Invesco Real Estate (IRE), the global cross-border property investment manager, is pleased to announce that it has sold a mixed use property in Prague for 29.3 mln. as part of its disinvestment strategy for its first dedicated fund for the Central European market, the ZEI fund. The property has been purchased by the CPI Group.
The Longin Business Center (LBC), which was built in 1999 and is 96% occupied, provides 10,550 m² of office space including a small hotel facility with 55 rooms. The property benefits from a favorable location and ease of access within a quiet area of Prague on the fringes of the city center in Prague 2.
The ZEI fund was launched in October 1998 and was the first vehicle offering German institutional investors the opportunity to invest in real estate in Central Europe and IRE's first fund with a dedicated allocation to Central Europe. The fund has a core-plus strategy focused on investing in the three main property sectors in the Czech Republic, Poland and Hungary markets and has an expected 12-year life span. Following the sale of LBC, the fund now has two remaining properties. IRE launched its second Central European fund (CEII fund) in 2004 with an extended focus to cover the Eastern European markets.
Doris Pittlinger, Head of European Fund Management at Invesco Real Estate commented: "We are pleased to have concluded the sale of this asset for our first fund, which has been a successful strategy for our clients who are investing with us into this region. Having an on the ground team within the region, who fully understand the marketplace, does place us at an advantage when investing and divesting locally."
Knight Frank acted on behalf of Invesco Real Estate.
Source: Invesco Real Estate