CBRE was involved in the sale of the Metronom Business Center in Prague
ČS nemovitostní fond, managed by REICO investiční společnost České spořitelny, has executed this year’s largest office transaction in the Czech Republic. By mid-June 2018, the fund acquired the Metronom Business Center in Prague’s Butovice office hub, for CZK 2.3 bn (ca. EUR 89.5 mil). The majority tenant is the German software giant SAP, who has its Prague headquarters here. The developer and seller was HB Reavis, who delivered the building in 2015.
This acquisition represents a comeback of ČS nemovitostní fond to the Czech Republic and Prague after nearly two years. Its last acquisition in the Czech Republic was the purchase of the City Tower in Prague 4 in September 2016. Since then, the fund invested another approximately CZK 9.3 bn (ca. EUR 360 mil.) in prime properties in Poland and Slovakia. Following the acquisition of the Metronom Business Center, the Czech real estate assets in the fund’s portfolio accounts for approximately 53% of the fund’s property value, which is in line with its long-term strategic allocation.
In spite of our recent acquisitions abroad, ČS nemovitostní fond continues to focus primarily on the Czech Republic. The acquisition of the Metronom Business Center will help us further increase the share of the real estate component of the fund, thereby ensuring stable performance over the long term for our unit holders.
The Metronom Business Center is a modern ten-story office property constructed in 2015 by HB Reavis. With nearly 34,000 sq m and 528 parking spaces, it is one of the largest buildings in the Nové Butovice office district. It is located directly on the metro station, in the immediate vicinity of a bus terminal and a local shopping centre. Apart from the main tenant, SAP, the property is leased to BMW, Abbvie, DAZ Group, Rossmann, and others. The Metronom Business Center is environmentally certified with BREEAM ‘Excellent’ rating and amongst other things it is equipped with charging station for electric vehicles. The total occupancy of the building exceeds 98%.
Given the quality and leasing profile of the building, strong investment market, and rising build costs, the acquisition of the Metronom Business Center represents an interesting fund return, with limited downside risk
In the transaction, the buyer was represented by CMS Cameron McKenna, CBRE, ASB, and Sentient. The seller was the HB Reavis Group, a leading European development company.
Central & Eastern European Investment Market Snapshot Q1 2018 you can find on this link: