European investment manager Meyer Bergman has signed a preliminary agreement to take control of an outlet centre in Prague, the Czech Republic, from Danish property construction firm TK Development.
European investment manager Meyer Bergman has signed a preliminary agreement to take control of an outlet centre in Prague, the Czech Republic, from Danish property construction firm TK Development.
Meyer Bergman is buying the Fashion Arena Outlet Center from landlords, TK Development and LMS Outlets Limited. TK Development owns 75% of the scheme with LMS holding the remaining stake.
The transaction price comes to a total of €71.5 mln.
The scheme provides 25,000 m2 of retail space over 110 stores and is currently 96% leased. The complex was developed by the vendors in two phases, with Phase I opening in November 2007 and Phase II three years later.
The vendors said the sale is dependant upon the final financing arrangement, which is expected to fall in place shortly, according to TK.
'The selling price for TK Development results in a minor profit relative to the carrying amount, a reduction of the balance sheet total and a substantial contribution to free cash resources,' commented the Danish group.
