JLL Capital Markets department represented real estate fund Pradera when buying Avion Shopping Park in Prague, Zličín. This is part of a retail park portfolio in the vicinity of Metropole Zličín, the Globus hypermarket and many other shops. Pradera bought Avion Shopping Park from IKEA. The total area of the park is approximately 34,000 sq m and is 100% leased.
“This investment is a strong cash-flow investment with good hard-working assets. The assets require a manager who are on their toes; Pradera benefits from talented people on the ground who understand the asset dynamics and how to best drive value. The locations of the properties are strong, both in terms of a strong anchor in the IKEA stores, however also with locations around major transport nodes and with excellent connectivity, well served to remain resilient in the changing retail landscape,” said Jenny Tuleby, National Director, JLL European Capital Markets – Retail
Thanks to its excellent position it can reach up to 2,59 million visitors within a one-hour drive. On the D5 motorway, some 47,000 cars drive around the center every day. Regarding that this is a very dynamic and sought after area for shopping.
The sale has two phases
The transaction itself involved sales in several countries, such as Finland, France, Sweden, Switzerland or German and Polish cities. The Prague transaction was one of the most extensive. That's why the whole process was overseen by JLL's London headquarters.
"Although Avion Shopping Park is a different concept than Metropole Zličín, due to its proximity and well-established commercial location, it addresses tenants who are mostly associated in shopping centers. Metropole Zličín can somehow compete with Avion in fashion, sports or electronics. On the other hand, Metropole, as a typical shopping center, has a limited supply of furniture and other bulky goods offered by Avion Shopping Park. That's why it has the potential to take on a slightly different target group, which in turn attracts a wide range of customers in this area," said Hana Kollmanová, Associate Director of Capital Markets JLL.
The outlook for the Czech retail market remains positive. The number of new investors entering the market for the first time (especially from South Africa) is also strong. This has led to an increase in investors' capital and interest in major shopping centers and retail parks in the Czech Republic. In the coming quarters, the cost of renting shopping centers and retail parks is expected to increase.
"We were pleased to represent Pradera and we appreciate that we could provide expert advice to ensure the smooth running of this internationally significant transaction," added Hana Kollmanová.