LaSalle Investment Management has made its first acquisition in the Czech Republic on behalf of the French public service additional pension scheme, ERAFP.
It has purchased three adjacent buildings located on the city’s prime high street, Na Príkope, from a private owner for around €80 mln.
The asset combines over 4,000 m2 of retail space along with a 3,153 m2 office unit and is fully let to occupiers including Tommy Hilfiger, Salamander and Tezenis.
'The acquisition of this high quality core asset allows the Fund to expand its exposure into the Czech retail market in one of Prague’s most sought after retail locations,' commented Beverley Shadbolt, fund manager at LaSalle Investment Management. 'Na Príkope street is a ‘landlord’s market’, with tenant demand far exceeding supply of lettable space. Given the prime location of the assets combined with sustainable existing rents and an attractive value uplift opportunity, we are confident that it will produce attractive initial yields versus comparable transactions in Western Europe. Central European economies are among the best performing in Europe at the moment, the markets are liquid and offer good continued prospects for investors.'
LaSalle was advised by White & Case, KPMG, JLL and Cushman & Wakefield.
