KGAL has acquired the DRN office building in Prague for a pan-European special real estate Alternative Investment Fund (AIF). The purchase is in line with KGAL’s strategy of Europe-wide diversification across prime locations and is its first investment in the Czech Republic. The fund now holds properties in Germany, Austria, Ireland, Hungary, the Netherlands, Poland and the Czech Republic. The purchase price was not disclosed.
The centrally located property features contemporary space and a heritage building. Designed by Stanislav Fiala, the building incorporates parts of the original Schonkirchovsky Palace which dates from 1734 with an interconnecting new building which was completed last year provides high-quality office space and eating and drinking amenities. The asset enjoys close proximity to the National Theatre, Charles Bridge and Wenceslas Square. The central metro station Narodni trida is 300 metres away. The property is almost fully let and is currently home to 13 occupiers. The rentable space totals 12,595m² with 2,290m² in the old building and 10,305m² in the new building.
Andre Zucker, Managing Director for Real Estate at KGAL Investment Management, comments: “The DRN complex is a unique gem of commercial real estate. It combines the first-class workspace with superb architecture that blends the traditional with the modern”.