The ČSOB building in Na Pankráci has been sold to CIMEX
Knight Frank and CBRE have noted the interest of Czech investors in older buildings
In cooperation with the real estate advisors Knight Frank and CBRE, ČSOB has demonstrated that they have managed to set the sale of their property at the right time. Another property from the bank’s real estate portfolio was sold in July 2015, a building located in Na Pankráci 60, Prague 4. The CIMEX Company won the multi-round bidding procedure. ČSOB had already sold their training and accommodation centre in U Průhonu Street to the Pražská správa nemovitostí (PSN) Company. The sale of these buildings confirms the interest of Czech investors in older buildings.
“The sale of the buildings was planned in accordance with the overall strategy of the bank to optimize their administrative space,” said Daniel Rubricius, Director of the Real Estate and Investment Department at ČSOB.
Miroslav Kosnar, the General Director of the CIMEX Company added, “After the sale of the building, the bank will remain a tenant for three years, after which we will offer this top notch and architecturally rich building for commercial use.”
It is has been demonstrated that that the commercial real estate market has become increasingly more active. This may be the result of uncertainty in the real estate market involving new developments, particularly as dealing with Prague's building codes and metropolitan strategy flusters developers, while buildings such as Pankrác and other comparable properties in other sought after locations do not present problems when finishing and evaluating them after an uplift.
“We have observed a growing interest in high-quality buildings in good locationsnear the underground station, not solely from Czech entities. Nevertheless, Czech entities are often the ones that are able to offer the highest bids. Local investors have confidence in the market while at the same time they have experience with managing and further evaluating real estate activities,” said Zdenka Klapalová, Executive Director of Knight Frank.
A local investor can better assess the benefits and pitfalls and is often more aggressive at the price level they offer.
The building in Na Pankráci offers a total leasable area of 9,410 m2 with 73 parking spaces in the basement for the tenants, comprising a total area of 13,400 m2. “After the sale, the ČSOB Group will lease the entire building until 2018, at which point they plan to lease a new business premises,“ clarified Daniel Rubricius. The building has a unique architectonic character and was rebuilt to serve the needs of banking in 1997.
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.