Union Investment has sold the Trianon office property in Prague, held by its open-ended real estate fund UniImmo: Europa, for around €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 €44.5 million. Thanks to active asset management, the high-quality building with its approximately 20,600 m² of rental space attracted significant market attention. At the time of sale, the building had an occupancy level of nearly 100 %.
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, 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 % in the prize-winning Danube House and in Technopark Pekarksa in Prague.
Source: Union Investment