Palladium in Prague acquired by REICO

Union Investment has officially announced the sale of Palladium shopping centre in Prague, a landmark asset acquired for the UniImmo: Deutschland fund in 2015. The buyer is the largest real estate fund of REICO Erste Asset Management, making the transaction the largest commercial property deal ever recorded in the Czech market.

With a total floor area of around 60,000 sqm, including 17,500 sqm of office space, Palladium is one of the CEE region’s most recognisable urban retail destinations. The centre offers over 800 parking spaces and hosts 180 stores, occupied predominantly by leading local and international brands, including several flagship formats.

Laura Roll, Senior Investment Manager Retail at Union Investment, said: “Palladium is a success story for the UniImmo: Deutschland fund, from its acquisition to its successful exit after a holding period of around 10 years. The timing of the sale at the beginning of the new market cycle is perfect. The property has generated positive long-term cash flow and a high level of income stability for the fund over one decade and achieved high value gains.”

Henri Eisenkopf, Director Transaction Shopping Places at Union Investments, also highlights: “We have now successfully capitalised on the renewed interest in dominant and high-quality retail assets in Europe to achieve a record high sales price, which we will use to further develop the fund’s portfolio through targeted reinvestments in European gateway cities.”