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November 22nd, 2008
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May 21st, 2008 | Current Issue

'Forward-thinking' developments
Real estate company transforming Czech Republic with its sleek building projects

Diamond in the rough
Alena Šrámková is a driving force in Czech architecture

Divine intervention
New Saint makes a name for itself in the Czech Republic's high-end real estate market

Prague's spring song
Newly opened Hotel Sonata hums with light and warmth

BRIEFS


OFFICE The Endurance Real Estate Fund – Office Sub-fund, which is managed by Orco Property Group, has acquired the former Palace hotel in Bratislava. Orco Slovakia plans to open new offices in the building this month, according to company officials. The property is located at the corner of Obchodná and Poštová streets in the center of the capital city. It will provide approximately 3,000 square meters of office space and 800 square meters of commercial real estate space. Total investment costs are estimated at 12.1 million euros ($18.75 million/300.8 million Kč).

AWARD Jones Lang LaSalle has been voted the Best Real Estate Agency in Central and Eastern Europe for 2007 at the Central & Eastern European Real Estate Quality Awards. The company notes that this is the fourth time it has won this award over the past five years. The awards were held at the Hilton Hotel Warsaw with more than 500 of the region§s real estate and associated professionals in attendance.
PROJECT Slovak developer Cresco Group and international developer Quinlan Private Golub announced that it will develop an expansive 1.5 billion euro real estate development in the Petržalka district of southern Bratislava. Construction on “South City” is scheduled to start later this year and expected to finish in 2017. Developers say the project will consist of significant retail, residential and office space. There will also be a new train station built adjacent to the planned entertainment and retail center.
REPORT Central and Eastern Europe is still seeing a steady increase in revenue per available space, according to a new report by CB Richard Ellis Hotels Central and Eastern Europe. Alongside Vienna, Prague could be considered the most mature market in the region, offering an international standard of hotel rooms, the report shows. And, in terms of quality, Budapest is not far behind, although it is a smaller market. Budapest is expected to match Prague’s current quality of stock by next year.
SOLD Immoeast has sold its office property Anděl Park B to SEB Immobilien-Investment GmbH, SEB Asset Management’s real estate fund company, for about 71.5 million euros. Anděl Park B was acquired by Immoeast in 2005 and has about 23,000 square meters of space that is currently all leased out. The main tenants are Johnson & Johnson, Hochtief, Whirlpool, Ferrero, Carl Zeiss, UniCredit Leasing and Imperial Tobacco.
CENTER Plaza Centers N.V. has acquired a 31,000-square-meter site in Targu Mures, Romania, to develop a shopping and entertainment center. The center will have 32,000 square meters of retail space, or 120 units, for lease. The development, which is expected to cost around 75 million euros, will also include 2,600 square meters of office space and 1,000 parking spots. Construction will start this year and is scheduled to finish by the end of 2010.  
LEASE ProLogis today has leased 16,000 square meters of industrial space at ProLogis Park Budapest-Gyál to Cargo-Partner, a leading provider of integrated logistic services. CB Richard Ellis, the largest global commercial real estate services firm, acted as an adviser for that transaction. Cargo-Partner decided to move its entire headquarters and primary distribution center in Hungary to its new build-to-suit facility at ProLogis Park Budapest-Gyál. The building is scheduled for completion during the first half of 2008.
 
EVENT MIPIM, one of the biggest real estate and investment events held in Europe, attracted 30,000 attendees from more than 8,000 companies based in 85 countries, including the Czech Republic. MIPIM serves as a forum for addressing virtually all global issues and trends emerging on the global property market. Topics covered by the event included the U.S. mortgage crisis, the role of properties as a stabilizing force of the global economy, the sustainability of development and its reflection on the construction of environmentally friendly green buildings.
INVESTMENT Orco Property Group has a new investment on the Polish market, the Feliz Residence, an estate of top standard energy-efficient apartments located in Warsaw’s Ochota district next to the Szczęśliwicki Park. Two four-floor buildings will house a total of 40 fully fitted-out apartments of 55 to 137 square meters, including two luxury penthouses on the top floors with private lifts. The penthouses will be fitted with fireplaces.
HONORS Salans’ Prague and Bratislava offices were among the Salans’ offices named 2007 “Central and Eastern European Real Estate Legal & Consulting Firm of the Year” at the fifth Annual CEE Quality Awards ceremony in Warsaw. The CEE Quality Award follows on the heels of Salans’ real estate practice winning Euromoney’s “2007 Best Legal Services Provider Award in Emerging Europe” last September. Salans’ Prague office was one of the first international law offices to open in the city in 1991.
OUTLET This September, an outlet shopping center will open close to Ruzyně Airport in Prague. Named Galleria Moda, the center will offer all the leading international fashion brands. The project includes 120 shops selling top brand-name fashion. The official opening of Galleria Moda is planned for Sept. 9. More information is available at Galleriamoda.cz.
DEVELOPMENT Orco Property Group has taken hold of the real estate market in Bratislava with its new project, City Gate. The ground floor and first floor of the new City Gate will house a shopping gallery. On the upper floors, there will be 46 luxury apartments. Reconstruction of City Gate started in January and completion is planned for beginning of 2009. Total investment costs are estimated at 42 million euros.
WAREHOUSE ProLogis has leased more than 5,000 square meters of warehouse space at ProLogis Park Prague D1 EAST to Fiege, one of the strongest contract logistics providers in Europe’s core market. Other ProLogis customers in ProLogis Park Prague D1 EAST include L’Oréal, Kenvelo, P&P, DHL, Rossmann, Fresh Fruit and Teleplan. As of Dec. 31, ProLogis’ platform in Central and Eastern Europe totaled more than 3.1 million square meters of industrial space owned, managed or under development.
ARCHA Orco Property Group has received the approval for the first phase of its new project in the centre of Prague – Palace Archa. It is in the former building of ČSOB bank situated on Na Poříčí next to the Archa theater. The company owns the whole property, including the passage and courtyard and plans to transform the building into a modern multifunctional project, which is expected to be completed by 2009. Among the tenants will be Robert Half International and ČSOB will keep their current premises, according to Orco.
RETAIL The Czech Republic is the Central and East European leader when it comes to the development of retail parks, according to a recently released report from Cushman &Wakefield. For every 1,000 people, there is approximately 117 square meters of gross leaseable retail space, the report shows. A new trend is the expansion of the retail warehousing format to smaller towns like Hranice in Moravia, Rakovník, Příbram, Vyškov and others.
VACANCY The vacancy rate increased slightly to 5.9 percent this quarter, according to the Prague Research Forum. The increase was lower than previously expected as the high volume of building completions was almost matched by the high levels of leasing activity. The lowest vacancy levels,  the Forum reports, remain in Prague 3 and Prague 9. The highest recorded vacancy is in Prague 7 with 14.6 percent of its stock unoccupied, followed by Prague 6 with 12 percent vacancy.

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