CBRE Prague advised on the acquisition of Palac Flora in Prague for 191 mln Euro
CB Richard Ellis advised on the acquisition of Palac Flora, located in Prague. CB Richard Ellis represented Atrium European Real Estate Limited, a leading owner, developer and manager of shopping centers in Central and Eastern Europe, who purchased the asset from joint owners AFI Europe and Avestus Capital Partners.
Palac Flora is a successful shopping centre with office element on the upper floors. The property’s total leasable area is ca. 38,800 sq m, divided between ca. 20,200 sq m of gross leasable retail premises, ca. 17,700 sq m of office premises, ca. 900 sq m of storage area and 743 parking underground car parking spaces.
Palac Flora is located in the popular residential and commercial areas of Vinohrady and Zizkov in Prague 2 and 3, respectively, neighboring the city centre district. Palac Flora has excellent vehicular and public transport connections including direct access from the metro together with good tram and bus line coverage.
The strong performance of the property has been attracting a very strong tenant mix which is being continuously monitored and managed to maintain the high profile of the shopping centre. The centre has been selected as a market entry location for several tenants such as IMAX, Max Mara Weekend and Paul’s bakery. Currently there are ca. 130 stores with a strong focus on retail.
Katarína Turňová, Associate Director at CB Richard Ellis Capital Markets, Czech Republic, commented: “We are very pleased to work on this landmark transaction and believe that the new owner, Atrium European Real Estate, will continue the successful management of the centre.”
This transaction confirms the strong investment market in the Czech Republic, which has the potential to reach approximately EUR 2 bln in volumes by the year end. In addition, retail investment market enjoys one of the strongest year in the history of the Czech market, with the potential to close up to ca EUR 750 mln worth of retail and mixed used transactions.”