Atrium European Real Estate Limited, one of the leading real estate companies focused on shopping center investment, management and development in Central and Eastern Europe, announces that it has acquired the Palác Flóra shopping center in Prague for 191 million from its two previous owners, AFI Europe and Avestus Capital Partners.
Palác Flóra is one of the prime shopping centers in Prague and this acquisition is the largest real estate transaction in the Czech capital this year. The 37,600-m² GLA property was opened in 2003 and comprises 20,000 m² of retail, which is 100% let, and 17,600 m² of offices, which are 99.1% let, over a four-floor underground car park.
It is well located in an affluent residential area with excellent transport links that include its own Metro subway station. The company believes that Palác Flóra will benefit from the operational efficiencies and economies of scale made available from being integrated into Atrium's wider portfolio.
As a result of the acquisition the value of Atrium's income-producing portfolio increases to ca. 2.0 billion, of which 75% by value is situated in 'A-' or above rated countries. Further, the Czech Republic, the highest rated country in Atrium's markets, at A+ /Positive, now accounts for around 23% of the company's total portfolio by value; meaning it becomes Atrium's second largest market after Poland at 46% (A- Stable).
In addition, Atrium's exposure to the Czech Republic's largest two cities, Prague and Brno, has increased to 68% of the Czech portfolio.
The retail element of the center attracts an annual footfall of over 8 million visitors and comprises 130 units across four levels. It is anchored by a 1,840 m² Ahold owned Albert supermarket and an eight screen Cinema City, together with a 3D Imax, whilst being fully let to a strong mix of international and local brands including Reserved, Cottonfield, Gant, Intersport, Lacoste, Levis, Miss Sixty, Pepe, Sergio Tacchini, Triumph and Vodafone.
Palác Flóra also offers three separate towers of prime office space. One of the towers has a roof terrace on the top floor, while each tower has its own lobby and comprises five floors with standard floor plates of around 1,900 m². It is let to a range of international and local businesses, including Danone, Xerox, and Exxon Mobil.
Commenting on the acquisition, Rachel Lavine, CEO of Atrium said: "This transaction is another significant step in Atrium's growth and means that we now have 98 properties in the Czech Republic. Palác Flóra fits all the criteria we look for in an acquisition, being well located in a capital or tier one city, and fully let to a strong tenant base providing highly visible and secure income. It is also in one of our target markets and further increases the weight of income At