Union Investment has bought a majority stake in a €570m ($620.8m) Prague mall.

The German fund manager said it took a majority stake in the Palladium shopping centre, investing for its UniImmo: Deutschland open-ended real estate fund.

Hannover Leasing, which sold the centre for a private equity company, will asset manage the centre

The seller is keeping a minor interest in the property company, which holds the asset.

Union said the asset, built and bought by Hannover Leasing in October 2007, includes 41,000 sqm of retail and 18,000 sqm of office use.

The asset, the largest shopping centre in Prague’s central retail district, is almost fully let.

Hannover Leasing’s managing director, Andreas Ahlmann, said: “This was just the right time to take advantage of the enormous interest in European core real estate we see at present.

“Shopping centres in absolutely prime locations and with very high occupancy levels are very scarce in top European cities.”

Bayern LB and Helaba financed the deal, Union said.

Following the acquisition of Palladium, Union said that, based on real estate asset values, around 40% of Union Investment’s retail assets are outside Germany.