M7 Real Estate has completed the sale of Oregon House in Prague on behalf of M7 Central European Real Estate Fund I (“M7 CEREF I”) to BHS German Real Estate Fund.
Oregon House is a 14,550 m² modern office building prominently located in Prague’s 13th district. The property was originally acquired on behalf of the Fund in October 2016 with a high vacancy level of over 35%. M7 identified an opportunity to create value by undertaking an intensive asset management programme. This has led to five new leases, comprising 5,000 m² of space. Current occupancy is approaching 85%. The rental values have been increased by an average of 14% ahead of ERV and the WALT has increased to over 4 years.
Paul Betts, MD Central Europe for M7 commented: “This sale demonstrates our ability to successfully identify attractive assets and execute a business plan to deliver excellent returns for our investors. Since acquiring the property in 2016, M7 has applied its market expertise as an investment and asset manager to transform the property, at the same time as significantly improving occupancy and rental tone.”
M7 CEREF I was advised by White & Case and ASB Group. BHS was advised by HKDW, PWC and BNP Paribas Real Estate.
