ECM informed about signing the contract with Generali to build their new Prague headquarters in City Element building on Pankrac as a part of of so called City Project. The total usable space will be 7,500 sqm. Construction is expected to start in 3Q07 and should be completed at the beginning of 2009.
Our view:
ECM informed about preliminary agreement with Generali already in IPO prospectus in December 2006. It has been part of our pre-IPO valuation of EUR 54/share and signing the contract has been expected, therefore we see the news as neutral. Overall City Project is expected to provide approx. 100,000 sqm of rentable office and commercial space through 2009.