Union sells Trianon office in Prague

Union Investment has sold the Trianon office property in Prague, held by its UniImmo: Europa open-ended real estate fund, for around €53.8 mln.

The buyer is Czech investment management company Reico, a subsidiary of local bank Èeská Spoøitelna, which forms part of Erste Group.

Reico, which is also the major tenant as it occupies 59% of the space, plans to incorporate the 20,600 m2 property into one of its open-ended real estate funds.

Union Investment acquired Trianon in 2005 from Hochtief Development as a speculative project. The overall development costs amounted to €44.5 mln.

At the time of sale, the building had an occupancy level of nearly 100%.

'Over the four-year holding period since opening, the property generated good ongoing income for UniImmo: Europa. We chose the best possible exit time,' said Reinhard Kutscher, chairman of the management board at Hamburg-based Union Investment Real Estate.

Located in the Prague 4 office market, Trianon was the first property in Central and Eastern Europe to be fully owned by Union Investment.

Following the sale, the UniImmo: Europa open-ended real estate fund still holds minority shares of 49% in Danube House and in Technopark Pekarksa in Prague.