In a significant off-market deal, Invesco Real Estate has completed the sale of Stara Celnice, a landmark mixed-use property in the heart of Prague, to the Fio real estate fund, the investment arm of Czech-based Fio banka. The transaction was made on behalf of a long-standing separate account mandate managed for Bayerische Versorgungskammer (BVK), Germany’s largest pension group under public law.
The 11,400 m² asset, located on Namesti republiky—one of Prague’s most historic and commercially vibrant squares—features a blend of premium, fully let office space and a dedicated retail component. Originally refurbished in 2002 and acquired by Invesco in 2013, the asset has seen continued enhancement through €8m in capital expenditure to bring it to best-in-class standards.
“We have made this strategic exit at a time when there is robust demand from local Czech investors for core mixed-used assets, particularly as these types of high-quality buildings rarely appear on the market. As such, we have been able to exit at a premium,” said Tomas Picha, Senior Director – Transactions, Central & Eastern Europe, Invesco Real Estate. “Given our success here, we are also keen to further grow our investments in Prague and continue to explore new opportunities in this dynamic market.”
The deal underlines Invesco Real Estate’s ability to create long-term value through active asset management, even in times of macroeconomic uncertainty. “The sale demonstrates an outperformance against underwriting and the current business plan scenario,” added Steffen Pilopp, Managing Director - Fund Management, Invesco Real Estate. “In terms of performance, the sale will be accretive to the mandate’s IRR in 2025, with the team at Invesco again creating robust, long-term returns due to active value creation.”
The transaction also reflects the continued strength of Czech investor appetite for prime mixed-use real estate in central Prague—especially for institutional-grade assets with stable income and long-term upside.
Tomas Picha – Senior Director – Transactions, Central & Eastern Europe, Invesco Real Estate
Steffen Pilopp – Managing Director – Fund Management, Invesco Real Estate
Invesco Real Estate – Global real estate investment manager
Fio real estate fund – Real estate investment arm of Fio banka
Fio banka – Czech bank and investment company
Bayerische Versorgungskammer (BVK) – Germany’s largest public pension group
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