TK Development has sold the KolonÃ¡da Shopping Centre in Karlovy Vary in the Czech Republic. The sales price amounts to app. â¬34 million, based on a net return of about 8.6 % p.a. The sale, which reflects the continued intensification of investor interest in the Central European market, underpins the Groupâs forecast of a profit after tax of DKK 50 million for the 2005/06 financial year.
TK Development has sold the KolonÃ¡da shopping centre in Karlovy Vary in the Czech Republic to the UK investment banking group, Dawnay Day, London.
The shopping centre, which is wholly owned by TK Developmentâs subsidiary group, Euro Mall Holding, is under construction in Karlovy Vary (Karlsbad), a well-known historic town located in the western part of the Czech Republic. The 22,000 mÂ² centre will be operated by the Austrian Interspar Group, the anchor tenant renting the 7,200 mÂ² hypermarket. Interspar is a major hypermarket operator in the country, already operating 17 hypermarkets in the Czech Republic. The gallery section of the shopping centre will comprise 65 specialty stores. The centre has a catchment area of about 150,000 people.
The shopping centre will open on 16 March 2005, and more than 95 % of the premises have been let.
The sales price is app. â¬34 million (app. DKK 253 million) and based on a return of about 8.6 % for the investor. The sale will be completed when the shopping centre is handed over to the buyer in the course of spring.
Dawnay Day, London, is a major investment group in the British market managing assets worth more than GBP 1.5 billion, including about 500 investment properties. The sale reflects the continued intensification of investor interest and underpins business prospects in the Central European market.
Management maintains its forecast of a profit after tax of about DKK 50 million for the 2005/06 financial year.
Source: TK Development