News

REDSIDE acquires a leading office platform in Prague

The Czech investment company REDSIDE; managing real estate open-ended investment fund with variable capital of qualified investors has successfully completed an acquisition of four office buildings from German investment fund. The Vendor was represented by CBRE, Schönherr, Rödl & Partner, TPA Horwath and Whitestar Real Estate, whereas Colliers International, CMS Cameron McKenna, ASB and Sentient represented REDSIDE in the transaction.

• The Portfolio provides excellent covenant strength secured by blue chip companies - Pfizer, BNP, Google or Porsche.
• The portfolio of four buildings consists of 24,660 sq m of largely prime office space and 238 underground parking spaces.
• All assets are situated in excellent locations within the Prague office hubs of Andel, Pankrac and Butovice.
• The first transaction of the year. Further large investments into office and retail space are expected in 2016.

The subjects of the sale were four office buildings - the Pfizer and BNP headquarters, Vysehrad Victoria and Avenir Building E. The portfolio consists of 24,660 sq m of gross lettable area. The buildings were constructed between 2004 and 2008 by UBM Bohemia, Skanska and Immorent. The Pfizer and BNP headquarters are located in the heart of the Andel office hub. Vysehrad Victoria is the most centrally located property within the Prague 4 submarket and Avenir, bulding E is located next to the shopping centre Galerie Butovice in the Nove Butovice office hub. The buildings are modern and well-maintained with high technical standards and attractive designs, especially the Pfizer headquarters offering space above market standard. The office space is currently fully let in total to 28 tenants and 60% of the rental income is collected from Fortune 500 companies including BNP Paribas, Pfizer, Google, CSC Computers and Porsche. The transaction price was not disclosed.

Vítězslav Doležal, Senior Investment Analyst, Investment Properties, CBRE Czech Republic, says: “We believe that the capital value of portfolio is secured due to its balanced income, high quality office space and the excellent location of the assets.” 

Tomáš Berka, Senior Associate, Investment Services, Colliers International, says:“This prime office portfolio is a great acquisition for our client Redside as it offers exposure to the most liquid and sought-after asset class in Czech investment market, it is leased to strong covenants and has always maintained a very high occupancy level.”

CBRE and Colliers International record strong demand for office space in 2015 in volume above 100,000 sq m. The Prague office market has been experiencing a recovery not only in terms of demand but also development. After a very strong 2014 and 2015 we expect 2016 to be the lowest in terms of new development in history with than 50,000 sq m expected to be delivered during the year. This should substantially support office investment volumes throughout 2016, so office investment might restore its historical dominance among asset classes. Both companies preliminary estimate of total investment volumes in commercial real estate for 2016 is circa EUR 2 billion.

CONTACT:         

Ivona Novotná, CBRE s.r.o., Corporate Communication Manager, Palladium, nám. Republiky 1a, Praha 1, T: +420 221 711 046, M: +420 731 889 963, ivona.novotna@cbre.com, www.cbre.cz

Gabriela Dvořáková, Colliers International, Communications Manager, gabriela.dvorakova@bestcg.com,  +420 601 357 066

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About REDSIDE

Investment company REDSIDE investiční společnost, a.s. was founded in 2012 as a joint venture of ASB Group and Arca Capital. Besides the real estate fund, its portfolio includes also qualified investor funds focused on private equity and renewable energy sources. Read more at www.redsidefunds.com.

About CBRE

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 2015 revenue). The Company has approximately 70,000 employees and serves real estate owners, investors and occupiers through approximately 400 offices worldwide (excluding affiliates). CBRE offers strategic advice and execution for real estate sale and lease, corporate services, facility and project management, real estate appraisal, development services, investment management and research. In the Czech Republic, CBRE has almost 400 employees and manages nearly 200 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.

About Colliers International

Colliers International Group is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide across a broad range of property types Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals' Global Outsourcing for 10 consecutive years, more than any other real estate services firm. Read more at: www.colliers.cz.