LaSalle Investment Management has made its first acquisition in the Czech Republic on behalf of the French public service additional pension scheme “ERAFP”. It has purchased buildings located on Na Příkopě 23, 25 and 27 from a private owner for approximately €80m.
The asset is located in Prague and comprises three adjacent buildings on the city’s prime high street, Na Příkopě. It combines over 4,000m² of retail space along with a 3,153m² office unit and is fully let to occupiers including Tommy Hilfiger, Salamander and Tezenis. Na Příkopě is in the ‘Golden Triangle’, Prague’s most sought after retail and pedestrian zone accommodating many retailers’ flagship stores for Central Europe.
The Czech Republic has a strong, growing economy and forecast retail sales growth of 3.06% per annum. Prague is the Czech Republic’s most affluent city, with annual purchasing power 30% higher than the national average.
Beverley Shadbolt, fund manager, LaSalle Investment Management, said: “The acquisition of this high quality core asset allows the Fund to expand its exposure into the Czech retail market in one of Prague’s most sought after retail locations. Na Příkopě street is a ‘landlord’s market’, with tenant demand far exceeding supply of lettable space. Given the prime location of the assets combined with sustainable existing rents and an attractive value uplift opportunity, we are confident that it will produce attractive initial yields versus comparable transactions in Western Europe. Central European economies are among the best performing in Europe at the moment, the markets are liquid and offer good continued prospects for investors.”
Chris Zeuner, managing director for Central and Eastern Europe, LaSalle Investment Management, said: “The Czech Republic increasingly represents a compelling destination for investors. The acquisition of the property represents a rare opportunity to acquire such high quality and desirable high street retail space. It will also be the first acquisition of the Fund in the Czech Republic.”
LaSalle was advised by White & Case, KPMG, JLL and Cushman & Wakefield.
