Real estate fund REICO ČS NEMOVITOSTNÍ (RČSN) continues to rebalance its portfolio. After the recent sale of the Office Box and the purchase of the Bořislavka Centrum last year, it has now proceeded to sell the Rohan Business Centre in Prague. The value of the divestment is approximately 740 million CZK (€31.3 million).
“The disposal of Rohan Business Center proves liquidity of our real estate portfolio at existing valuations, helps in optimizing our sector allocation and provides additional funds for future acquisitions”, says Tomáš Jandík, CEO of REICO IS ČS.
The Rohan Business Centre was acquired by the collective investment fund Fio Real Estate Fund, a retail real estate fund primarily focused on commercial real estate investments in the Czech Republic and in Slovakia. The reason for the sale was mainly to reduce the fund’s exposure to the office sector by closer to 50 percent of its market value, which is in line with its strategic real estate asset allocation. The sales proceeds will have a slightly positive impact on the fund’s return. Knight Frank, Wilsons, ASB and Savills in the transaction represented REICO.
“This transaction confirms the investors’ appetite for A-class real estate in prime locations to remain strong. Institutions continue to seek out attractive opportunities in the Czech market which generally suffers from a scarcity of quality investment products. The sale of Rohan Business Centre underlines our ability to close deals despite the current market constraints,” adds Jiří Horák, Head of Transactions of REICO IS ČS.
The total leasable area of the Rohan Business Centre office building is 9,434 sqm. In terms of size, it was one of the smallest properties owned by the fund. Its sale was therefore reflected in the average value of the fund’s portfolio, which has increased to CZK 1.88 billion. The building comprises mainly offices, complemented by warehouse and retail space. The property is located on Rohanské nábřeží in Prague’s Karlín district and thus has very good transport links.
After the sale of this building, REICO ČS NEMOVITOSTNÍ has 19 properties in its portfolio with a current market value of almost CZK 36 billion.
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