Skanska Property Czech Republic has sold its office development Balabenka in Prague 9 – Libeň to CIB GROUP. The seven-storey building provides 13,000 sqm of leasable office/retail area. Further, new contracts have increased Balabenka’s occupancy rate to 81 percent. The building’s anchor tenants are Komerční Banka, ČSOB and Air Telecom.
“The Balabenka project is an A Class office building constructed by Skanska a.s., and over the last two years we have managed to lease it out to renowned corporate tenants. According to our business model, we concluded it was the right time to sell this project and focus our resources on the development of new properties in Prague such as Corso Court in Prague 8 whose completion is set for end of 2015,” commented Marie Passburg, President, Skanska Property Czech Republic.
“For the CIB GROUP, the purchase of the Balabenka building is a daring step in fulfilling the investment strategy of increasing the volume of office space in our real estate portfolio and its localization to the capital city. The financing partner in the acquisition is our regular partner GE Money Bank,” said Alois Přibyl, chief financial officer for CIB GROUP, regarding the transaction.
Balabenka is located on the border of two rapidly developing parts of the city – Prague 8 and Prague 9. The building is easily accessible by public transport, as there are two metro stations (Českomoravská and Palmovka) close by and two tram stops directly in front of the entrance.
Cushman & Wakefield represented Skanska Property Czech Republic throughout this transaction. Parties have agreed not to comment on the price of the transaction.
Skanska Property Czech Republic acquired this office building, formerly known as Vysočanská brána, from ORCO in 2010.