Port7, Riverside Karlín, City Element. Prague office buildings are changing hands

Prague office buildings are once again changing hands between investors this year. AFI has bought Port7 in Holešovice, the City Element and Trimaran pair in Pankrác has been acquired by the new Aurelia fund, and the Riverside Karlín complex is heading to Trinity Banking Group. A brief overview of the key deals.

Port7: new owner AFI

AFI, an Israeli-rooted company that presents itself as a long-term investor and residential rental operator, has bought the Port7 office complex in Holešovice, with an area of nearly 36,000 m², from developer Skanska. According to both parties, the price was €130 million (approximately CZK 3.16 billion), and the deal also included adjacent plots with planning permission for approximately 150 apartments. AFI says the building fits its strategy of investing in high-quality offices in good locations.

Pankrác: City Element and Trimaran

The City Element and Trimaran office buildings in Prague-Pankrác have been acquired from Allianz Real Estate by the new Aurelia fund from the domestic investment group Axelor.

Riverside Karlín: five buildings for approximately €300 million

The sale of the Riverside Karlín complex, comprising five office buildings in Prague, should also be completed by the end of the year. The buyer is a company from Radomír Lapčík’s Trinity Banking Group. The deal is valued at around €300 million (approximately CZK 7.3 billion). According to available information, the seller, Austria’s CA Immo, waited until the buildings were fully let. This also applies to the corner building Danube House, which underwent a major refurbishment and was the only completed office project in the second quarter.

What it means for tenants

A change of ownership generally does not alter the terms of existing leases; they are transferred to the new owner. For companies looking for offices, however, it shows that investors are interested in high-quality buildings in established locations. Prague’s vacancy rate is holding at 5.8%, while lease renewals accounted for 69% of transactions in the second quarter, meaning that companies often stay where they are. Those considering a move would benefit from starting their search well in advance.

Source: Hospodářské noviny