According to CTK, Immoeast acquired 3 office buildings in Prague’s BB Centrum, Czech Republic for EUR 160m, with total rentable space of 73,000 sqm. All three buildings are fully leased including renowned international companies.
Our view:
BB Centrum doesn’t have prime location, however it is in growing office district towards the south from the city center with rents around EUR 14-15/sqm/month. Prague office vacancy rates as at end of 2006 are expected to fall below 11%. The acquisition price per sqm of modern office space reached EUR 2,200 which is in-line with other similar transaction in the region. These ranges from EUR 2,000 to EUR 2,500 per sqm. Immoeast activities in Czech Republic account for approx. 15% of all lettable space in portfolio and company is expected to further increase its presence there.