According to weekly Euro, Immoeast plans to build 10 shopping centres on the outskirts of big Czech cities in next three years. Company is prepared to invest EUR 150m in first phase of the project. Company has already experience with Stop Shop shopping centres in Hungary where it owns 6 fully leased ones. Immoeast plans to expand its Stop Shops also to Romania, Poland and Slovakia. However Czech Republic remains its main target market after Russia and Sweden. Majority of EUR 3.9bn CAPEX it plans to spend in Eastern Europe is aimed on Czech Republic.
Our view:
Czech Republic has one of the highest density network of shopping centres in Eastern Europe, exceeding in some cases also Western European countries. On the other hand Czech property market still provide upside, although company needs to be more picky in their projects and location.