Atrium European Real Estate Limited has bought the Palác Flóra shopping centre in Prague for €191 million from its two previous owners, AFI Europe and Avestus Capital Partners – the former fund management company of Derek Quinlan.
Atrium, which is owned by Citi Property Investors and Gazit Global financed the purchase through a mixture of equity and debt, and said it is in line with its strategy of acquiring prime, income producing, supermarket anchored shopping centres in the tier one cities of the Czech Republic, Poland and Slovakia.
The acquisition is the largest real estate transaction in the Czech capital this year. The 404,727 sq ft property was opened in 2003 and comprises 215,000 sq ft of retail, which is 100% let, and 189,446 of offices, which are 99.1% let, over a four-floor underground car park
The company said it believes that Palác Flóra will benefit from the operational efficiencies and economies of scale made available from being integrated into Atrium’s wider portfolio.
The retail element of the centre attracts an annual footfall of over eight million visitors and comprises 130 units across four levels. It is anchored by a 19,806 sq ft Ahold-owned Albert supermarket and an eight screen Cinema City, together with a 3D Imax, whilst being fully let to a strong mix of international and local brands including Reserved, Cottonfield, Gant, Intersport, Lacoste, Levis, Miss Sixty, Pepe, Sergio Tacchini, Triumph and Vodafone.
Rachel Lavine, chief executive of Atrium, said: “This transaction is another significant step in Atrium’s growth and means that we now have 98 properties in the Czech Republic. Palác Flóra fits all the criteria we look for in an acquisition, being well located in a capital or tier one city, and fully let to a strong tenant base providing highly visible and secure income. It is also in one of our target markets and further increases the weight of income Atrium derives from ‘A’ rated countries.
“We believe that by bringing Palác Flóra under the Atrium management umbrella we will be able to further improve its performance due to the economies of scale available from being part of Atrium’s wider portfolio and from the asset management expertise our team is able to provide.”