Erik Dempsey, our partner in the Czech Republic, is a co-director of Property in Prague and lives and works in the Czech capital. Erik, who hails from the US, carries out extensive research and analysis on the Czech property market and maintains the biggest and most comprehensive Czech property database in the country. He also knows a great deal when he sees one.

Like all deal finders, we gave Erik the elevator test on the Avenium development. Could he convince us in a very short time that this was a great deal?

Erik, tell us what's the big selling point on this deal?

Let me tell you that this development will benefit from the huge J&T Tower City complex which is being built right next to it on the two blocks that come between Avenium and the Vltava river water front. We just did a great deal called the Old Brewery in the same area and we said that it will be hard to replicate. This deal was not only a sell out but was also hugely oversubscribed, Now It surprises me a bit that we have in fact found something which comes not only quite close to it in features and discount but a development which is closer to the centre than Old Brewery. It does not get any better than this.

So we found something against our expectations, something as good as The Old Brewery. That's quite remarkable - what makes this one so outstanding then?

As always, this is due to a combination of factors but there is one quite outstanding reason.

This development will be located right next to the J&T Tower City development which is a 95,000 sqm mixed use development comprising residential and commercial features. What's great about this development is that its located on the Vltava water front at the foot of the Libeňský Most bridge to Prague. And this is no ordinary area. Holešovice is now perhaps the fastest growing area of the city very close to the centre (Only last year, we saw property price growth of around 20%). The payment terms of 15% and 85% are quite appealing. In addition, this deal is being offered by at least 18% below market price, which is quite remarkable in a new business area. This is on top of prices which are just about right to begin with in any case.

The units are being offered through Property Secrets at CZK 43,000 sqm, and Colliers has valued them at CZK 55,000 / sqm - that is 18% more!

It has every reason to buy that The Old Brewery had plus more. It is closer to the City Centre and the Libeňský Most Bridge.

This makes it a solid value for money investment.

A solid value for money is quite definite. Why do you call this a new business area? What is so good about it?

Well, developments such as J&T Tower and Lighthouse Tower, both located within two blocks from Avenium have between them more than 120,000 sqm office and retail space. This is quite a lot of business space in a highly concentrated area of Prague 7 which is rapidly growing and is very close to the centre.

A new business area next to the centre sounds fantastic. So who will be buying in this development?

For a start, well-paid professionals - which are plenty and growing fast in Prague. These will perhaps be middle level managers - people who are either working here in Prague 7 in next door offices or perhaps doing a 5 minute commute to Prague 1 or 2 or Karlin for that matter. Now, for people working in Karlin- which is extremely close to this development being just across the river - this is an extremely attractive proposition; it only takes about 3 minutes once you are on the metro to reach there. So a lot of people who want to live close to their work place will find this ideal. You simply cannot find this kind of area in Karlin. There are nice areas in Karlin but prices over there are around CZK 75,000 - CZK 80,000 per sqm. If you cannot afford these prices - which most professionals indeed can't - you come to Holešovice. Not only that, this area is developing as a hip and funky area with its bars and restaurants thus raising its appeal to the young and trendy.

What is there for the the young professionals and trendy residents to enjoy in this development?

There are plenty of amenities on offer. The courtyard is pretty good with a garden of 1,000 sqm for relaxing either on your own or with your family. There will be a selection of small shops and a restaurant within the development complex. In addition, the development offers a fitness centre free to its residents. This is currently a very desirable feature in Prague. Not only you save around a CZK 1,000 per month in membership costs elsewhere but also it has the convenience of being in-house. The health industry in Prague is quite big and this is an extremely desirable feature also with regard to rental value of units in this development.

» Click here to find out more about Avenium Residence