AXA Real Estate Investment Managers (AXA REIM) has acquired a 100% share in the Czech SPV holding the Oregon House office building from Portland Trust, part of the Apollo Real Estate Group. The investment volume amounts to circa 40 mln. With this transaction, AXA REIM is continuing its strategic geographic portfolio diversification for its open-ended real estate fund AXA Immoselect.
Oregon House was developed by Portland Trust and was delivered in February 2006. The building offers 15,000 m² of Class-A office space and is located in Zlicin, a dynamically growing area of Prague located next to the D5 Highway. The building stands at 75% leased to high profile tenants including ADP, Cemex and Ikea.
"The acquisition of Oregon House is a solid first step for AXA REIM into the Czech Republic market. Oregon House offers one of the highest specifications of office space in Prague and is complemented by an excellent tenant line-up. We are confident that the remaining space will be leased in the short-term and that we will benefit as the Zlicin area grows further as an established business location," said John Verpeleti, Head of AXA REIM Central Europe.
Robert Neale of Portland Trust added : "It was a pleasure doing business with AXA REIM. The rents are comparatively low and the tenants are world class and secured on long-term leases, so I am sure this will be a good performing asset".
"This acquisition marks our first investment in the Czech Republic and further increases the share of our investments in the growing markets of Central Europe. In a market environment characterised by high purchase prices, we have further implemented our fund strategy of investing specifically in stable-return properties," said Achim Gräfen, fund manager of AXA Immoselect. "We also successfully increased the diversification of our portfolio, as this Prague property has now given us exposure to our ninth European country. This investment clearly contribute to the stability of the AXA Immoselect product for our investors."
Source: AXA REIM