The AFI Palác in the Czech Republic Sold for €83 Million

The AFI Palác shopping center in Pardubice has changed hands in a deal worth €83 million ($103 million). The purchasing party is Atrium European Real Estate Limited.

Atrium is a firm that owns, develops and operates
retail real estate and shopping malls across the Central and Eastern
regions of Europe. They stated that they financed the deal with
existing cash resources. The seller is AFI Europe N.V.

A previous deal between the same two companies in 2011 saw Atrium buy
the Palác Flora development off AFI Europe.

The company advising Atrium on the deal was Cushman & Wakefield.
The firm’s Alexander Rafajlovic pointed out in a press release that
the purchase represented the “positive shift in investor sentiment”
in relation to established malls in the regional cities of Central
Europe.

Following
this purchase, property in the Czech Republic now makes up more than
19% of the Atrium income producing portfolio, in terms of market
value. 77% of their developments are in countries which have a
sovereign rating of at least A-.

Open
Since 2008

The
AFI Palác Pardubice shopping complex was opened in 2008. It contains
20,900m²
of retail gross leasing area which are spread across four levels. The
bottom two floors are given over entirely to retail units, while a
Cinema City and a conference center make up one of the other floors.
There are spaces for over 500 cars in the center as well.

There
is currently a 96.4% occupancy rate and some of the big name tenants
include Intersport, New Yorker, H&M, Sephora and Lindex.

The
city of Pardubice is the capital of the region and currently the 10^th
biggest in the country. It has a population of 90,000 but the
shopping center has a catchment area of over 200,000. The AFI Palác
is the only modern shopping center in the region and is conveniently
located close to the bus station and the train station, as well as
being at the intersection of 4 important roads.