A fund managed by German investment and asset manager KGAL has acquired a mixed-use asset in Prague from Czech property company Sebre for an undisclosed sum.
The modern office and retail complex, dubbed DRN, is situated on the corner of Narodni Boulevard and Mikulandska Street. It comprises a total leasable area of 11,598 m2, including 9,818 m2 of offices, and some 1,780 m2 of retail on the first two floors.
The ambitious refurbishment scheme was developed by Sebre, incorporating parts of the original Schönkirchovský Palace from 1734 and the New Palace, to designs from architect Stanislav Fiala. It relaunched in 2017. The building's name means 'tuft' in Czech, referring to the greenery that grows on all levels.
'Although we are satisfied with the sale price achieved, this disposal leaves us with mixed feelings – after working on DRN for six years, our Sebre team had grown attached to both of these beautiful buildings, and the contrasts we achieved of contemporary counterposed with the living history that is Prague,' said Sebre CEO Jan Kubícek.
'Nonetheless, we congratulate KGAL on their acquisition and will now move on to our next projects in Prague and Belgrade, hoping to apply the experience we have learned on DRN,' Kubícek added.
The deal represents Sebre's second high-profile disposal this year, following the sale of trophy building Palác Špork to Generali Real Estate in March. That 10,000 m2 asset, constructed in 1925, was comprehensively refurbished by Sebre in 2017.
According to Sebre, DRN and Palác Špork are the two of the largest office investment transactions ever recorded in the Czech Republic and wider CEE region.
Sebre will continue to act as the property manager for DRN on behalf of KGAL.
Sebre was advised by Savills and Dentons.