The sale of Palac Flora has finally gone through, with Atrium European Real Estate agreeing to pay €191m for the property, which sits on top of the Flora metro station in Prague. The 37,600 sqm property (20,000 sqm of which is retail, the rest offices) was sold by AFI Europe and Avestus. It’s interesting to note how the geography of debt is becoming an issue in these days of currency nervousness:
As a result of the acquisition the value of Atrium’s income producing portfolio increases to ca. €2.0 billion, of which 75% by value is situated in ‘A-‘ or above rated countries. Further, the Czech Republic, the highest rated country in Atrium’s markets, at A+ /Positive, now accounts for around 23% of the Company’s total portfolio by value; meaning it becomes Atrium’s second largest market after Poland at 46% (A- Stable). In addition, Atrium’s exposure to the Czech Republic’s largest two cities, Prague and Brno, has increased to 68% of the Czech portfolio.