Penta sells Prague office building to South Korean investor
Penta Real Estate has sold the 80,000 sqm office component of the Waltrovka complex in Jinonice, Prague 5 to Munich-based real estate fund manager GLL Real Estate Partners (GLL), a member of Macquarie Group, acting together with LB Asset Management on behalf of South Korean investor Hanwha Investment & Securities in a transaction worth over €250 million.
The Waltrovka office complex, consisting of the Aviatica, Dynamica, Mechanica I and II and Walter buildings, was completed between 2015 and 2018. The buildings are leased to a broad range of sector diverse tenants including Johnson & Johnson, Oracle, Sberbank, Strabag, Amrest, and Astra Zeneca.
Penta acquired the 170,000 sqm Walter factory site in 2012 with the ambition to turn it into a vibrant new city district, and alongside the office buildings, the complex also includes 700 apartments and houses, a kindergarten, and a large 20,000 sqm central park with a 1-kilometre running track. It is a pioneering example of a successful brownfield development in Prague that will be completed by mid-2020.
“High interest among international investors for the administrative complex at Waltrovka is a confirmation of our strategy of high-quality development with a focus on architecture, sustainability and public areas,” says Pavel Streblov, Director of Commercial Real Estate at Penta Real Estate.
“We are delighted to have acquired this prime business campus on behalf of our investor. The high quality of construction and blue-chip calibre of the anchor tenants, together with continued growth prospects for the Prague office market make us excited to have completed this transaction,” Philip Wood, Head of CEE Transactions at GLL commented.
”We believe a quality asset such as Waltrovka will provide sufficient risk-adjusted returns together with great upside potential. The Czech Republic is expected to continue with solid economic growth, and we are very pleased to acquire Waltrovka from Penta together with our partners GLL and LB Asset Management,” Yong Seok Choi, Head of the Finance and Investment Division at Hanwha Investment & Securities commented.
Penta was represented by Cushman & Wakefield and Dentons, and GLL by Wilsons and CBRE.