08 March 2017
Brno
Reporter: Theo Andrew
Brno shopping centre acquired for €374 million
Deutsche EuroShop has acquired the Olympia shopping centre in Brno in the Czech Republic, from Rockspring Property Investment Partners and ECE Real Estate (RE) Partners, for €374 million.

Rockspring and ECE RE acquired the building in 2011 for a reported €250 million in an equal joint venture.

The acquisition, expected to be completed by the end of March, will generate a net operating income return of 5.1 percent for shopping centre investment firm Deutsche EuroShop.

Olympia is the largest shopping centre in the Czech Republic with 85,000 square meters of leasable space containing 200 shops at an occupancy rate of 98.5 percent.

The joint venture implemented a modernisation programme, introducing new store concepts and anchoring tenants, and signing 170 new leases in the past five years.

ECE Projektmanagement, which has looked after the property since 2011, will continue to manage the centre after the sale.

Michael Pryer, partner and fund manager at Rockspring, said: “This sale is the result of the successful asset management programme implemented by an expert team within the joint venture, who delivered a ‘core’ shopping centre product and, in turn, strong investment returns for our investors.”

Volker Kraft, managing director of ECE RE, said: “We are delighted that we have been able to divest our first property with a considerable increase in value about six years after the first ECE Fund was launched.”

He added: “This successful sale shows that the strategy of the ECE Funds, investing in existing shopping centers and realising their value-added potential, can be effectively implemented together with the ECE team on site."

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