Czech firm Conseq Investment Management has acquired the Korso Karviná shopping centre in the Northern Moravian region of the Czech Republic from private equity real estate investment firm Bluehouse.
Financial details were not disclosed.
According to broker Cushman & Wakefield, the deal marks this year’s first shopping centre transaction on the Czech market.
Iain Fanthorpe of Bluehouse said: 'The sale of Korso Karvina was the result of accomplishing the objectives of our business plan which was to build upon the shopping centre’s strong fundamentals and reposition it as a modern retail destination suitable for longer term investors seeking well performing and stabilised assets.
'We are proud to hand over Korso Karvina to its new owners and on to its next chapter.'
Asset management programme
Bluehouse bought Korso Karviná in 2017. During that acquisition as well as during the current disposal, Cushman & Wakefield was its advisor.
Over the last three years, a successful improvement in the tenant mix and increase in the centre’s performance took place. It was completely redeveloped and revitalised, including reconstruction of the Albert hypermarket and most tenants’ shops.
Michal Soták, partner and head of the capital markets team in the Czech Republic at Cushman & Wakefield said: 'Bluehouse bought Korso Karviná shopping centre with the intention to maximally utilize its potential and significantly increase its value.
'Thanks to quality revitalisation and a new letting strategy, it succeeded, the sale of the centre now being another natural step of the investor’s plan.
'The transaction proves the great interest in all types of commercial properties on the very stable Czech market, where investors would like to apply their accumulated capital.
'After a period of uncertainty caused by the Covid-19 crisis, they now return to retail projects with optimism.'
Buyer strategy
Conseq acquired the project via its open-ended fund, Conseq Realitní. Conseq is the largest independent investment manager in the Czech Republic.
Said Vladan Kubovec, portfolio manager, Conseq Realitní: 'Conseq considers investing in retail asset from long term perspective and the acquired shopping centre Korso Karviná represents an excellent addition to the fund Conseq Realitní.
'Korso Karviná is the first shopping centre in our portfolio. Together with our advisors we have carefully analysed many investment opportunities, where the center refurbished by Bluehouse was selected as the best choice because of location and tenant mix.
'This relatively quick transaction improves the asset quality of Conseq Realitní.'
Together with Cushman & Wakefield who acted as commercial advisor, the CMS legal firm and financial advisor ASB participated in the transaction.
CBRE advised the buyer during the acquisition, Eversheds Sutherland provided legal services and E&Y financial and tax services.
