Rodamco Europe announces it has signed an agreement with the German development company ECE for a new shopping center, Arkády Pankrác in Prague, Czech Republic. Rodamco Europe will have a 75% share ownership at completion with a total investment of ca 72 million, at an estimated net initial yield of 7.4%.
The Arkády Pankrác shopping center will provide in total 39,800 m² of retail space, with a planned opening in Q4 2007. The investment in Arkády Pankrác is fully in line with the strategy of Rodamco Europe to focus on top-quality retail in dominant locations in major European cities and strengthens Rodamco Europe's dominant position in Prague. The shopping center will be Rodamco Europe's third in Prague after the Cerny Most center and the Chodov shopping center, which will open to the general public on November 9 2005.
The co-owner of the shopping center is the Otto family from Hamburg. All leases will be denominated in Euros and Rodamco Europe's share of the Net Rental Income (before tax) will be 5.3 million per annum.
The shopping center will be build in the Pankrác district, the largest district in Prague, located on top of a metro station in a densely populated residential area with an income level higher than the average.
Source: Rodamco Europe