Germany’s Allianz Real Estate has acquired two office developments in Prague from Austrian developer S+B Gruppe for a total €110 mln.
The two assets, Trimaran and Element, cover 28,000 m2 in total and are located in Prague’s Pankrác office submarket with ‘excellent access to public and private transportation and a good supply of cafes and restaurants in the neighbouring Arcady Pankrác shopping centre’, Allianz RE said.
The transaction represents Allianz RE’s first office investment in the Czech Republic and its second overall deal in the country. In October 2017, the company part-refinanced a €160 mln logistics portfolio for CTP Property, one of the leading logistics companies in the region.
Thomas Villadsen, head of Austria and CEE at Allianz Real Estate, commented: ‘The Trimaran and Element assets represent a great opportunity to invest into Prague. The economy in the Czech Republic, and especially Prague, has shown positive momentum in recent years and the outlook remains promising in our view.’
He added: ‘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. 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.’
Allianz Real Estate, which manages €60 bn of real estate assets for the Allianz Group, carried out the transaction on behalf of several Allianz insurance companies.
