SEB Asset Management AG's real estate company signed a preliminary contract for the 'Airport Praha' factory outlet centre, which is currently under construction, on behalf of its SEB ImmoInvest open-ended real estate fund.
The centre is being built on the northwest outskirts of the Czech capital Prague, around 500 metres from Prague-Ruzyne International Airport as the crow flies. It is expected to have roughly 160 retail units with a total rental space of approx. 30,700 m2, as well as 2,500 parking spaces.
The units will be between 40 and 800 m2 in size. The one-storey, rectangular development designed by the architects RTKL will be fully enclosed, with a walkway stretching all around the building. The largest shop units will be in the centre's corner sites.
Although the centre is not scheduled to open until March 2008, preliminary contracts have already been signed for around 43% of the rental space. The average lease runs for six years. Magnet tenants include international fashion/sport labels such as Adidas, Armani, Calvin Klein, Puma, Prada and Versace. Negotiations are currently being held on a further 22% of the space.
The inclusion of the centre in SEB ImmoInvest's portfolio is dependent on requirements such as a minimum letting rate of 90% when the facility is opened. The vendor B. Consulting carries the full project and construction risk until the building is accepted by SEB. The total investment volume (purchase price including incidental acquisition costs) is around €93 million, but may increase to approx. €98 million depending on the letting success achieved by the vendor.
Source: SEB Asset Management