Invesco Real Estate (IRE) has acquired the Stara Celnice property in the central business district of Prague in the first sizeable office transaction in the Czech capital so far this year.
Invesco Real Estate (IRE) has acquired the Stara Celnice property in the central business district of Prague in the first sizeable office transaction in the Czech capital so far this year.
The investment volume was €38 mln.
IRE carried out the transaction on behalf of the iii-BVK Europa-Immobilien-Spezialfonds, an institutional real estate vehicle which IRE has managed since 2000 on behalf of German pension fund Bayerische Versorgungskammer (BVK).
Stara Celnice is a 10,370 m2 property consisting of both office and retail space, with the main tenants being Allen & Overy, Chartis Insurance and Reader’s Digest within the office segment and Billa grocery store anchoring the retail space.
The property is situated within the heart of the historical district next to the Namesti republiky (Republic Square) and its metro station.
Bettina Knirsch, IRE’s director of fund management, said: 'Stara Celnice is regarded as one of Prague CBD’s top eight office properties due to its prime location at the Republic Square, its class A institutional quality offices, which has attracted a mix of strong international tenants, and its aesthetically-pleasing design. Assets like this rarely come onto the market, so we are delighted that we had the opportunity to add this quality asset to our client’s portfolio.'
She added: 'Stara Celnice complements our existing portfolio of assets well by providing diversification to the Czech Republic office market, a market we forecast to see modest inward yield shift over the next five years.'
Cushman and Wakefield acted on behalf of IRE in the transaction.
