HB Reavis Group has sold its River Garden Office I located in Prague to Prvý realitný fond (PRF) managed by IAD Investments.
The transaction values the asset at in excess of €50 million at an implied yield of slightly above 6.5 percent, reflecting the strength of the tenants and high quality of the asset. River Garden Office I is located in the dynamically developing Karlin district of Prague and, completed in 2012, offers 19, 500 sqm of rentable space, and is fully leased to a number of prestigious tenants. These include companies such as Unilever, ADP, Monster Worldwide, Alpiq and Tengelmann, with HB Reavis itself also seated there.
“We are delighted to announce exit from our first project in the Czech Republic. This transaction also confirms interest among investors in our assets outside the Slovak real estate market,” said Marian Herman, Head of Investment Management and Divestments. Over the last twelve months, HB Reavis has successfully sold several other commercial properties, including Apollo Business Center IV in Bratislava, City Business Center III-V in Bratislava and Aupark Shopping Centre in Žilina and the group has divested over €0.5 billion of commercial real estate assets in the last three years.
“The sale of River Garden Office I demonstrates the continuing successful appreciation of our projects in the Central European market. It is a significant milestone in the history of our company in the Czech Republic and in general,” said Jiří Hrbáček, HB Reavis Group CFO.
“We are pleased to add River Garden Office I to our portfolio. This acquisition is in line with our strategy and focus on projects of the highest quality, with an excellent tenant roster as well as geographic diversification of the real estate assets in the portfolio of PRF,” said Vladimir Bencz, Chairman of the Board at IAD Investments.
“The acquisition of River Garden Office has strong potential to deliver stable revenues from long term leases and thus contribute to the improvement of the overall performance of the Fund. The acquisition confirms our Fund strategic aim and ability to invest in the prime office segment. During last 12 months, we have invested almost €100 million into new projects in our funds´ portfolios,” said Vladimír Bolek, Fund Portfolio Manager of IAD Investments.