Prague-based real estate company Ceskomoravská nemovitostní (CMN) now fully owns the Churchill Square office building overlooking Prague's main train station.
The company purchased the remaining 50% stake from its Lebanese partner, CFH, completing a deal initiated in late 2020 when they jointly acquired the property from Penta Real Estate. The deal was the biggest transaction on the office building market in the Czech Republic at the time.
CMN's acquisition of the remaining Churchill Square stake involved a €19 mln cash payment and the assumption of €24 mln in existing debt (25% of the original loan used to purchase the building). This translates to a total transaction value of €170 mln, or approximately CZK 4.3 bn at current exchange rates, slightly exceeding the CZK 4 bn initial purchase price.
CMN’s vice chairman, Josef Eim, commented: ‘We are financing the acquisition through a combination of our own cash, corporate bonds, and bank loans. Churchill is a strategic and long-term investment for us. We don’t have any exit plans in the short or medium term.’
This acquisition highlights a trend of domestic investors capitalizing on reduced foreign investment to secure prime Czech real estate.
