Friday, 6 March 2015
Hannover Leasing sells majority stake in Prague's largest shopping center (CZ)
Hannover Leasing has sold a majority stake in the largest downtown shopping center in the Czech Republic: the "Palladium" in Prague. The transaction is based on a real estate value of approx. €570 mln. The vendor is an investment company on behalf of which Hannover Leasing had acquired and asset-managed the property. The purchaser is Union Investment, Hamburg.
The property has a total floor area of approx. 115,000 m² and is located on a site in the center of Prague's old town that used to be military barracks.
"This was just the right time to take advantage of the enormous interest in European core real estate that we see at present. Shopping centers in absolutely prime locations and with very high occupancy levels are very scarce in top European cities", said Andreas Ahlmann, Managing Director of Hannover Leasing, who was responsible for the transaction.
The vendor company will retain a minority interest in the property company. Hannover Leasing has also been engaged as consultant for the asset management of the Palladium on behalf of its owners.
The Palladium shopping center is located very close to Prague's main railroad station and is linked to the local public transport system via its own subway and street car station. The multifunctional property includes around 41,000 m² of rentable retail space over five levels. The center's 200 stores and restaurants attract an average of 45,000 visitors per day. The Palladium further comprises 18,000 m²of rentable office space.
Source: Hannover Leasing