LaSalle E-REGI Fund makes its first acquisition in the Czech Republic
LaSalle has acquired through its LaSalle E-REGI fund Palác Anděl in Prague from Aberdeen Asset Management Deutschland AG, the German subsidiary of Aberdeen Standard Investments. This modern administrative building in the Prague district of Smíchov – Anděl is the fund’s first asset in the Czech Republic. The total purchase price reached €57,8 million. Cushman & Wakefield and Clifford Chance represented the seller. White & Case, JLL, PWC represented the buyer.
Uwe Rempis, Fund Manager at LaSalle Investment Management, said: “I am delighted with this latest purchase on behalf of LaSalle E-REGI, which, as the Fund’s first in the Czech Republic, gives it more diversification and access to the most attractive market in Central and Eastern Europe. The mixed use of the building also allows for further use-diversification within the portfolio.”
The premises, which have an area of more than 14,500 m², consist of six floors above ground and two underground, along with parking and warehouse space. The building offers nearly 80 % of office space and 15 % of retail area. Among its tenants are brands such as H&M, Pfizer, Toyota, Falcon or mBank. It is nearly fully leased.
Bernd Bechheim, Head of Transactions and Asset Management, (Continental Europe) at Aberdeen Standard Investments, Germany commented: “The successful recent leasing activities underline the quality of the asset and its future potential. We have achieved a good performance for our investors on asset level during the holding period.”
Area Anděl, where the property is located, is the most established and successful of working and living hubs in central Prague, boasting high footfall, wide offering of amenities and density of construction. Thanks to this location the property enjoys prime retail units which is rather rare for a mostly office building.
Jeff Alson, Head of Capital Markets CEE at Cushman & Wakefield, said “Palac Andel is the perfect example of a transaction where we were able to attract to the deal both local capital and pan-European or global capital, thus creating intensive bid competition. The broad level of interest is driven by the strength of prime location and accessibility of the lot size”
LaSalle E-REGI fund is an open-ended pan-European real estate fund, launched by the specialist investment company LaSalle Investment Management Kapitalverwaltungsgesellschaft mbH (“LaSalle KVG”), which is 100% owned by LaSalle GmbH, and has attracted investment from a number of major institutional investors. It aims for stable income return from a diversified core portfolio (office, retail, logistics) in transparent markets. The investment strategy is based on a quantitative model, the European Regional Economic Growth Index (E-REGI) which has been developed by LaSalle since 1999, and identifies the cities and regions across Europe that have the greatest economic growth potential over the short to medium term. The Fund also includes additional screening filters such as JLL`s Global Real Estate Transparency Index and the minimum market size.