Europa Capital Goes Shopping in Prague
- Jul 09, 2015
Prague, Czech Republic—A new owner has emerged for Hadovka Office Park, an approximately 270,000-square-foot (25,000-square-meter) office building located along the Evropska corridor in Prague.
Europa Capital, through its pan-European investment fund Europa Fund IV, has acquired the property for approximately $47.5 million (€43 million), representing an initial yield of 9 percent.
The company’s partner in the project is Resolution Capital Management Ltd, an asset management firm that focuses on the Central and Eastern European region. RCM is owned by George Leslie and will assume the asset management duties for the property.
The senior acquisition loan for Hadovka was provided by German lender pbb Deutsche Pfandbriefbank, which has extensive experience in the CEE markets.
Europa Capital has tracked this asset for many years and plans to make significant investments in its improvement in the near future.
“The acquisition of Hadovka fits in with our strategy of acquiring high quality, but often capital-starved buildings, in strategic locations in European capital cities and also where we can add value with quality on-site management and building improvement. The pricing relative to the average Prague office market is very compelling,” Robert Martin, principal and head of Central Europe at Europa Capital, said.
Located in Prague 6, the capital city’s largest district, Hadovka is completely leased to a mix of national and international tenants. The building offers a high quality and affordable environment, as well as an array of on-site facilities, including a full restaurant, gym and café.
Open since 2000, Hadovka Office Park is the first project carried out by HOCHTIEF Development Czech Republic. That same year, the property received the award for the best new office project within the national Best of Realty competition.
Since it was founded in 1995, Europa Capital has raised 7 real estate funds and committed to over 90 transactions totaling about $9.92 billion (€9 billion) across 18 European countries.