REICO ČS REAL ESTATE sold Rohan Business Centre building in Prague
REICO ČS NEMOVITOSTNÍ (RČSN) continues to renew its portfolio. After the recent sale of the Office Box building and the purchase of the Bořislavka Centrum multi-purpose property last year, it has now proceeded to sell the Rohan Business Centre office building in Prague. The value of the divestment is approximately EUR 740 million. CZK (EUR 31.2 million).
"The sale of the Rohan Business Center demonstrates the liquidity of our real estate portfolio at current valuations, helps to optimise the fund's sector allocation and will provide the necessary liquidity for other interesting acquisitions in the future," says Tomáš Jandík, Chairman of the Board of REICO IS ČS.
The Rohan Business Centre was acquired by Fio Real Estate Subfund I, 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 REICO ČS REAL ESTATE's exposure to the office sector closer to a half of its portfolio value, which is in line with its strategic real estate asset allocation. The income from the sale will have a slightly positive impact on the Fund's current year return. Knight Frank, Wilsons, ASB and Savills represented the REICO IS CS fund managers in the sale of the building.
The total lettable 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 increased to CZK 1.88 billion. The building houses 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 a total of 19 properties in its portfolio with a current market value of almost CZK 36 billion. The sale of the Rohan Business Centre building and especially the value of the transaction, despite the global economic downturn, demonstrates the high liquidity of the fund and the quality of the properties held. As at the end of April 2023, over 107,000 unitholders were invested in the RČSN fund and the fund's return over the last 12 months was 6.9% per annum (as at 11 May 2023).