Germany-based SEB ImmoInvest has signed a preliminary contract for the purchase of the factory outlet development Airport Praha through its open-ended real estate fund for EUR 93 mln. Factory outlet centres are a virtually new concept for Czech consumers, the company said in a statement. Once completed, Airport Praha will be the second factory outlet in the Czech Republic.
Germany-based SEB ImmoInvest has signed a preliminary contract for the purchase of the factory outlet development Airport Praha through its open-ended real estate fund for EUR 93 mln. Factory outlet centres are a virtually new concept for Czech consumers, the company said in a statement. Once completed, Airport Praha will be the second factory outlet in the Czech Republic.
The centre, located on the northwest outskirts of the Czech capital, is currently being developed by B. Consulting, and opening is scheduled for March 2008. The outlet centre will provide 160 retail units with a total rental space of about 30,700 m2, as well as 2,500 parking spaces. The one-storey, rectangular development designed by the architect company RTKL will be fully enclosed, with a walkway stretching all around the building.
SEB ImmoInvest said that preliminary six-year leasing contracts have already been signed for around 43% of the rental space. The major tenants include some international fashion/sport labels such as Adidas, Armani, Calvin Klein, Puma, Prada and Versace. The company also indicated that negotiations are taking place for a further 22% of the space. However, completion of the purchase by ImmoInvest is conditional on a minimum letting rate of 90% when the facility opens. Depending on the letting success, the total investment on Airport Praha may also raise to EUR 98 mln.
Asset Management's real estate unit said the only other outlet centre present in the country is the Freeport Outlet Center that, located on the border with Austria, mainly targets Autrian customers. SEB's acquisitions in the past year included the office building Maas Tower in Rotterdam and the Plaza Allegro office building in Helsinki.
SEB ImmoInvest was launched in 1989 and is positioned as a traditional absolute return fund with a global investment approach. The group, with assets of around EUR 6.1 bn, is the fifth-largest provider of open-ended real estate mutual funds in Germany.