GE Commercial Finance Real Estate Central Europe officials claim they got a slow start in the Czech Republic, but it's hard to see that now because it's picking up promising properties and loans like a magnet.

In the past two months, GE has announced two major acquisitions in the Czech Republic. First it bought the IGY shopping center in Ceské Budejovice, south Bohemia, from ING Real Estate Development for 44 million euros ($54 million/1.3 billion Kc) and then nonperforming loans worth approximately 35 million euros from KONPO, a subsidiary of state bailout agency Ceská konsolidacní agentura. GE is a subsidiary of the U.S.-based company General Electric.

Both buys are good moves in a country experiencing strong economic growth, according to economic analysts. Shopping centers are a sound investment because consumer consumption is growing along with gross domestic product, which increased 4 percent last year. And nonperforming loans are a safe bet because people are more likely to repay debts in a healthy economy than a stagnating one.

"I think it's a good time to buy nonperforming loans because the economy is doing rather well and there is a better chance of collecting," said Pavel Sobísek, chief economist at HVB Bank.

With more than five years on the market, GE Commercial Finance Real Estate is utilizing past experience and successes to make 2005 one of its best years yet, and is looking to expand operations here and in the region.

The company, which focuses on real estate and nonperforming loan acquisition, predicts it will close four times as many deals this year as in 2004. Year-on-year revenue is expected to grow around 50 percent, and GE is planning to take a more aggressive strategy to solidify its position in Central and Eastern Europe (CEE), according to Karim Habra, the company's managing director.

GE recently announced the purchase of a shopping center in Zabrze, Poland, for around 27 million euros, giving it one more acquisition in the first six months of 2005 than it had in all of last year. Five more deals are slated for completion by year-end.

Habra said that the value of the deals on the table, as much as 250 million euros in assets, isn't significantly larger than what the company achieved last year. Nevertheless, 2005 is a big year for GE because of the number of acquisitions it was able to make in an increasingly competitive market. "It's a good result today because there are lot of investors looking for products in the region," he said.

The country's accession to the European Union in May 2004 has brought more competition as it represents a stamp of approval to investors who might be nervous about investing in the region. Yields also remain as much as 3 percent higher here than in Western Europe, Habra said.

Indeed, GE isn't the only player in town looking to snatch up property. Orco Property Group recently bought a shopping center in Brno, south Moravia, and Deutsche Bank and Heitman are also active in real estate acquisition.

So how has GE been able to make such a large jump in acquisitions this year with competition champing at the bit? A proven track record, Habra said.

The company entered the market in 1999, and revenues were at the break-even point until 2003. But two lucrative acquisitions in Poland and the Czech Republic proved the company was able to compete on the level its mother company demands, Habra said.

The increase in resources that followed has allowed GE to expand its operations. Ten new employees were hired this year, bringing the number of staff to 40.