Valad Europe, part of Cromwell Property Group, a diversified global real estate investment manager, has pre-let 15,000 sqm of space to the Austrian retailer Kika Nabytek for a new store at Galerie Butovice in the Czech Republic. Galerie Butovice is in the Valad Central European Retail Partnership (VCERP).
Planning consent was granted in November to expand the Galerie Butovice shopping centre by 15,000 sqm to 51,000 sqm, making it one of the leading retail destinations in the region of the western part of Prague.
This letting follows an intense period of asset management since Valad acquired the shopping mall two years ago, which has included the completion of more than 40 new leases and lease renewals. Notably was the extension of a lease with the anchor tenant, hypermarket Ahold / Albert, until the end of 2027.
The general contractor, HSF System, started construction of the new store in December. Additional repositioning work at Galerie Butovice that will include work to the existing centre and a new facade to the building is scheduled to continue in 2017 as well.
Karol Pilniewicz, Valad Europe’s Head of CEE, commented: “Since acquiring Galerie Butovice two years ago, we have made huge progress restructuring the asset, improving the lease profile, tenant mix and now adding 15,000 sqm of prime retail space for one of the major retailers in the region.”
VCERP invests in first and second generation shopping centres, retail parks and retail outlets in primary and secondary macro locations in Poland and the Czech Republic.
Valad Europe manages just under €4 billion of real estate assets and investment capacity across its funds and mandates in Europe. With a team of 28 in Central Europe, Valad manages approximately €870 million of assets comprising 730 tenants, occupying 985,000 sqm of space across Poland, Czech Republic, Hungary and Romania.