Allianz Real Estate has made its second property deal in the Czech Republic, investing €110m into two office buildings.
The €60bn real estate manager has acquired the Trimaran and Element buildings in Prague from the Austrian developer S+B Gruppe.
The two assets, which cover 28,000sqm in total, are located in the Pankrác office submarket.
The deal is firm’s first office equity investment in the Czech Republic. In October last year, Allianz part-refinanced a €160m logistics portfolio for CTP Property.
Thomas Villadsen, the head of Austria and CEE, Allianz Real Estate, said: “The economy in the Czech Republic, and especially Prague, has shown positive momentum in recent years and the outlook remains promising in our view.”
The office market is favourable, with declining vacancy rates, strong tenant demand, stable prime rents and decreasing net initial yield, particularly in the Pankrác submarket, Villadsen said.
“We already have in place a number of long-term tenants and we firmly expect these new build, high specification quality assets to attract strong demand from businesses.”
Annette Kröger, the CEO for north and central Europe at Allianz Real Estate, said: “I’m delighted that we can announce our first equity deal in Prague as we build out our Central and Eastern Europe presence and further diversify our allocation in Europe.
“Being closer to the market through our Vienna office has been key to realising this transaction and we are focused on capitalising with additional deals in the Czech Republic and the wider region in 2019.”
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