Aareal Bank has provided a loan of Ã¢âÂ¬ 75 m to finance the InterContinental Hotel in PragueÃ¢â¬â¢s historic city centre. First built in the 1980s, this 5-star establishment on the banks of the river Vltava underwent extensive renovation work last year. In addition to its 372 rooms, including 89 suites, it has two restaurants, a cafÃÂ©, bar, shopping area, fitness centre, swimming pool and seven conference rooms.
Ã¢â¬ÅWe see tremendous potential for property financing in the Czech Republic Ã¢â¬" especially in Prague,Ã¢â¬Â says Johannes Lobkowicz, Head of Aareal Financial Services Spol, Aareal BankÃ¢â¬â¢s Prague-based subsidiary. Having launched its lending business in the Czech Republic in late 1997, Aareal BankÃ¢â¬â¢s lending volume in the country has since grown to Ã¢âÂ¬ 250 m. Thanks to new legislation and amendments introduced in the run-up to the Czech RepublicÃ¢â¬â¢s accession to the EU in May 2004, its loan terms, collateral requirements and repayment modalities have been bought fully into line with Western practices, comments Mr. Lobkowicz. More and more international investors are therefore on the look-out for attractive opportunities to finance the purchase and development of commercial property in the country.
Source: Aareal Bank A.G.