Invesco Real Estate has sold a mixed-use asset in the capital of the Czech Republic at a premium exceeding 30% over its original purchase price on behalf of a German separate account mandate.
Invesco said Riverview, located in the Smíchov, Prague 5 submarket, was sold at the undisclosed premium figure following a dedicated asset management approach.
Built in 2014, the 7,650sqm office-led property includes 890sqm of retail space. As reported in 2014, Invesco acquired the Riverview building in the Prague 5 – Smíchov business district from Skanska Commercial Development Europe for €20m.
During the holding period, Invesco enhanced the asset’s value through several initiatives, including a €3.5m capital investment programme and a 10-year lease extension.
Invesco said Riverview has been sold on behalf of the separate account mandate, which has a core/core-plus pan-European strategy focused on generating stable income from a diversified portfolio of prime assets.
Tomas Picha, senior director, transactions, Central and Eastern Europe, Invesco Real Estate, said: “Riverview is a great example of how Invesco selects and manages assets with a view to delivering returns for our clients.
“The exit price reflects the attractiveness of the underlying asset, the high liquidity of the local Prague office market and the strength of the wider Czech real estate sector.”
Michael Berchtold, director of fund management at Invesco Real Estate, said: “We continue to take an active approach to asset management and asset sales to maximise fund performance, particularly as we look to recycle capital into new acquisition opportunities in a disciplined way.
“Our separate account strategies are a core strength of Invesco Real Estate’s proposition in Europe, and we retain a strong ambition to further expand our institutional client portfolio.”
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