announced acquisition of remaining 50% stake in Czech Real Estate Estate Regions for EUR 4.8m from its partner Property Investor (CPI). will thus consolidate 100% of company which is ECM’s vehicle for projects in the Czech regional cities, like Terasy Unhost, Varenska Office Center in Ostrava or Diplomat hotel and office complex in Pilsen. CPI should remain ECM’s partner on a project-by-project basis elsewhere in CEE/SEE/CIS region.
We see this news to have rather neutral trading impact as we believe deal price is close to the net asset value of the properties in its portfolio. In general, we still see space for regional expansion in the Czech regions, which are still underdeveloped in comparison to standards in Western Europe.