Investment manager Warburg-HIH Invest Real Estate has inked a share deal for office property River Garden 1 in Prague with La Salle Investment Managers.
Financial details were not disclosed.
The 19,000 m2 office asset in Karlin, which has been earmarked for the individual fund of a German investor, comprises office accommodation on six floors, as well as 2,200 m2 of retail area.
La Salle IM purchased the property for around €57 mln in 2017 from Slovak asset management firm IAD Investments. IAD in turn bought it from developer HB Reavis in 2014 for more than €50 mln.
La Salle IM said that its asset management of the scheme has brought the occupancy to 90%.
'We expect a lease with an international technology company to be signed for the currently vacant floor space in the near future,' said Matthias Brodesser, head of transaction management international at Warburg-HIH Invest.
The main tenant at the River Garden 1 is Automatic Data Processing (ADP), one of the world’s largest independent IT service providers. Other tenants include Monster Worldwide, Creditinfo, Unilever and Shoptet. The average lease term is 4.3 years and thus close to the local standard term of five years.
'The neighbourhood is particularly popular among young people. Historically known as an industrial and residential district, Karlín has undergone a dynamic development over the past ten years,' Brodesser said. 'The property has effectively performed quite well within the competing environment, including during the first re-letting cycle. The acquisition marks the consistent continuation of our strategy in Eastern Europe on behalf of institutional investors from Germany and overseas.'
Warburg-HIH Invest was advised on the financial and fiscal due diligence by KPMG. The legal due diligence was carried out by the law firm of Kinstellar, with commercial advisory by BNP Paribas.