French pension fund buys Prague high street property for EUR 80 mln

The three adjacent high street buildings comprise more than 4,000 sqm of retail space as well as a 3,153 sqm office unit. It is fully leased to tenants such as Tommy Hilfiger, Salamander and Tezenis. LaSalle was advised by White & Case, KPMG, JLL and Cushman & Wakefield for this transaction.

Beverley Shadbolt, a fund manager at LaSalle Investment Management has commented: “The acquisition of this high quality core asset allows the fund to expand its exposure into the Czech retail market in one of Prague’s most sought after retail locations. Na Příkopě is a ‘landlord’s market’, with tenant demand far exceeding supply of leasable space. Given the prime location of the assets combined with sustainable existing rents and an attractive value uplift opportunity, we are confident that it will produce attractive initial yields versus comparable transactions in Western Europe. Central European economies are among the best performing in Europe at the moment, the markets are liquid and offer good continued prospects for investors.”