped from late 2017 with the investment volume in Q1 2018 likely to exceed €3 billion.

REICO, on behalf of ČS nemovitostní fond, has sold the Táborská 31 office building in Prague 4, one of the longest holdings in its portfolio. The 8,144 sqm building was purchased by 100 Towers Holding.

International Campus AG, a specialist in micro-living products, is continuing its growth in Europe and expanding into the Czech Republic. In a joint venture with Czech project developer Karlín Group, International Campus has acquired a development project in the Holešovice district of Prague with 529 high-quality apartments for students. It has been agreed not to disclose the purchase price. The building that is to become “THE FIZZ Prague” will have a gross floor area above ground level of 16,529 square metres over eight floors. The opening is planned for Q1 2020.

2017 was a great year for the CEE property market and the scene is set for 2018 to be even better. However, there are always risks to be wary of. Andreas Ridder, Chairman CEE at CBRE revealed Property Forum his expectations for the CEE investment market in 2018.

The fourth quarter of 2017 was very strong for the office market in Prague. Demand significantly increased and annual gross demand reached a new record. Five new office buildings were completed and the vacancy rate decreased to 7.5 %, while prime headline rents grew, JLL reports.

Atrium European Real Estate Limited announced the sale of 18 assets in Hungary and one in the Czech Republic for a combined price of €70 million, representing an 8% premium to the book value as at 30 September 2017. The disposals form part of the company’s ongoing strategy to improve its portfolio through the selective rotation of capital towards high quality, well-established shopping centres which dominate their catchment areas.