Union Investment takes profits on sale of Trianon office property in Prague
Union Investment has sold the Trianon office property in Prague, held by its open-ended real estate fund UniImmo: Europa, for around EUR 53.8 million. The buyer is Czech investment management company REICO, a subsidiary of Česká Spořitelna, which forms an important part of ERSTE Group and plans to incorporate the property into one of its open-ended real estate funds. Union Investment acquired Trianon in 2005 from Hochtief Development as a speculative development project. The overall development costs amounted to EUR 44.5 million. Thanks to active asset management, the high-quality building with its approximately 20,600 sq m of rental space attracted significant market attention. At the time of sale, the building had an occupancy level of nearly 100 per cent. Czech bank Česká Spořitelna is the property’s main tenant, with 59 % of the space.
“Over the four-year holding period since opening, the property generated good ongoing income for UniImmo: Europa. We chose the best possible exit time,” said Dr. Reinhard Kutscher ( photo), Chairman of the Management Board at Union Investment Real Estate GmbH, Hamburg.
Located in the Prague 4 office market, Trianon was the first property in Central and Eastern Europe to be fully owned by Union Investment.
Following the sale, the UniImmo: Europa open-ended real estate fund still holds minority shares of 49 percent in the prize-winning Danube House and in Technopark Pekarksa in Prague.
Source : Company