Share:
Galerie Butovice, shopping centre, exterior Galerie Butovice, shopping centre, exterior

Stories

Galerie Butovice

A redevelopment of the shopping center Galerie Butovice, improving the quality of catering and leisure in line with current market trends.

1 The Opportunity

Galerie Butovice was a 36,000 sq m shopping centre in Prague, which had been struggling since its opening in 2005. The most problematic period was 2013-2014 when main part of the first floor was closed.

The asset was bought by Cromwell Property Group in 2014 and Cushman & Wakefield was appointed for property management and leasing. The project needed significant redevelopment including layout changes, new vertical communication, extension of the F&B segment, tenant mix improvements and especially saturation of the first floor with very high vacancy. 

The market position of the shopping centre was very poor with very low demand from tenants. The performance of current tenants was average. Hypermarket Albert occupied 30% of GLA and represented 46% of rental income with clear strategy to downsize. For the Landlord, this situation represented a future that was either very problematic and risky or that had a huge potential for value-adding strategy if successful.  

 

Jan Cizek Jan Cizek

"Redevelopments of shopping centers and improving the quality of catering and leisure is a trend we see across the whole of Europe. The new Galerie Butovice was transformed exactly in this spirit and consolidated its concept of a comfortable shopping center."

- Jan Čížek

2 The Solution

Cushman & Wakefield was involved in the whole redevelopment since the very beginning including consultancy of the future layout, ERV, tenant mix and others.

Important part were our B2B marketing materials to present the future of the project, fully prepared by Cushman & Wakefield.

We negotiated a deal with KIKA for the extension of the centre by 15,000 sq m, prolongation of the hypermarket's contract, layout changes of 85% of the centre, new anchors including New Yorker or Lindex and 37 new tenants. Close cooperation between the client, property management, retail leasing team and client's project management team brought significant improvement of the KPI.

 

New marketing communication, new logo and design changed B2C communication resulting in turnovers increase.

 

3 The Result

After 4 years of cooperation the redevelopment is finalised and the client is in the exit phase of selling the asset. GLA of the shopping centre increased by 15,000 sq m, which along with other changes including mall turnover increase, rental income increase and occupancy increase resulted in 100% asset value increase.

 

In 2019 the asset was succesfully sold and Cushman & Wakefield's Investment team assisted the seller.

 

 

MEET THE TEAM

Related News

Euromoney Real Estate Award 2020
Euromoney 2020

Cushman & Wakefield Named by Euromoney the Best CRE Advisers and Consultants in CEE and Worldwide.

10/09/2020

Partner, promotions, Frederic Le Fichoux, Robert Bocker, Petr Landsinger
New Partners Appointments

Cushman & Wakefield, the leading global real estate services firm, promotes Frédéric Le Fichoux from the hospitality team to International Partner. Robert Bocker from the industrial agency team and Petr Landsinger from the industrial property management team are promoted to Partners.

03/08/2020

ctp park prague east nupaky, warehouse, logistic
XXXLutz

XLMX obchodní s.r.o. has leased 16,000 sq m of warehouse space in ctPark Prague East in Nupaky with a view to setting up a regional warehouse for XXXLutz.

15/07/2020

Industrial, auto manufacturing
Manufacturing Risk Index

The Czech Republic is the best manufacturing destination in Europe. It also has an excellent position for recovery after the coronavirus crisis.

02/07/2020

Michaela Sedlbauerova
Michaela Sedlbauerova

Michaela Šedlbauerová (née Vondrušová) was appointed the new Head of Marketing and Communications at Cushman & Wakefield, a leading real estate services firm.

18/06/2020

HOF awards, CIJ, statue
HOF Awards 2020

Cushman & Wakefield recognized as the Best Retail Real Estate Agency in CEE/SEE in HOF Awards 2020

08/06/2020

Workplace, office, people
Offices will survive the coronavirus but their role will change

Cushman & Wakefield conducted research into the attitudes of 40,000 respondents from all over the world before and during the coronavirus crisis.

02/06/2020

Stromovka Shopping Centre, Prague
Shopping Centres different and safer

Shopping centres in excess of 5,000 square metres opened to customers again on 11 May following almost two months of closure and much discussion and arguing. Cushman & Wakefield prepared 17 shopping centres under its management for reopening and offers a set of measures that will significantly improve safety for customers.

11/05/2020

Six Feet Office
Six Feet Office

The Six Feet Office concept offers rules and aids to enable and facilitate the observance of the safe six-feet distance for increased employee safety.

23/04/2020

Porto Carras Meliton Hotel
Technical Olympic Sells Porto Carras Grand Resort Greece

Cushman & Wakefield and Cushman & Wakefield Proprius have advised Technical Olympic on the sale of the Porto Carras Grand Resort for in excess of €200 million.

21/04/2020

Green Point office building Prague
Na Příkopě street, Prague
Country ranking based on the most expensive retail streets

Country Ranking Based On The Most Expensive Retail Streets

19/11/2019

MORE Insight

Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

After years of rapid and turbulent development, the CEE-6* hospitality markets were catching up with their western neighbours, in terms of both investment volumes and sophistication. 
Bořivoj Vokřínek • 07/04/2020
Hotel Prague
MarketBeat

Czech Republic MarketBeat Hospitality

Cushman & Wakefield MarketBeat Hospitality report analyse quarterly commercial property activity across hotel real estate sector in Prague, Czech Republic including supply, demand and pricing trends at the market.

Bořivoj Vokřínek • 01/03/2020
man in suit playing Jenga
Research

Monitoring Recent Development

Cushman & Wakefield continuously monitors how recent developments affect the commercial real estate market.
Marie Baláčová • 26/03/2020
Prague, Czech Republic
Insights • Economy

COVID-19 Impacts on Czech Real Estate

A brief weekly update on the impacts of COVID-19 pandemic on commercial real estate in Czech Republic.
Marie Baláčová • 27/10/2020
Czech Republic, Prague, Old Town Square, High Street
MarketBeat

Czech Republic MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly Czech Republic commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová • 31/07/2020
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

After years of rapid and turbulent development, the CEE-6* hospitality markets were catching up with their western neighbours, in terms of both investment volumes and sophistication. 
Bořivoj Vokřínek • 07/04/2020
man in suit playing Jenga
Research

Monitoring Recent Development

Cushman & Wakefield continuously monitors how recent developments affect the commercial real estate market.
Marie Baláčová • 26/03/2020
Hotel Prague
MarketBeat

Czech Republic MarketBeat Hospitality

Cushman & Wakefield MarketBeat Hospitality report analyse quarterly commercial property activity across hotel real estate sector in Prague, Czech Republic including supply, demand and pricing trends at the market.

Bořivoj Vokřínek • 01/03/2020
Looking up inside a lit building
Research

Czech Republic Fresh Data

All the latest data for the industrial, office and investment property markets in Czech Republic on one page. 
Marie Baláčová • 03/01/2019

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.