CBRE Global Investors has acquired, on behalf of a separate account client, the Letnany Shopping Centre in Prague, Czech Republic. The vendor was Tesco.
Letnany is a well-established shopping centre, built in 1999, comprising 63,478 sq m of retail, 3,551 sq m of office space, 1,791 sq m 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 sq m.
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 €1bn 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.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $88.7 billion in assets under management* as of September 30, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
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