The sought-after Prague shopping center Arkády Pankrác is for sale. The current owner, the Israeli company G City, has agreed to sell it to a Czech institutional investor, as reported by the Bloomberg agency, at a price of 265 million euros, which is approximately 6.4 billion crowns.
In G City’s accounting, the property is valued at 243 million euros, i.e. roughly 5.8 billion crowns, with this real estate guaranteeing a loan of 112 million euros, or roughly 2.7 billion crowns. According to Bloomberg, the sale of the property is part of a broader plan of the G City group to dispose of assets that do not form the core of its businessin the aggregate amount of 6.3 billion shekels, i.e. 37 billion crowns.
The Pankrác arcades came completely under the wing of the G City company only this spring, when it purchased the remaining one-quarter share for 1.4 billion crowns. Until now, it was held by the original developer Arkád and then by their administrator, the company ECE Projektmanagement of the German Otto clan.
Mayor of Prague 9 Portlík: The city should develop to a height
Reality
I regret that the last few generations of politicians did not say where the city should develop, says Tomáš Portlík, mayor of Prague 9. According to him, many people still live in the belief that every green area should be protected, because there is allegedly too much development. “But if you compare Prague with foreign cities, you will find that the density here is one of the lowest,” says the mayor of the part of the city where the most apartments have been built in recent years. Portlík does not think that low density is bad, but it brings more costs for the maintenance and service of the city.
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In 2015, Atrium European Real Estate bought three quarters of Arkád. At that time, it paid 162 million euros to the previous owner of the center, Unibail-Rodamco, for a 75 percent share.. Originally a Central European owner, operator and redeveloper of Atrium European RE shopping centers, last year it became part of the aforementioned Israeli, globally operating group G City, which focuses on the management and construction of retail and multifunctional real estate not only in Central and Northern Europe, but also in North America. Brazil and Israel. Of the large domestic shopping centers, thanks to the control of Atria, the group also acquired Prague’s Atrium Flora shopping center and Palác Pardubice in addition to Arkád.
The sale of Arcades to a Czech investor, which G City has now approved, confirms the general trend of increasing dominance of Czech capital in the field of commercial real estate transactions. In this year’s first quarter, domestic investors participated in deals in the field of commercial real estate for 87 percent, which is a historically record figure, according to data from the consulting company Knight Frank. According to Knight Frank, the advantage of domestic investors is mainly their knowledge of the market, thanks to which they are willing to accept the seemingly higher risk of an investment.
The center of Arkády Pankrác – located near the metro station of the same name – was completed in 2008 and includes roughly 40,000 square meters of commercial space. During covid, the Arcades, like other shopping galleries, struggled with the increasing vacancy of commercial units, but they are currently 96 percent leased. The future business potential of Arcades can be increased by the currently under construction metro line D.
Special Real Estate Club
Realitní Club is a multi-platform project of the newstream.cz server dedicated to real estate, aimed at the B2B and B2C segment. It has three basic parts – web, print and event with a strong focus on social networks. The Realitní Club’s special page was the first to launch. The special is divided into four categories that deal with key areas of the real estate market in a “deep dive” manner.
Brownfields: the vision and future of undeveloped areas, especially in big cities; Commercial real estate: offices, coworking; New construction: development, rental housing, cooperative housing, mortgages; Reality and politics: how municipalities and the highest levels of central politics participate in construction.
They will be included conversations with developers, politicians, architects and designers.
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2023-07-30 17:15:14
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