ČS Nemovitostní Fond Purchased the Shopping Centre Forum Nová Karolina in Ostrava for 5,4 billion CZK
CBRE, the world leader in commercial real estate services, represented REICO investiční společnost ČS (acting on behalf of ČS nemovitostní fond) during the acquisition of the prestigious shopping centre Forum Nová Karolina, which is located in the heart of the Silesian city of Ostrava. The seller is a joint venture of the British investment group Meyer Bergman and a Canadian pension fund HOOPP.
“Forum Nová Karolina is a timeless property of regional significance. As part of our long-term investment strategy, we plan to further improve its food & beverage, entertainment and service offer, hence supporting the city center of Ostrava in general,” adds Tomáš Jandík, the CIO of REICO investiční společnost ČS.
CBRE monitor over 30 transactions in the Czech market. The most of them will be closed during the year 2019. The Czech investment market hit record in 2017, hence we expect the volume to decrease by 40% to a level of EUR 2.2 billion. The shopping centre Forum Nová Karolina represents the biggest retail transaction in the Czech market in 2018.
Also due to the disposal of Forum Nová Karolina, the retail real estate transactions will represent approximately one third of the overall investment volumes in 2018. We are still registering a high demand for quality shopping centres from both the local and the foreign investors. However, it is important to point out that local investors are very active on the real estate market and their share on the overall investment volume is steadily increasing. We expect their share to reach 50 % by the end of this year. Achieving this ratio is a positive indicator that the Czech Republic is catching up with matured western markets. We are pleased that ČS nemovitostní fond, the biggest mutual fund in the Czech Republic, has become the owner of such significant shopping centre. We also strongly believe that under its new owner, the centre will continue to prosper and attract current as well as new visitors.
Regardless of the ever-increasing e-commerce segment, shopping centres as investment products continue to be considered highly attractive. Since 2015, the turnovers in regional shopping centres across the Czech Republic have been increasing very dynamically year-on-year by 7 – 12 % (according to the CBRE Shopping Centre Index). It is safe to expect the continuing of this trend in 2018, because the current good economic climate (increase of GDP, growing wages, low unemployment) has given the purchasing power of the Czech population a significant boost. In 2019, CBRE also expects a year-on-year increase, but it will be smaller due to the slowing down of the Czech economy.
Forum Nová Karolina is located in the heart of Ostrava. It is a dominant regional shopping centre with over 200 retail units covering exactly 58 431 m2 of space for lease. It offers a wide range of stores and services, including such famous brands and chains such as C&A, Albert hypermarket, Marks & Spencer, Peek & Cloppenburg, Cinema City, H&M, Intersport and others. By carrying out this acquisition, ČS nemovitostní fond is officially coming back to Ostrava, where it hadn’t made an investment for over three years. In 2015, ČS nemovitostní fond sold a building on Ostrava’s Antonína Macka Street, in which the company Cestovní kancelář Fisher was the main tenant.