Generali Real Estate has acquired the Kotva department store in Prague from local firm Pražská Správa Nemovitostí (PSN) through its pan-European Generali Real Estate Asset Repositioning (GREAR) fund.
Although the financial details were not disclosed, Czech media put the deal price at around €150 mln, making it the largest retail property investment deal so far this year.
Generali Real Estate, in cooperation with Sekyra Group, plans to extensively redevelop the iconic department store and return it to its former glamour and position as a high-level shopping destination in the historical centre of Prague. The asset encompasses 28,000 m2 of retail space over seven storeys on the edge of the city’s Old Town.
The honeycomb-shaped building was built in the 1970s and was recently added to the city’s list of architectural monuments.
PSN is said to have bought the property from Ireland’s NAMA for around CZK 2 bn (then €80 mln).
‘We are proud to invest in this iconic property and look forward to fully refurbishing it, preserving its historic value while adopting the latest recognised standards. This acquisition is fully in line with our strategy of investing in valuable assets in Europe's most dynamic and fast-growing cities,’ explained Ramon Spoladore, the regional manager for the CEE and Nordics at Generali Real Estate.
Clifford Chance Real Estate team advised Generali Real Estate on the deal.