The sale of Czech properties by German open-ended funds (GOEFs) could revive the Czech investment market after a slow 2012. More than 11 of the 21 GOEFs active in Eastern Europe have given notice about their liquidation as of 2010, representing a total of 39 assets. In the Czech Republic, the German funds are expected to offload buildings worth €800m over the next four years, according to a recent report by Colliers International.
The Park, a Degi-owned office complex along the D1 highway in Prague 4-Chodov is one of the prime assets that will be on offer. Anděl Park in Prague 5 and the Olympia Olomouc shopping center will also be sold. Degi started the sell-off in 2011 when it offloaded its Palác Anděl office complex in Smíchov for CZK 1.3bn. The departure of the funds is likely to be gradual, however, as the funds are not expected to sell below market price.
