REDSIDE acquires a leading office platform in Prague
The Czech investment company REDSIDE; managing real estate open-ended investment fund with variable capital of qualified investors has successfully completed an acquisition of four office buildings from German investment fund. The Vendor was represented by CBRE, Schönherr, Rödl & Partner, TPA Horwath and Whitestar Real Estate, whereas Colliers International, CMS Cameron McKenna, ASB and Sentient represented REDSIDE in the transaction.
The subjects of the sale were four office buildings - the Pfizer and BNP headquarters, Vysehrad Victoria and Avenir Building E. The portfolio consists of 24,660 sq m of gross lettable area. The buildings were constructed between 2004 and 2008 by UBM Bohemia, Skanska and Immorent. The Pfizer and BNP headquarters are located in the heart of the Andel office hub. Vysehrad Victoria is the most centrally located property within the Prague 4 submarket and Avenir, bulding E is located next to the shopping centre Galerie Butovice in the Nove Butovice office hub. The buildings are modern and well-maintained with high technical standards and attractive designs, especially the Pfizer headquarters offering space above market standard. The office space is currently fully let in total to 28 tenants and 60% of the rental income is collected from Fortune 500 companies including BNP Paribas, Pfizer, Google, CSC Computers and Porsche. The transaction price was not disclosed.
We believe that the capital value of portfolio is secured due to its balanced income, high quality office space and the excellent location of the assets.
“This prime office portfolio is a great acquisition for our client Redside as it offers exposure to the most liquid and sought-after asset class in Czech investment market, it is leased to strong covenants and has always maintained a very high occupancy level.” says Tomáš Berka, Senior Associate, Investment Services, Colliers International.
CBRE and Colliers International record strong demand for office space in 2015 in volume above 100,000 sq m. The Prague office market has been experiencing a recovery not only in terms of demand but also development. After a very strong 2014 and 2015 we expect 2016 to be the lowest in terms of new development in history with than 50,000 sq m expected to be delivered during the year. This should substantially support office investment volumes throughout 2016, so office investment might restore its historical dominance among asset classes. Both companies preliminary estimate of total investment volumes in commercial real estate for 2016 is circa EUR 2 billion.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.