country commercial real estate in czech republic · 2018-11-19 · central bankers have signaled...

03/2013

Commercial real estate in Czech Republic – Scarce supply of core property still dominates development

Real

esta

te

Country Facts

2 I Real Estate Country Facts 03/2013

Real Estate Country Facts

Imprint: Publisher and media owner: UniCredit Bank Austria AG http://www.bankaustria.atEditor: Bank Austria Real Estate Consulting & Investment, Karla Schestauber, Tel. +43 (0)50505-54784Layout: www.horvath.co.at

Dated: 22. February 2013

A joint publication of Bank Austria Real Estate, Immobilien Rating GmbH (IRG) and UniCredit Political Studies.

Legal notice – please read this important information: This publication is neither a marketing communication nor a financial analysis. It contains information on general economic data and real estate market data and related assessments of real estate market developments. Despite careful research and the use of reliable sources, we cannot assume any responsibility for the completeness, correctness, up-to-dateness and accuracy of information contained in this publication.

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Past performance is not a guide to future performance. Please note that the value of an investment and the return on it may rise and fall, and that every investment involves a degree of risk.

The information in this publication contains assessments of short-term market developments. We have obtained value data and other information from sources which we deem reliable. Our informa-tion and assessments may change without notice.

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Real Estate Country Facts 03/2013 I 3

The past few months have seen progress in easing the problems experienced in the euro area. Sentiment in financial markets and in the business sector has improved and this should have a positive effect on the real economy in the com-ing months. While political risks should not be overlooked and setbacks may occur time and again, we think that the economy in the euro area will gradually

recover as the current year progresses. This means that the Czech economy is also enjoying a brighter outlook as over 80% of the country’s exports go to the European Union. Real estate business in Europe picked up in the final months of 2012. According to CBRE, the transaction volume in Europe’s com-mercial property market rose to EUR 41.5 billion in the fourth quarter of 2012, a level which was 48% higher than in the third quarter of 2012 and up by 16% on the fourth quarter of 2011. Demand still focused on core assets, however, also with a preference for liquid markets such as Germany, which are seen as safe. The transaction volume in Central and Eastern Europe continued to concentrate on Poland and Russia, while smaller core markets experienced a scar-city of supply. In 2012, investment in commercial property in the Czech Republic fell sharply, by 71%, to EUR 609 million compared

with the previous year. While demand for core property remained significant, supply was scarce.

Developments in 2013 will largely depend on how fast real estate investors’ risk appetite will grow and whether such an increase will be sustainable. We expect property markets in CEE to become more attractive again, and that demand for core real estate as well as value-added properties in attractive locations which offer signifi-cantly higher returns, is going to rise accordingly.

Real estate investors and developers are still relatively risk-averse. Also a number of banks are acting with restraint when it comes to granting new real estate loans in CEE countries. They all run the risk of missing major anticyclical opportunities. We as UniCredit Bank Austria are prepared to provide financing. In 2012, we recorded new business totalling about EUR 1.5 billion. Our strategy for 2013 aims at maintaining or raising this level. UniCredit’s extensive CEE network enables us to use our expertise in Austria and also draw on the local know-how of UniCredit Bank Czech Republic, thus providing our clients with wide-ranging support.

Yours sincerely,

Karla Schestauber

Risk appetite – the key word for future developments in real estate markets



The Czech economy ranked among the most developed countries entering the EU in 2004. Its GDP per capita amounted to EUR 14,880 in 2011, which in PPS represented 80% of the EU average. This put the country even ahead of some Western European economies of the old EU block (Portugal, Greece). The country’s convergence process gained momentum after the EU accession in May 2004. The simplification of good shipments let to an increase in trade with the EU. The proportion of exports to the block on total exported volume rose to above 80% where it has held up to date. Germany has remained by far the largest destination for Czech exporters, with its share staying above 30% on the overall exports.

In just four years to 2007, the export-to-GDP ratio jumped by 17 p.p. to 68% (80% in 2012), underscoring the country’s status of one of the most open economies. This goes hand in hand with another country’s feature: concentration of industry. The share of industry in total value added at around 30% is one of the highest in the EU.

The 2008 – 2009 crisis highlighted the vulnerability of the export-oriented Czech economy to external shocks. The robust real GDP growth of 6.6% on average in 2005 – 2007 was followed by a slowdown to 2.9% in 2008 and a contraction of 4.4% in 2009. Although the impacts of the global crisis were noticeable in the local economy, little harm was felt in the domestic financial sector. It was a combination of a number of positive characteristics, unique on a worldwide scale, what made Czech banks highly resistant: excess of liquidity, high assets quality, strong capital base, low

share of FX loans, focus on traditional banking activities etc. This all contributed to the fact that the local banking sector did not require any capital injection from the government and was able to stick to solid profitability rates. Following a period of moderate recovery in 2010 – 11, the recession got back to the economy in 2012. Both components of domestic demand – consumption and gross capital – pulled GDP down, while net exports made the only positive contri-bution to growth, albeit with slowing dynamic. In 2013, the country should move towards a gradual recovery in economic activity, sup-ported by improving external demand and an upturn in the inven-tory cycle. Private consumption, however, is set to remain low.

A low inflationary environment is typical for the economy, with the Czech National Bank’s (CNB’s) inflation target (currently at 2%) rarely being overshot in the country’s history. The principal reason for the elevated inflation since late 2011 has been the VAT rate hikes along with regulatory price adjustments in the housing segment, i.e. factors little relevant from the monetary policy viewpoint. We expect these effects to continue keeping the CPI growth above the CNB’s target in 2013 as well, although inflation should be roughly 1 p.p. lower on average than in 2012.

After a two-year pause, the CNB restored the easing of monetary policy by cutting interest rates in mid-2012. Last November, the key two-week repo rate was cut to a technical zero of 0.05%, yet the central bankers have signaled the need to loose monetary conditions further. Weakening the CZK through market interventions has been repeatedly mentioned to be the best solution. Up to now, it seems

Macroeconomic data and forecasts2010 2011 2012e 2013f 2014f

Nominal GDP (EUR bn) 150.1 156.1 153.0 155.2 166.1

Per capita GDP (EUR) 14,274 14,874 14,553 14,742 15,755

Real GDP yoy (%) 2.3 1.9 –1.1 0.4 2.2

Inflation (CPI) yoy, avg (%) 1.5 1.9 3.3 2.3 2.1

Unemployment rate, avg (%) 7.0 6.7 6.8 7.3 7.0

Exchange rate EUR / CZK, avg 25.29 24.59 25.14 25.50 24.90

Current account / GDP (%) –3.9 –2.8 –2.2 –0.5 0.0

FDI / GDP (%), net inflow 2.5 2.0 3.4 2.8 2.8

Budget balance / GDP (%) –4.8 –3.3 –5.0 –3.4 –3.0

Public debt / GDP (%) (ESA 95) 37.8 40.8 45.5 47.5 48.4

Total external debt / GDP (%) 46.5 48.8 50.4 51.9 53.0e … estimate; f … forecast

Sources: Czech National Bank, Czech Statistical Office, Unicredit Research

Czech Republic – healthy fundamentals, weak performance


The external stability of the economy has long remained firm, with the current account deficit holding below 4.5% of GDP since 2005. Moreover, the basic balance, which describes to what extent FDI inflow is able to finance the deficit on the current account, has lately shown visible signs of improvement.

that verbal interventions are sufficient to do the job. Given the benign inflation and economic outlook for 2013, the switch to a tightening bias is highly unlikely before 2014.

After years of solid gains, CZK has practically not been appreciating against EUR since 2008 and the CNB’s foreign exchange policy should not allow CZK to enter the firming path this year.

Contribution to real GDP growth

–8

–6

–4

–2

0

2

4

6

3Q123Q10 3Q111Q10 1Q11 1Q123Q091Q09

Source: Czech Statistical Office, Unicredit Research

GDP gross capital consumptionnet exports

%-points

EUR/CZK exchange rate

22

26

27

28

29

30

25

24

23

Jan. 1

3Jan

. 07

July 0

8Apr. 0

9Jan

. 10

Oct. 10

Oct. 07

July 1

1Apr. 1

2

Source: Czech National Bank, Unicredit Research

Basic balance (CZKbn)

20052006

20072008

20092010

20112012e

2013e0

50

250

300

200

150

100

–2

0

2

4

6

8

10

Basic balance (% GDP) – RSNet FDI inflowCurrent account deficit

Source: Czech National Bank, Unicredit Research

CPI (yoy %)

–1

0

1

2

3

4

Nov. 14

Jan. 0

9

Nov. 09

Sep. 1

0Jul

y 11

May 12

Mar. 13

Jan. 1

4

CNB CPI target

CPI

Source: Czech Statistical Office, Unicredit Research



Short supply of core property slows investment activity

Investors still concentrating on core assetsCommercial real estate investors were still looking primarily for core property in 2012 (very good location, prime tenants with long term rental agreements). Against the background of short supply, the investment volume in the Czech Republic last year dropped to 609 million euros according to CBRE data, 71% below the 2011 level. However, the fact must not be overlooked that 2011 was an exceptionally good year in which a whole series of very large trans-actions were concluded.

Not only did the number of deals drop in 2012, the transaction vol-ume also declined to an average of 30 million euros. Around half of all transactions were concluded by Czech investors, while investors from Germany, the USA, Austria, Greece and the United Kingdom were also active. Offices dominated with a proportion of around 60% of the total volume, followed by retail and industrial real estate. Prime yields at the end of 2012 were largely unchanged at 6.5% for offices, 6.25% for retail and 8% for industrial properties.

Tenants are increasingly looking for modern spaces with low operating costs. The expected economic recovery is likely to be reflected in increased new rental agreements from 2014 the latest, so we see good chances for developers and investors. In light of the short supply of core real estate, value-added investments (good location, but with need for renovation) offer especially attractive chances.

Investment volume in the whole CEE area declined by a good 30% last year, the Czech Republic’s proportion of this dropped significantly to 0.5% from 1.8% in 2011. A gradual recovery of risk appetite should however, improve the position of the Czech market again.

Czech Republic real estatemarket regarded as transparentThe Czech Republic is classified as a transparent real estate market by Jones Lang LaSalle. In the Transparency Index for 2012, the Czech Republic ranked 24th, just behind Austria in 22nd place, making it the second-highest ranking CEE country. Similar to Poland, the Czech Republic scores especially well in the depth of market data. The IPD (Investment Property Database) has also been presenting

Czech Republic - Investment Volume in Commercial Real Estate (in EUR m)

0

500

1,000

1,500

2,000

2,500

3,000

Source: CBRE

20122006 20102005 200920082007 201120042003

Market share in 2012

CEE

Austria

Germany

Italy

Czech Republic

Rest Europe

Source: CBRE

Office prime yields 4th quarter 2012City In % Change from high in bp

Vienna 5.00 –75

Warsaw 6.25 –50

Prague 6.50 –50

Bratislava 7.25 –25

Budapest 7.50 –50

Bucharest 8.25 –125

Moscow 8.50 –350

Kiev 13.00 –200Source: CBRE


rate risk should not be completely neglected, especially since the CNB has stated that a weaker koruna would be desirable.

Czech Republic real estate market in the more distant futureMany CEE countries (including SEE and CIS) are classified as developing countries. Pramerica takes the approach that the potential of these countries should not be measured in terms of population and GDP growth, but rather by the size and output of the “consumer class”. The consumer class is the segment of the population that has suf-ficient income and production power to use real estate of institutional quality, such as shopping centres, offices, modern apartments and hotels. Even though the Czech Republic already enjoys a high level of development and the population as a whole is considered as being the consumer class, high productivity growth will allow a relatively substantial increase in per capita GDP, which will boost the demand for commercial real estate in the long term.

an annual performance indicator for the Czech Republic since 2010, increasing transparency.

The low country risk also speaks for the Czech Republic. The CDS Spread development, which indicates a country’s probability of default, classifies the country’s default risk as being only marginally higher than that of Austria, while Poland’s risk, for example, is somewhat higher.

The Czech Republic remains outside the euro and is planning on retaining the koruna (CZK) for the foreseeable future. This gives somewhat greater flexibility in its monetary policy. The koruna has remained relatively stable against the euro in recent years, fluctuating in a corridor between 24 and 26 CZK/EUR. However, a certain exchange

5-year CDS spreads (in bp)

0

100

150

200

250

300

350

400

450

50

PolandAustriaCzech Rep.

01.1

0.08

01.1

2.08

01.0

2.09

01.0

4.09

01.0

6.09

01.0

8.09

01.1

0.09

01.1

2.09

01.0

2.10

01.0

4.10

01.0

6.10

01.0

8.10

01.1

0.10

01.1

2.10

01.0

2.11

01.0

4.11

01.0

6.11

01.0

8.11

01.1

0.11

01.1

2.11

01.0

2.12

01.0

4.12

01.0

6.12

01.0

8.12

01.1

0.12

01.1

2.12

01.0

2.13

Source: DataStream

EUR/CZK

20

28

30

32

34

40

26

24

22

36

38

Source: DataStream04

.01.

99

04.0

1.00

04.0

1.01

04.0

1.02

04.0

1.03

04.0

1.04

04.0

1.05

04.0

1.06

04.0

1.07

04.0

1.08

04.0

1.09

04.0

1.10

04.0

1.11

04.0

1.12

04.0

1.13

JLL Transparency Index 2012 EuropaTranspareny level Rang Market

2 UK4 Netherlands

High 7 France8 Finland9 Sweden

10 Switzerland12 Germany14 Denmark15 Ireland16 Spain17 Belgium

Transparent 18 Norway19 Poland20 Italy22 Austria24 Czech Republic26 Hungary28 Portugal

Source: Jones Lang LaSalle

GDP per capita of “Consumer Class” in USD 2012 2022

Russia 25,276 37,403

Turkey 21,412 35,347

Slovakia 18,130 34,270

Czech Republic 18,770 34,080

Hungary 15,630 26,960

Poland 16,207 26,430

Romania 15,082 24,353

Ukraine 11,829 22,283

Bulgarien 18,446 21,816Source: Pramerica



Czech office market – demand expected to increase in 2014 at the latest

Supply of office space has slowed significantlyPrague, the capital city, is by far the most important office market in the Czech Republic. The volume of office space has nearly tripled from 2000 to 2009 as many speculative office buildings which were started before the financial and economic crisis were still delivered to the market. The situation only calmed significantly in 2010. 2011 and 2012 saw about 100,000 m2 of new space come onto the market, far less than before the crisis.

Besides new buildings, renovated older buildings are becoming ever more important as tenants demand modern spaces with lower operating costs.

Some 80% of all office space is located in the nine office hubs, with the largest volume of office space in Pankrac-Budejovicka (inner city), followed by the central district and some way behind in Karlin. Much smaller hubs are Butovice-Stodulky, Holesovice, Chodov-Opatov, Smichov-Andel, Dejvice-Evropska and Vysocany-Prosek-Letnany.

This year, supply of new office space in Prague is again expected to be in the order of 100,000 m2, some 50,000 m2 of which will be delivered by the Florentinum development in the central district.

In Brno the Titanium development (phase 1) is also worthy of mention-ing with 20,000 m2 as well as Nová Karolina Park with 25,000 m2.

Office space scheduled for completion in 2013 or later (selection)Office project Total usable

area (m2)Year of delivery

Status City

Florentinum 49,000 2013 under construction

Prague

Nová Karolina Park 25,000 2013 under construction

Ostrava

Titanium (1. Phase) 20,000 2013 under construction

Brno

Libeň Dock 01 9,000 2013 under construction

Prague

AZ Tower 9,000 2013 under construction

Brno

Na příkopě 14 7,000 2013 under construction

Prague

BB Centrum/Gebäude G 5,500 2013 under construction

Prague

River Gardens II 23,000 2014 under construction

Prague

Jindřišská 16 6,000 2014 under construction

Prague

Jungmannova 15 7,000 2014 under construction

Prague

Source: IRG

Office market development in Prague 2000–2013(f)

20002001

20022003

20042005

20062007

20082009

20102011

2012

2013(f)0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Source: IRG, CBRE

Mill

ions

of m

2

Office stock in 1,000 m2

0

100

200

300

400

500

600

Vysocan

y-Pros

ek-Let

nany

Dejvice

-Evrop

ska

Smich

ov-Ande

l

Chodov-

Opatov

Holesov

ice

Butovic

e-Stod

ulky

Karlin

Zentru

m

Pankra

c-

Budejo

vicka

Source: CBRE


Despite the recession in the Czech economy, the relatively low development of new office space led to stabilization of the vacancy rate at 11.5% last year. Compared to other European cities, Prague is thus in the middle of the pack, on a similar level to Moscow or Brussels.

Prime rents in the central district have stabilised somewhat after the decline in 2009. In 2012 they were running around 20 EUR/m2/month. Rents in Karlin, Pankrac and Smichov are lower, between 15 and 18 EUR/m2/month.

Compared to other CEE cities, Prague is in second place behind Bratislava when it comes to existing office space per inhabitant, with 2.33. However, it is expected to be overtaken by Warsaw in the near future. Compared to western capital cities, the rising per-capita GDP is providing scope for new space in the medium to long term.

In 2012, total leasing activity reached approximately 250,000 m2, whereby new leases were around 150,000 m2 , below the long-term annual average of around 180,000 m2.

We expect moderately positive economic growth of the Czech economy in 2013. This will already help lease performance this year. From 2014 onwards, the demand for office space should continue to rise still further.

Office space per inhabitant in 2012, in m2Geneva 20.34

Copenhagen 20.02

Frankfurt 16.95

Zurich 15.76

Munich 15.16

Milan 8.93

Paris 7.61

Hamburg 7.42

Vienna 6.09

Bratislava 3.56

Prague 2.33

Warsaw 2.16

Budapest 1.82

Sofia 1.18

Tallinn 1.18

Bucharest 1.10

Moscow 1.04

Zagreb 0.81

Riga 0.80

Vilnius 0.71

Kiev 0.50

Belgrade 0.31

Istanbul 0.22Source: IRG

Vacancy rates in Europe, 2012

Dublin

Budap

est Kiev

Buchare

st

Madrid

Amsterda

mLis

bon

Moscow

Prague

Brussel

s

Stockh

olm

Istan

bul

Copen

hagen

Londo

nBerl

inRom

e

Warsaw Oslo

Vienna

Paris

0

5

10

15

20

25

Source: IRG

Vaca

ncy

rate

s in

%

Prime office rents Prague 2007–2012 (eop)

10

15

20

25

2007 2008 2009 2010 2011 2012

Source: IRG

EUR/m2/month

Take-up in Prague

0

50,000

300,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010 2011 2012

Source: BulwienGesa

in m2



New rentals exceed production of new spaceThe logistics market was hit especially hard by the world wide crisis after Lehman as the speed of reaction in this sector is particularly high. A construction stop in logistics properties, which are often built in phases/modules, is much easier than with a large office building or shopping centres, where such decisions have substan-tially wider implications. For this reason, relatively little space has come onto the market in recent years, with new rentals exceeding new supply since 2010. This has caused the vacancy rate to drop from a high of 18% in the crisis to its current rate of just under 7% on a national average.

At the end of 2012, there were a good 4 million m2 of industrial stock in the Czech Republic. Some 200,000 m2 were completed last year, with pre-leases exceeding 40%. Build-to-suit space is becoming increasingly more important.

Demand for logistics space is driven largely by the automotive component supply industry, making regional logistics hubs more important. Attainable rents outside the metropolitan area of Prague fluctuated 2012 in a corridor of 3.50 – 4.50 EUR/m2/month.

Fewer vacancies in the metropolitan area of PragueSome 40% of industrial stock is located in the metropolitan area of Prague, whereby almost 60,000 m2 were added last year. New rentals in 2012 were far higher at almost 190,000 m2. Accordingly, the vacancy rate continued its downward trend. However, there were tangible differences within the metropolitan area of Prague. In Prague North/North-East and Prague South/South-East, the vacancy rate was far lower than it was in the western districts, with a

vacancy rate of around 13%. More than 40,000 m2 are currently under construction. Finding tenants for this new space is not expected to be a problem. The situation is far more challenging for older spaces which no longer meet modern standards.

Stable rentsPrime rents have stabilised at just under 4 EUR/m2/month in the metropolitan area of Prague in recent years.

Prime yields around 8%Prime yields, which reached 9% during the crisis, have gradually dropped and are currently about 8%.

Prime rents logistics Prague, 2007–2012

0

2

8

1

7

6

5

4

3

2007 2008 2009 2010 2011 2012

Source: IRG

EUR/m2/month

Vacancy rate logistics Prague, 2007–2012

0

10

15

20

5

2007 2008 2009 2010 2011 2012

Source: IRG

in %

Czech industrial market

0

100

700

800

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012

Source: CBRE

in m2

New supplyTake-up

Czech industrial market – a relative success story


Consumers remain cautiousWeak private consumer spending is having a negative effect on the Czech retail sector. According to our forecast, consumer spending will remain an impediment to growth again this year. A revival is only expected in 2014. Large volume of existing retail spaceThe Czech Republic is a saturated retail market with a quite high volume of existing space. Despite this, new space is still coming to the market, even though growth has slowed significantly. Measured in terms off the absolute amount of stock available, the Czech retail sector is concentrated heavily in Prague with around 900,000 m2 of shopping centre space. However, there is a different picture if the number of inhabitants is also taken into account. While Prague boasts around 700 m2 per 1000 inhabitants, Liberec has almost double the relative space with around 1400 m2. Mladá Boleslav also boasts a similar concentration. This disproportionate increase in space in smaller towns and cities has already led to tough cut-throat competition, a process which has not yet been concluded.

Some smaller cities are highly dependent on certain industries. International economic upturns and downturns have therefore a profound effect on the local labor market and can heighten the regional predatory competition in the retail sector.

Purchasing power still below the EU averagePurchasing power in the Czech Republic remains below the EU average, with consumers in Prague being able to afford around a quarter more than the national average. In the medium to long term, the process of convergence in the Czech economy will continue and the retail sector will benefit from increasing purchasing power.

Prague has a high density of retail space compared to other capital citiesCompared to other European capitals, Prague has a relatively high density of overall retail space with almost 800 m2 per 1000 inhabitants. That means the Czech capital has more space than, for example, Vienna or Munich, where the inhabitants enjoy substantially more purchasing power.

Slower expansion of space

SC space in Czech cities 2012

Prag Brno

Ostrava Plze

ňLib

erec

Olomou

c

České B

udějovic

e

SC sp

ace

in m

²

SC sp

ace

per 1

,000

inh.

0

200,000

400,000

600,000

800,000

1,000,000

0

250

500

750

1,000

1,250

1,500

SC space per 1,000 inh.SC space in m²

Source: IRG, BulwienGesa

Puchasing power in EUR/capita, 2012

0

1,000

6,000

7,000

8,000

9,000

10,000

5,000

4,000

3,000

2,000

České B

udějovic

e

Olomou

c

Libere

cPlze

ňBrno

Ostrava

Prague

Czech re

public

Source: MB Research

Purc

hasin

g po

wer

in E

UR/c

apita

EU 27-average: 15.594 EUR/capita

Retail space in m2, 2012 per 1000 inhabitantsBratislava 1,095Warsaw 863Prague 788Frankfurt/Main 740Zagreb 736Budapest 695Vienna 614Munich 464Bucharest 440Moscow 374Sofia 269Source: IRG, CBRE, BulwienGesa

Czech retail sector suffering from weak consumer spending



Despite the high degree of market saturation, new space is still coming onto the market, although this growth has slowed significantly. In Prague, the second expansion of the Cerny Most Shopping & Leisure Centers alone represents an increase of almost 40,000 m2 this year.

CBRE estimates the volume of older shopping center space – meaning space that came onto the market before 2002 – at almost one million m2. That means there is potential for renovations, while new developments will only come to the market selectively.

Rents relatively stableDepending on the location, performance and size of the shops, rents in the shopping centers in Prague are in a range of eight and 80 EUR/m2/month. Top shopping streets in Prague, which are increasingly attracting international luxury brands, demand 140 to 180 EUR/m2/month. Rent in the smaller cities is significantly lower.

As a rule, tenants still enjoy a good negotiating position for securing special concessions such as the acceptance of relocation costs, reduction or suspension of revenue-based rent, reduced service costs, etc. Landlords prefer to make these concessions before they accept a reduction in net rent.

Czech Republic still interesting for international retailersDespite weak domestic demand, below-EU-average purchasing power and high market saturation, the Czech Republic remains interesting for international retailers pursuing a medium- to long-term strategy. According to CBRE, Hervis, Intersport, Deichmann, Takko Fashion and several others have extension plans. However, there are also negative examples, like Giga Sport and Flugger which have abandoned the Czech market.

26

24

23

9

6

4

3

1

34

33

32

29

27

21

20

19

17

16

15

14

13

8

22

28

10

2

3130

25

Created on: 2/2013Sources: IRG, ESRI,BulwienGesa, RegioPlan, developers' figures

Shopping CentresPrague

LEGEND

Shopping Centre

GLA in m²

> 50,000 m²

20,001 – 50,000 m²

< 20,000 m²

State of SC

±0 2,5 51,25Kilometer

1 OC Letňany2 Nový Smíchov3 Centrum Chodov4 Metropole Zlicín5 Avion Shopping Park6 Europark Štěrboholy7 Galerie Harfa Shopping Center8 Rustonka (former Pražské strojírny)9 Arkády Pankrác10 Centrum Černý Most11 Centrum Černý Most (2nd extension)12 Palladium13 Galerie Butovice14 Nákupní centrum Eden15 OC Park Hostivař16 OC Šestka17 Nákupní centrum Stodůlky 18 Palác Flóra19 DBK Obchodní centrum20 Kotva Department Stores21 Novodvorská Plaza22 Shopping Center Lužiny 23 Palác Stromovka24 Centrum Krakov25 Bílá Labuť - Na Pořící26 Copa Centrum Národní27 Černá růže28 Na příkopĕ 14 (Highstreet)29 Galerie Fénix30 My Národní31 Millenium Plaza32 Shopping point Řepy33 Passage Myslbek34 OC Spektrum35 Palác Koruna36 Zlatý Anděl37 Slovanský Dům38 Diamant (Highstreet)39 Palác Metro

Existing SC

SC under construction

Planned SC

Prague

11

28

2639

37

31

2520

12

38

30

2735

36

393735

38

1218

7

5

Shopping centres Prague

26

24

23

9

7

6

54

3

1

34

33

32

29

27

21

20

19

18

17

16

15

14

13

8

22

28

10

2

3130

25

Created on: 2/2013Source: IRG, ESRIBulwienGesa, RegioPlan, developers' figures

Shopping Centres Prague

LEGEND

Shopping Centre

GLA in m²

> 50,000 m²

20,001 – 50,000 m²

< 20,000 m²

state of SC

0 2,5 51,25Kilometer


Existing SC

SC Under Construction

Planned SC

Prague

11

28

2639

37

31

2520

12

38

30

2735

36

393735

38

12

26

24

23

9

7

6

54

3

1

34

33

32

29

27

21

20

19

18

17

16

15

14

13

8

22

28

10

2

3130

25



LEGEND

Shopping Centre

GLA in m²

> 50,000 m²

20,001 – 50,000 m²

< 20,000 m²

state of SC



Existing SC


Planned SC

Prague

11

28

2639

37

31

2520

12

38

30

2735

36

393735

38

12

26

24

23

9

7

6

54

3

1

34

33

32

29

27

21

20

19

18

17

16

15

14

13

8

22

28

10

2

3130

25



LEGEND

Shopping Centre

GLA in m²

> 50,000 m²

20,001 – 50,000 m²

< 20,000 m²

state of SC



Existing SC


Planned SC

Prague

11

28

2639

37

31

2520

12

38

30

2735

36

393735

38

12

26

24

23

9

7

6

54

3

1

34

33

32

29

27

21

20

19

18

17

16

15

14

13

8

22

28

10

2

3130

25



LEGEND

Shopping Centre

GLA in m²

> 50,000 m²

20,001 – 50,000 m²

< 20,000 m²

state of SC



Existing SC


Planned SC

Prague

11

28

2639

37

31

2520

12

38

30

2735

36

393735

38

12

Created on: 2/2013, Source: IRG, ESRI BulwienGesa, RegioPlan, developers‘ figures

Selected retail developments in Prague at planning stage/under constructionShopping centre Gross lettable

area m (Planned)opening, status

Cerný Most Shopping & Leisure Center (2nd extension)

~ 39,800 2013, under construction

Centrum Krakov ~ 14,000 2013, under constructionNa příkopĕ 14/ Highstreet


Kaufhaus Diamant/ Highstreet


Copa Centrum Národní ~ 12,000 2014, under constructionPalác Stromovka ~ 15,000 2014/15,

under constructionSource: IRG, BulwienGesa, RegioPlan, Operator information


Bank Austria

Real EstateAnton Höller Tel: + 43 (0)50505-55980 [email protected]

Günter Hofbauer Tel: + 43 (0)50505-57488 [email protected]

Real Estate CEELukasz Motyl Tel: + 43 (0)50505-55142 [email protected]

UniCredit Bank Czech Republic

Real EstateTomas ProchazkaTel: + 42 (0)95596-1306 [email protected]

Bank Austria

Real Estate ResearchKarla SchestauberTel: + 43 (0)[email protected]

UniCredit Bank Czech Republic

Economic ResearchPatrik.Rozumbersky Tel: + 42 (0)[email protected]

ValuationDavid Dusek Tel: + 42 (0)95596-1953 [email protected]

Contacts:

Research and Valuation:

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