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August 22nd, 2008

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LEASE Quinlan Private Golub recently signed lease agreements with two major tenants in its newest development, Explora Business Centre Prague. The agreements, which were led by real estate advisers Jones Lang LaSalle, are with Japanese engine and automobile manufacturer, Honda, and Czech residential developer, Trigema a.s. These companies will be in Jupiter Building, Phase I of the development, which offers some 21,100 square meters of space for lease.

TRIANON Hochtief Development Czech Republic s.r.o.’s latest project, Trianon, it set to open at the beginning of next year. Construction of the administrative and commercial center in Prague 4, which will complement Budějovické Square, has moved to its final phase, developers announced. Trianon will offer 18,500 square meters of office space. On the ground floor of the building there will be shops and restaurants. The owner of Trianon is the investment fund Union Investment Real Estate AG.

AWARDS The “Best of Realty” competition celebrates its 10th anniversary this year. The competition is open to all participants who will enter their buildings, developed in the Czech Republic. The deadline is Sept. 5. The awards ceremony will be held at Národní dům in Vinohrady, Nov. 19. The “Best of Realty 2008” competitors are invited to fill out an electronic application with a completed nomination form, which can be found at Bestofrealty.cz and Bestofrealty.com.

OUTLOOK While Orco Property Group recently revealed that its share price has fallen substantially, the company has an optimistic outlook on 2008, noting that its investment properties are continuing to perform well. Orco’s main office markets in Prague and Berlin are showing decreased vacancies and a slight increase in rent. The company also reports that its residential development activity will see increased deliveries during the second semester.

LIBRARY Construction of the new National Technical Library, which is being built on an 11,740 -square- meter plot and will store up to 1 million volumes of technical publications, is in progress: Installation of the external cladding is being finished, plumbing is being installed and the first tests of technologies are being performed. The project investor is the State Technical Library. The developer is Sekyra Group, and the general designer is Helika. The architect is the Projektil architects. The project is valued at 2 billion Kč.

SOLD Orco Property Group announced that 63 percent of all units in its residential project, Citadela, in Prague 4 were sold shortly after the launch of sale in April. The average price of a unit is around 2,100 euros per square meter. The project is scheduled to be finished by next summer. When it is done, there will be 100 units, ranging between 36 and 90 square meters. Each apartment comes with a balcony, terrace or front garden, depending on its position. Parking places and cellars are situated in two underground floors.

REPORT DTZ’s Q1 2008 European Quarterly report shows that the commercial property investment market across Central and Eastern Europe and Russia continued to grow in 2007. A slowing global economy, increasing concerns over pricing and the tightening in liquidity could cause the CEE and Russian investment markets to slow somewhat in the second half of 2008, the data shows. And already in the first quarter of this year, investment volumes have fallen noticeably in the Czech Republic and Hungary.

UŽICE ProLogis signed a lease agreement with logistics operator Wincanton Česká republika for a 2,400-square-meter space in Building 1 at ProLogis Park Užice. The park consists of two buildings and more than 50,000 square meters of warehouse and office space with two additional facilities totaling 46,000 square meters under construction. When fully developed, ProLogis Park Užice will comprise seven buildings totaling more than 168,000 square meters of industrial space.

SHOPPING The current boom in shopping centers in Europe will continue in the future, according to the European Shopping Centres Report released by Cushman & Wakefield. In 2008 and 2009, the shopping center surface area will increase 22 million square meters, the report shows. In addition, new construction in the Czech Republic is estimated at 340,000 square meters. This year, some 14 shopping centers with a total area of 250,000 square meters will open in the Czech Republic.

WINNER Jones Lang LaSalle Incorporated, an integrated financial and professional services firm specializing in real estate, has been selected as the winner of the first annual Sustainable Cities Award, sponsored by The Financial Times and the Urban Land Institute. The Sustainable Cities Awards honor global examples of innovative programs that advance the application of sustainability principles in the real estate industry. Jones Lang LaSalle was one of two winners in its category, Corporate Strategic programs, for its Portfolio Sustainability Management Program.

ORCHARD Construction of the 12,000-square-meter five-story office building of the Orchard complex on Hornopolní street in Ostrava has been completed, and the developer, Red Group, says it is now accepting new tenants. The entire second floor of building two is leased to TietoEnator and a substantial amount of office space is currently under negotiations. TietoEnator is also on the tenant list of the first building, where other significant tenant names include HSBC, Home Credit, Immorent and Top Office.

HOUSING DTZ Consulting & Research predicts that, in the short term, housing price growth will be most significant in Ústí nad Labem, 60 percent, followed by České Budějovice at 50 percent and finally Plzeň at 20 percent. The data reveals that the change in housing prices can be explained primarily by the change in GDP per capita and the unemployment rate.

GLOBUS ProLogis announced it has signed a lease agreement for an additional 5,220 square meters in ProLogis Park Prague–Jirny with Globus, one of the largest hypermarket operators in the Czech Republic. ProLogis Park Prague–+Jirny is a modern distribution park that currently consists of six buildings totaling more than 192,000 square meters of warehouse and office space. When fully developed, the park will comprise 13 buildings totaling more than 345,000 square meters.

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