Global investment manager Invesco Real Estate, acting for one of its funds, has acquired an office development in Prague from Skanska Commercial Development Europe for €20 mln.

Global investment manager Invesco Real Estate, acting for one of its funds, has acquired an office development in Prague from Skanska Commercial Development Europe for €20 mln.

The Riverview building is situated in an evolving business district Prague 5 - Smichov. It offers 7,000 m2 of leasable office space out of which 90% is leased to a pharmaceutical company MSD.

Invesco Real Estate was advised by Colliers International, whereas Jones Lang LaSalle acted as the exclusive sale agent of Skanska Property Czech Republic. Legal advisors in the transaction were Wilson and Partners for the purchaser and Dentons for the seller.

The project is within walking distance to the Andìl metro station and the Na Knížecí bus stop as well as a wide range of services and amenities. The project is already 90% leased to the MSD pharmaceutical company, which plans to establish an IT Global Innovation Center at the site. The company is scheduled to relocate to the building in January 2015.

Designed by Swedish architecture studio Tengbom, the seven-story building offers approximately 7,000 sqm of office space and aims to secure LEED Gold certification. The top floors will offer terraces with stunning views of Vyšehrad and Prague Castle.

Tomas Picha, Director – Transactions, CEE at Invesco Real Estate comments, 'We are delighted to have secured this forward purchase investment opportunity in Prague’s Andìl region for one of our German pension fund separate account clients. Riverview fits our client’s investment mandate well given its strong real estate fundamentals including being let on a long-term lease with a good covenant. It is thanks to our on-the-ground specialists’ relationships within the local marketplace that we were able to secure this transaction already in the process of construction.'