Czech real estate group Ceskomoravská Nemovitostní (CMN) has become the new majority owner of the premium office complex Churchill Square in Prague.
For CZK 1 bn (€41 mln), it has upped its shareholding from 50% to 75% and plans to buy the remaining 25% by the end of 2024 from the Lebanese investment group Corporate Finance House Group (CFH).
Completed by Penta Real Estate, the Churchill Square complex is home to 2,000 people and prominent tenants like consulting company Deloitte and betting group Fortuna. With 100% occupancy based on long-term leases, this acquisition adds a stable and valuable asset to CMN's portfolio.
CMN and CFH originally purchased the property from the Penta Group in 2020, paying CZK 4 bn (€163.9 mln) and divided the asset in half between them.
Already prized for its location and prestige, Churchill Square gained even more luster in 2021 thanks to the new underpass under Prague's central station, improving pedestrian access and further cementing the complex's value.
CMN co-owner Josef Eim said: ‘The transaction is part of the agreement that we concluded with CFH three years ago when establishing a joint venture in connection with the purchase of Churchill Square from developer Penta Real Estate. "We expect the Czech real estate market to recover as interest rates fall. We are therefore already actively evaluating potential acquisition opportunities. In Prague, which is in great demand among creditworthy tenants from multinational companies, we want to continue to buy top-class office buildings.’
With this acquisition, CMN has solidified its position as one of Prague's top three owners of premium office buildings. Besides completing control of Churchill Square by acquiring the remaining 25% in 2024, the company is also actively pursuing further acquisitions of high-quality properties in Prague.
