Dentons advised Česká spořitelna, the Czech subsidiary of ERSTE Bank, on the €113 million (CZK 2.7 billion) refinancing of the Czech real estate portfolio managed by real estate developer and asset manager Zeitgeist Asset Management. The deal will enable Zeitgeist to ensure the financial stability of its current portfolio for the next 10 years. The portfolio includes 23 buildings in Prague – consisting primarily of residential apartment buildings and student accommodation – with a total value of €220 million.
Through its financing of this project, Česká spořitelna demonstrates its support of quality alternatives to home ownership, by bringing more stability into the Czech rental market.
Partner Daniel Hurych, Co-head of the Banking and Finance practice in Prague, led Dentons’ legal team, which included counsel Martin Manduľák and Jana Málková Želechovská and associates Martin Fiala, Samuel Bodík, Jan Blažek and Leontýna Bártová.
Daniel Hurych commented, “We are proud to support our clients’ strategies and solutions to overcome the current housing crisis in the Czech Republic. The proportion of household budgets dedicated to housing has risen dramatically over the last decade, and many families lack the necessary access to financing to purchase their own homes. We were grateful for the opportunity to join Česká spořitelna in this project, which will boost the availability of long-term rental and student housing in Prague.”
Zeitgeist Asset Management, headquartered in Prague, specializes in development services and asset management for private and institutional investors. The company has operations in the Czech Republic, Poland, Hungary and Germany. Since its founding in 2014, Zeitgeist has grown rapidly, and currently manages assets of approximately €800 million.