Bluehouse Sold Korso Karviná Shopping Centre to Conseq
Bluehouse is a private equity real estate investment and asset management firm focused on Central and Southeastern Europe. It manages capital across multiple funds, investing on behalf of a diverse investor base. Since its founding in 2004, it has performed more than 50 property transactions, constantly expanding its portfolio by investing in opportunities with attractive risk adjusted returns, while in parallel targeting exits for mature assets.
Iain Fanthorpe, Bluehouse: “The sale of Korso Karvina was the result of accomplishing the objectives of our business plan which was to build upon the shopping centre’s strong fundamentals and reposition it as a modern retail destination suitable for longer term investors seeking well performing and stabilized assets. We are proud to hand over Korso Karvina to its new owners and on to its next chapter.”
Bluehouse bought Korso Karviná in 2017. During that acquisition as well as during the current disposal, Cushman & Wakefield was its advisor. Over the last three years, a successful improvement in the tenant mix and increase in the centre’s performance took place. It was completely redeveloped and revitalised, including reconstruction of the Albert hypermarket and most tenants’ shops.
Michal Soták, Partner and Head of the Capital Markets team in the Czech Republic at Cushman & Wakefield: “Bluehouse bought Korso Karviná shopping centre with the intention to maximally utilize its potential and significantly increase its value. Thanks to quality revitalisation and a new letting strategy, it succeeded, the sale of the centre now being another natural step of the investor’s plan. The transaction proves the great interest in all types of commercial properties on the very stable Czech market, where investors would like to apply their accumulated capital. After a period of uncertainty caused by the covid-19 crisis, they now return to retail projects with optimism.”
Together with Cushman & Wakefield who acted as commercial advisor, the CMS legal firm and financial advisor ASB participated in the transaction.
The buyer is Conseq Realitní, open-end fund. Conseq is an investment manager with more than 27 years of history in the Czech capital market. In addition to managing institutional portfolios, it has been managing and administering investment funds for 21 years and providing other services to retail and institutional investors. In these areas, Conseq has a significant market share and has already gained the trust of more than 500,000 clients. With a volume of managed assets of over CZK 80 billion (according to AKAT CR data), the Conseq Group is the largest independent investment manager in the Czech Republic.
Vladan Kubovec, Portfolio Manager, Conseq Realitní: “Conseq considers investing in retail asset from long term perspective and the acquired shopping center Korso Karviná represents an excellent addition to the fund Conseq Realitní. Korso Karviná is the first shopping center in our portfolio. Together with our advisors we have carefully analyzed many investment opportunities, where the center refurbished by Bluehouse was selected as the best choice because of location and tenant mix. This relatively quick transaction improves the asset quality of Conseq Realitní.”
CBRE advised the buyer during the acquisition, Eversheds Sutherland provided legal services and E&Y financial and tax services.
Vítězslav Doležal, Director, Investment Properties, CBRE: „We are pleased to be able to introduce the reputable Czech investor to Bluehouse in this off-market transaction. Conseq correctly predicts that the retail market will recover again after the economy opens up. Korso Karviná is a good example of resistant retail asset, as it is easily accessible to its customers and offers a wide range of goods and services that are constantly in demand.“
This June, RevPAR (revenue per available room) at Prague hotels was five times higher than last year, climbing to EUR 73.5. This is the highest increase in Europe and just 19% lower than in the pre-crisis year of 2019.
Cushman & Wakefield, the leading global real estate services firm, promotes Petr Dolejš from the Asset Services team and Petr Markvart from the Office team to Partners.
As many as 15 new brands arrived on the Czech retail market in the first six months of this year. Compared with the first halves of the past few years, this is the highest number since 2018, when multiple newcomers were attracted as a result of an outlet centre opening near Prague’s airport.
Global real estate services firm Cushman & Wakefield was named the Agent of the Year 2022 in Central and Eastern Europe at the prestigious CEE Quality Awards ceremony. At the event held in Warsaw on 29 June 2022, its CEE Head Jonathan Hallett was also named the Industry Professional of the Year 2022.
Desenio Group, a leading European wall art provider, leased nearly 18.5 thousand square metres of industrial-logistics space in CTPark Bor.
In the comparison of 26 European cities, Prague placed the second in the CEE region in terms of the price of fitting out an office. Still, with EUR 1,037 being the average cost per square metre in Prague, it is half of what is standard in top German cities or in the UK where the median cost exceeds EUR 2,000.