Aviva Investors and LaSalle have acquired a class-A office building with ground floor retail in Prague on behalf of pan-European fund Encore+ for €84 mln.
The acquisition of River Garden II & III is is Encore+'s first acquisition in the Czech Republic.
The transaction 'gives Encore+ the opportunity to access high quality office space with a mixed tenant profile of both international and local companies on long leases,' the fund said. ‘It also benefits from the strong and growing Czech economy, that has the second lowest unemployment rate in the EU.'
River Garden II & III is located in the Karlin district of Prague, a popular office and residential location close to the city centre and well-connected by underground, trams and buses. The building, which has recently been awarded a BREEAM Excellent certification award, was developed by HB Reavis, an internationally active real estate company which is currently ranked third in Europe, according to PropertyEU's annual Top Developers Survey.
'This is a modern, high quality office building and the Fund's first Czech acquisition, so it makes an excellent fit further diversifying the fund's composition,' said Ian Williamson, portfolio manager at LaSalle Investment Management.
Encore+, a diversified real estate fund focused on continental Europe, has been co-managed for over ten years by Aviva Investors as fund manager and LaSalle Investment Management in charge of asset management and all deal sourcing.
'The Czech Republic is an attractive market thanks to strong and steady economic growth,' said Jeffrey King, fund manager of Encore+ at Aviva Investors. 'The acquisition of River Garden II & III represents an excellent opportunity to acquire high quality office and retail space in an established submarket, and generate attractive risk adjusted returns for investors.'