Invesco Real Estate (IRE) announced on Friday that it has sold a mixed-use property in Prague for EUR 29.3 mln as part of its divestment strategy for ZEI, its first dedicated fund for the Central European market. The property has been purchased by the CPI Group.

Invesco Real Estate (IRE) announced on Friday that it has sold a mixed-use property in Prague for EUR 29.3 mln as part of its divestment strategy for ZEI, its first dedicated fund for the Central European market. The property has been purchased by the CPI Group.

The Longin Business Center (LBC), which was built in 1999 and is 96% occupied, provides 10,550 m2 of office space including a small hotel facility with 55 rooms. The property benefits from a favourable location and ease of access within a quiet area of Prague on the fringes of the city centre in Prague 2.

Invesco, a global cross-border property investment manager, launched ZEI in October 1998 as the first vehicle offering German institutional investors the opportunity to invest in real estate in Central Europe. It was also IRE's first fund with a dedicated allocation to Central Europe.

The fund has a core-plus strategy focussed on investing in the three main property sectors in the Czech Republic, Poland and Hungary and has an expected 12-year life span. Following the sale of LBC, the fund now has two remaining properties. IRE launched its second Central European fund (CEII fund) in 2004 with an extended focus to cover the Eastern European markets. Both ZEI and CEII fund are closed to new investors.

Doris Pittlinger, head of European Fund Management at IRE commented: 'We are pleased to have concluded the sale of this asset for our first fund, which has been a successful strategy for our clients who are investing with us into this region. Having a team on the ground within the region, who fully understand the marketplace, does place us at an advantage when investing and divesting locally.'