Focus Estate Fund investment fund acquired Most Retail Park located in Most (Czech Republic) with 6,471 sq m of retail space. The seller was TK Development. This is Focus Estate’s third investment in European commercial real estate. The investment fund previously bought Ostrava Retail Park (Ostrava, Czech Republic) and Galeria Sandomierz (Sandomierz, Poland). The lease of Most Retail Park is secured by Cushman & Wakefield.
“This is our first asset with a relatively high vacancy rate. Hence we have a challenge to reconceptualise and improve the property in order to increase the profit margin to 12-15 %. First of all we need to increase visual and physical accessibility from the adjacent traffic routes and magnets of the area. We are in coordination with the town’s mayor’s office and the works are already underway. Our key focus is to increase the customer flows and turnovers of the tenants,“ said Maxim Shkolnick, Partner at Focus Estate Fund.
The seller of the property TK Development (Denmark) was represented by Dentons. The buy side was backed by Kocián Šolc Balaštík (KSB), KYHOS Real Estate and BDO and the funding was partly obtained from Raiffeisen Bank.
“The sale fits into our strategy as a developer company to sell retail projects and in this case to a professional real estate investment fund who will bring the asset into the next level and develop it further,“ said Mogens Pedersen, General Manager, TK Development.
“We’ve recently entered into the partnership with Focus Estate Fund to lease Most Retail Park and we are already in negotiations with well-known lessees. We have reasons to be optimistic since we have successfully worked with major brands all around Czech Republic and believe that the new property management and leasing strategy in Most Retail Park would establish a sustainable leasing and shopping demand,“ said Martin Kubín, Senior consultant, Retail Warehousing, Cushman &Wakefield.
Most Retail Park is located on the outskirts of Most, a town with 67k inhabitants, some 40 km away from Czech-German border. Opened since 2009 Most Retail Park offers 6,471 sq.m of commercial space (GLA) and 175 parking spots. Main lessees include Sportisimo, Venator, Auto Kelly, Breno, Cyklo World, Pet Shop, Phase.
Prague, October 25, 2017
