CA Immo records strong tenant demand for its Prague office buildings. With two new leases signed in the newly built Mississippi House and Missouri Park office buildings in the River City Prague campus, only 40% of the office space in these buildings remains available – and letters of intent have been signed with three additional tenants who will potentially lease 30% of the total office space. Construction of Mississippi House and Missouri Park was completed in July 2021. The properties offer a total of 20,750 sqm of lettable area and are located in one of the most sought-after office localities in Prague - Karlín. During the first nine months of 2021, CA Immo closed 15 lease transactions in total, representing nearly 18,500 sqm of modern office space in its 7 office properties in Prague.
Václav Jonáš, Managing Director of CA Immo Prague, commented: “Given the uncertainty in the office market in 2020 and the first half of 2021, we are positive that office tenants continue to pursue planned activities and in many cases expand their office space significantly. From our point of view, the Prague market remains strong and stable, which is confirmed by several recent successfully closed transactions during the leasing of buildings from the CA Immo Czech Republic portfolio. The leasing success of Mississippi House and Missouri Park in particular shows that in the post-COVID-19 era, the quality of office space will become more important than ever. High-quality, well-located, amenity-rich office spaces where people love to work and that encourage in-office attendance, such as our River City Prague, are the ones companies will search for.”
Mississippi House and Missouri Park will welcome two new tenants: Pure Storage will be expanding its rental space for an additional 3,200 sqm within the River City Prague campus, and Novo Nordisk, who are newly moving to the sought-after Karlín district. The first tenants, ADASTRA, Allen & Overy and BATIST Medical Holding, already moved into the modern office environment with a turn-key fit-out delivered by CA Immo. All new tenants will be moving in during the second and third quarter of 2022.
During the first nine months of 2021, CA Immo closed in total 15 lease transactions representing nearly 18,500 m2 of modern office space in its 7 office projects in Prague. Amongst the biggest transaction recently closed by CA Immo were the extensions of the lease agreements by Ford and Procter & Gamble in Nile House. Nile House, an award-winning architectural structure holding a LEED Gold green certification, is part of the River City Prague campus.
Prague is one of CA Immo’s long-standing core markets. The investments in the Czech portfolio of the company include 5 buildings of the River City Prague (Danube House, Nile House, Amazon Court, Mississippi House and Missouri Park) in Prague 8 – Karlín, Kavčí Hory Office Park is located in Prague 4 – Pankrác and Visionary in Prague 7 – Holešovice. As of 30 June 2021, the total area of assets included in CA Immo’s portfolio in Prague amounts approximately 130,000 sqm and their book value (excluding Mississippi House and Missouri Park, which has been completed in July 2021), is about € 390 mln (around 8% of CA Immo’s total portfolio by book value).