Hannover Leasing GmbH & Co. KG just acquired the largest downtown business and shopping center in the Czech Republic. The Palladium is centrally located in Prague's inner city, and includes about 19,500 m² in office space in addition to 200 stores and gastronomy businesses on more than 39,000 m². Underlying the transaction is a property value of more than €500 million. The purchase of the Palladium is not only the largest single transaction in the corporate history of Hannover Leasing, but is also the biggest transaction for any single property in Central Europe.
of the Palladium
Inside the Palladium
Following a construction period of 2.5 years, the Palladium is scheduled to open in October 2007. So far, more than 95% of the retail space and about 50% of the office space have already been let long-term. Main tenants in the retail sector include Marks & Spencer, Ahold, H&M, C&A, Nike, Next, Esprit, Reserved, Deichmann, the Bachus Group restaurant and the Italian fashion chain Conbipel, among others. In the office segment, several international law firms have already rented space. Moreover, this multi-functional property provides more than 20 restaurants, bars and cafés on a separate level, as well as 900 parking spaces on three levels.
Dr. Dierk Ernst, Managing Partner of Hannover Leasing, commented, "The Palladium is not just one of the biggest deals for a single property in Europe, but is also a project that will point the way for the future development of Prague. Due to its central location, the property represents a new hot spot for the downtown retail business, and has every chance to become Prague's new center for theme gastronomy and events. Also essential about this acquisition is its long-term perspective. Property in so very central a location is very hard to find in any European metropolis. Historically speaking, such buildings have proven to be a secure investment even in difficult markets."
The Palladium's project developer is European Property Development (EPD), one of the leading real estate developers in Eastern Europe. The architectonic design was created together with the architectural firm of BOSE Int. and RKTL (Malldesign).
In legal and fiscal matters, Hannover Leasing was advised during this transaction by the international law firm of Nörr Stiefenhofer (Munich, Prague). The Viennese law firm of DLA Piper Weiss-Tessbach represented the seller's side. The mezzanine financing of the purchase price was made available by Landesbank Hessen-Thüringen.
Source: Dr. ZitelmannPB