CBRE Manages Van Graaf’s Building in Prague
CBRE, the world leader in commercial real estate services, has been given a new mandate for management of Retail, Office and Residential building in Wenceslas Square in Prague, where Van Graaf department store is the majority tenant. The change of the building manager occurred as part of its sale. The new owner is a fund managed by BMO Real Estate Partners, part of the Bank of Montreal. CBRE provided the purchaser with consulting services and the purchaser entrusted CBRE with the role of the new property manager, as well as leasing coordination services. This instruction is the eight one that the CBRE Asset Services has acquired this year and confirms the high quality of the services provided by CBRE.
The current portfolio manager, BMO Real Estate Partners, purchased the property from MTK Developments. CBRE has been entrusted with managing the building, which was formerly run by the original owner, since the end of September. The new owner is a core fund that wants to keep the property long-term. The majority lease tenant Van Graaf signed a new lease agreement valid until 2045.
We’re very pleased to have been given the mandate for managing Van Graaf’s building in the centre of Prague. I believe that our team will provide our clients with a comprehensive and effective solution thanks to our practical knowledge and experience in facility management, both technically and operationally, and meet their expectations. At the same time, we want to focus on improving and optimizing services and caring for tenants.
Property located at the high street is highly demanded both by tenants and investors due to its limited availability. Turnovers at the high street go up, which has a positive impact on the increase of the rents. For this reason the Van Graaf building is a great investment. Its revenues are secured by the long-term lease.
The Van Graaf building, located on Wenceslas Square 834/17 in Prague 1, has a total rentable area of almost 12.5 thousand sq. m. and it is fully occupied at this time. The majority tenant Van Graaf uses more than 8 thousand sq. m. of retail space and 350 sq. m. of offices, and warehouse space in its underground floors. On the remaining seventh floor there are only offices leased to smaller law and consulting companies, while there are housing units currently managed by one operator for short-term rentals to tourists on the top eighth floor.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.