ARTICLES LABELLED WITH TAG Czech Republic

Tenant representation is becoming an increasingly common phenomenon on the office markets of Central Europe, which is without a doubt a sign of a healthy, growing and more educated market. Their activity, however, often raises ethical questions as it’s still often unclear who pays for their services. Conflict of interest in tenant representation has been one of the key topics of two regional events: the Property Forum - RICS Prague Property Summit 2017 and the latest RICS Hungary Tea & Talk in Budapest.

Cushman & Wakefield has been appointed by CPI Property Group to continue as a property manager of two major shopping centers and one multifunctional complex in Central and Eastern Europe which have been recently acquired from CBRE Global Investors.

Helaba and pbb Deutsche Pfandbriefbank, acting as co-arrangers, are providing a €177 million facility to developer and investor CTP for the refinancing of CTPark Bor, one of the Czech Republic's largest logistic parks. The loan is being financed in a club deal, with each partner providing 50% of the facility and Helaba acting as agent. The transaction closed in April 2017 and has a term of seven years. 

There is currently 343 000 sqm of office space in development in Prague, 144 000 sqm of which is slated for completion this year. This is the strongest development pipeline since 2014. That being said, the first quarter did not launch the major increase in new office stock expected in the wake of the historically weakest year of 2016. Completion of the majority of new space is planned for the second half of this year.

Central European industrial markets have a bright future ahead of them but regulatory issues and labour shortage can pose a threat to further growth in many countries. The speakers of the first ever Prague Property Summit analysed the potential of the market from a European perspective.

Net take-up on the Czech industrial market in Q1 2017 totalled 238,800 sqm, representing a yearly increase of 13%. The vacancy rate reached 4.7%, having decreased marginally by 4 bps since Q4 2016. The Industrial Research Forum announced the final Industrial Market figures for Q1 2017. 

The first quarter of 2017 saw only one office building delivered to the Prague market. Strong demand from tenants helped the vacancy rate decrease by 1.1 percentage points to 9.4%.The Prague Research Forum announced the office market figures for Q1 2017.

Colliers has been appointed by FID Group as the Property Manager of Slovanský Dům and by B.H.Centrum a.s. as the Property Manager of Millennium which forms part of the complex including the Marriott Hotel. Both buildings are prime mixed-use properties situated in the heart of Prague’s CBD.

While Western European investment markets have peaked and investment volumes are going down, CEE markets are having a strong momentum with volumes going up. This growth is most visible in the Czech Republic which posted its strongest Q1 figures on record this year. Over 20 speakers and more than 100 visitors came together in the Czech capital for the first ever Prague Property Summit, organised by Property Forum and RICS, to analyse the potential of the market from a global perspective. 

Demolition is underway at the corner of Wenceslas Square and Opletalova Street in Central Prague, where a new mixed-used scheme will be developed by UK-owned Flow East. The new building, designed by Chapman Taylor, is to be called Květinový dům (Flower House, also known as VN47) and will comprise 19,500 sqm of office and retail space across nine floors. It will be constructed with the aim of achieving BREEAM ‘Excellent’ status. Flow East is expected to invest app. €37 million (CZK1 billion) into the project.