Korean capital boosts Czech transaction volumes
Korean investors have helped real estate transaction volumes in the Czech Republic exceed €1 billion in the first quarter 2019.
Two large transactions — the sale of the Waltrovkaoffice scheme to Korean Hanwha Investment & Securities for €255 million and the sale of the Intercontinental hotel to the Czech R2G group for €225 million — boosted Czech numbers in the first quarter, according to Colliers International’s Market Overview for the Czech Republic for Q1 2019. The consultancy also says the inflow of Korean investors, which started at the end of last year, contributed to further compression of prime office yields, which now sit at 4.5 percent.
The purchase of Waltrovka positioned Korean investors into second place in the Czech market, with a 24 percent market share. The traditionally strong German investors were third with 10 percent. Local investors continued to dominate the market, with a 35 percent market share.
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