The building currently lies vacant, but there is no bar to the commencement of construction works as the investor already has the required permit in their hands. The reconstruction will be the third to have taken place in the street in the past decade. Kellner’s group wants to follow up on the success it enjoyed with the building at Pařížská 3. That investment involved a renovation which created a three-floor Prague store for French handbags, luggage and chic apparel brand Louis Vuitton. It amounts to the largest retail unit in the boulevard. PPF completed the project at the turn of last year and sold
the property to a Komerční banka property investment fund. The price of the transaction was not disclosed, but an indication of its very high level was indicated by the promised yield at which the fund made the acquisition. The return was pushed down to a meagre four percent which in Czech real estate equates to a record low.
“The rental payments made by the top outlets on this street have grown over the past 10 years by more than twice what
they were originally,” observed Tomáš Soukup, head of the retail office at consultancy JLL.