CBRE was involved in the sale of Hadovka Office Park in Prague to WOOD & Company
Europa Capital, represented by Savills, has concluded the sale of Hadovka Office Park in Prague to WOOD & Company, the leading investment bank in Emerging Europe.
Hadovka Office Park is a well specified office building in the Prague 6 submarket, located on the main road which connects the CBD with Prague’s International airport. The building, comprising 22,265 sq metres of office accommodation, is arranged over four floors above ground and a further two underground parking levels. The property is split into four parts with individual reception areas and can provide flexible office space ranging from 100 to 4,500 sq. metres to suit both larger and smaller businesses. Following implementation of Europa Capital’s asset management initiatives, the investment is now 100% let with significant occupiers including CapGemini, MSD (Merck & Company), Otis and Carrier (both part of the United Technologies Corporation). The office space is further complemented by an in-house café, canteen and gym facilities.
Since owning the building, Europa Capital has maintained substantially full occupancy while carrying out a refurbishment of the common areas and achieving an excellent BREEAM in use rating. Hadovka Office Park is now placed into WOOD & Company Czechoslovak High-Yield Real Estate subfund, the open-end fund of qualified investors managed by WOOD & Company.
We are very happy to have successfully assisted WOOD & Company in acquiring Hadovka Office Park, a high-quality office property that has benefitted from significant investment by the previous owner and is now set to provide WOOD & Co’s clients with solid returns on a long-term basis. The sale of Hadovka Office Park is one of the largest transactions closed so far this year, although we expect significant activity in the coming months across the office, retail and industrial sectors with forecast volumes for 2018 to surpass 2 billion EUR.
The quality of this asset is evidenced by the high retention rate of its occupiers and the refurbishment we have carried out has gone a step further towards improving tenant satisfaction. This sale is a successful example of our strategy to acquire high quality but capital starved income producing assets and to modernise the fabric of buildings whilst improving the income profile.
We are pleased to be adding Hadovka Office Park into our portfolio within WOOD & Company Czechoslovak High-Yield Real Estate subfund, which already consists of three recently acquired office projects in Bratislava. Our goal now is to focus primarily on Prague office market, while Hadovka fits well into our plans and strategy. Hadovka is an A-class office building in a unique location with a well-diversified tenant mix and we are dedicated to further improve services for our tenants.