Immofinanz has sold the Valdek office building in Prague to a Danish investor. The sale price was kept confidential but the parties said it exceeded the book value determined by external appraisals. The sale forms part of the optimisation of Immofinanz's property portfolio,
Immofinanz has sold the Valdek office building in Prague to a Danish investor. The sale price was kept confidential but the parties said it exceeded the book value determined by external appraisals. The sale forms part of the optimisation of Immofinanz's property portfolio,
The Valdek office building is situated at a prime location on the Jugoslavska/Namesti Miru in Prague II (Vinohrady). It was built in 1938 and fully renovated in the late 1990s. The Valdek comprises more than 5,800 m2 of space, which is let primarily to international companies such as major banks and insurance firms.
The Czech property market is concentrated in Prague and has recently shown stable development with a slight upward trend. This reflects the low volume of project completions. The economic crisis brought a clear differentiation between primary and secondary locations, which is expected to result in constant rents and a stable demand for office space up to the start of recovery in all segments of the market. Returns on top objects at prime locations are currently less than 7%.
Immofinanz CEO Eduard Zehetner said, 'This transaction demonstrates that it is possible to sell properties at prices that exceed book value and, in turn, confirms the NAV. The Valdek was sold for strategic reasons related to the portfolio optimization because it is smaller than the minimum size defined by our corporate guidelines.'
