Hunter Property Fund Management's Prague team have completed the acquisition of a newly completed OBI store at Priborska, Frydek Mistek. The transaction was arranged by way of a forward purchase agreement ahead of construction directly with the developer.
Hunter Property Fund Management's Prague team have completed the acquisition of a newly completed OBI store at Priborska, Frydek Mistek. The transaction was arranged by way of a forward purchase agreement ahead of construction directly with the developer.
The transaction price of EUR 9.2 mln reflects a gross initial yield of 8.6%.
HPFM’s Jeremy Birkett-Jones said that the approach to commit to acquisitions through forward purchase means development finance can be unlocked from banks which are otherwise constrained. 'The attraction to us was the calibre of retailer, the location and the fact the deal was based on a long lease, 15 years without a break,' said Birkett-Jones. 'It also shows our commitment to expand our investment portfolio in Central Europe through more opportunities like this.'
Frydek Mistek has a population of 61,000 and a catchment area of 100,000. The OBI outlet is located next to a large Tesco hypermarket and Okay Electronics retail warehouse. The location is now the dominant 'big box' retail location in the town, as well as having the critical mass to remain so.
