Czech commercial property investment increased by 4 per cent per year to €268m in the first quarter of the year, according to property consulting company DTZ. Full-year investments are projected to exceed €1bn.
Investment in office space made up almost half of the deals (49 per cent), retail deals came in next at 27 per cent, and investment in multipurpose facilities accounted for 22 per cent of the total.
The largest transaction was the acquisition by Meyer Bergman European Retail Partners I of Fashion Arena Outlet Centrum for €71.5m. The second-biggest deal in Q1 was the purchase of Praha City Centre by Tristan Capital Partners.
Other major transactions in the first three months of the year were the sale of the multi-use building City Palais, and the office building Qubix. Both of them are located in Prague.
Increased investor interest reduced annual revenue for the best quality property. In the office and warehouse sectors, it dropped by 0.25 per cent to 6 and 7.75 per cent, respectively. For high street shops, the decrease was half a percentage point to 5.5 per cent.
The annual revenue is expected to stop falling and stabilise for the rest of the year, according to DTZ. The consulting company estimates a 5 per cent growth in investments in 2014 and an annual increase of 7 per cent next year.
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