German fund manager KGAL has made its first investment in the Czech Republic, with the acquisition of the DRN office building.
KGAL said it bought the 12,595sqm office asset in Prague for a pan-European special real estate Alternative Investment Fund.
The fund now holds properties in Germany, Austria, Ireland, Hungary, the Netherlands, Poland and the Czech Republic.
André Zücker, managing director for real estate at KGAL Investment Management, said: “The DRN complex is a unique gem of commercial real estate. It combines first-class workspace with superb architecture that blends the traditional with the modern.”
The building incorporates parts of the original Schönkirchovský Palace which dates from 1734 with an interconnecting new building which was completed last year provides office space and eating and drinking amenities.
KGAL said the property is almost fully let.