An investment fund of Mint Investments group has acquired the 35,000 sqm Coral Office Park above the Nové Butovice metro station at an acquisition yield of over 6.5%. The building is currently 95% leased to strong tenants such as LeasePlan, Kühne & Nagel, New Work and Škoda Transportation at rents that are below €14. Mint Investments partner Lukáš Schirl says low vacancy rates across Prague plus ongoing improvements of the area around the Nové Butovice station make a good case for value growth. “In the coming years, we plan to invest in changing all the primary equipment in the building and push it forward technologically to match current trends and demands for user comfort and sustainability,” said Schirl. Completed in 2008, Coral Office Park is divided into four buildings that allow its tenants to maintain their own corporate identity. A fifth, one-level building serves as a restaurant. Cushman & Wakefield, Clifford Chance, TPA and Arcadis acted for Mint Investments. The financing bank in the transaction was Raiffeisenbank with White & Case as their counsel.
The average mortgage rate for loans issued in January rose nearly 0.5% in the month of January to 3.43%. That’s a record increase for one month that’s struck fear into the hearts of anyone whose business model relies on an overheated residential market. The Czech National Bank can raise interest rates at the snap of a finger, but there’s a lag before that takes hold in the official mortgage rate statistics. So for example, the CNB hiked the base rate to 3.75% in January, leading banks to start asking for more than 5%. But with lots of mortgage deals still in the pipeline at lower rates, it will take time for +5% loans to become the norm. But rise they will, and the mortgage market, it will fall, according to Jiří Sýkora of Fincetrum & Swiss Life Select. “The mortgage market is cooling significantly and it will continue to cool in the coming months,” he told Seznam Zprávy.
ISMM Production and Business Cooperation has acquired the Bosch Termotechnika industrial manufacturing facility in Město Albrechtice. Colliers advised the vendor in the sale of the facility, which comprises 15 manufacturing and storage buildings totaling 14,000 sqm of space. Konstantin Cordery of Colliers said the property is located on a 4 ha plot that was used in the past for the production of hot water boilers, including small components and electronics. At one time, it employed over 400 people. Bosch was represented by the law firm Schoenherr. The buyer was ISMM Production and Business Cooperation, a Czech manufacturing company that supplies manufacturers of agricultural machinery.
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