LaSalle Investment Management closed its first deal on the Czech market with the acquisition of Na Příkopě 23, 25 and 27 in Prague on behalf of the French public pension fund EFRAP. LaSalle purchased the properties for €80m from the Austrian private investor Wolfgang Müller, who also rebuilt the Diamant building on Wenceslas Square in central Prague. The package includes 4,000 sqm of retail space and 3,153 sqm of offices in three buildings along the city’s prime shopping high street. The space is fully leased to retailers including Tommy Hilfiger, Salamander and Tezenis.
“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,” said Beverley Shadbolt, fund manager at LaSalle. “Na Příkopě street is a ‘landlord’s market’, with tenant demand far exceeding supply of lettable 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.”
