CBRE Global Investors has acquired, on behalf of a separate account client, the Letnany Shopping Centre in Prague. The vendor was Tesco.
Letnany is a well-established shopping centre, built in 1999, comprising 63,478 sqm of retail, 3,551 sqm of office space, 1,791 sqm where a petrol station is located and 3,200 parking spaces.
The centre is anchored by Tesco’s flagship store in Czech Republic. The store has recently undergone a comprehensive refurbishment and is renowned for its innovative design. Tesco has committed to the centre by signing a long-term lease for the hypermarket and office space totally 16,315 sqm.
There are 160 units and other tenants include Cinema City, H&M, C&A, Datart, Zara and SportsDirect. The scheme also benefits from a strong leisure offer including a skydiving arena, surf arena, and an aqua park within close vicinity.
“This acquisition is an excellent addition to our client’s real estate portfolio. It meets their investment criteria being a retail, trophy asset located in an established market. There are numerous asset management initiatives that we have identified including a significant refurbishment of the wider scheme.
The leisure activities in the surrounding area complement the destination and encourage visitors to the scheme. All of these are positive contributors to an asset that we believe will perform strongly for our client,” said Harald Flöer, Fund Manager, CBRE Global Investors.
John Mulqueen, Head of Transactions EMEA, CBRE Global Investors, added: “CEE is a very important region for our business, our local team completed approximately €1 billion of transactions during 2016. We continue to have a strong appetite for assets of this quality and a significant amount of capital to invest in the region on behalf of our clients during 2017.”
CBRE Global Investors was advised by Clifford Chance and CBRE. The seller was advised by Wilson & Partners and Cushman & Wakefield.