The real estate arm of Austria’s Erste Group is expanding its footprint in the Czech market through the acquisition of Palladium Prague, one of the country’s best-known retail and office complexes. The purchase is being reviewed by the Czech Office for the Protection of Competition (ÚOHS), which is assessing the potential effects on the local leasing market before granting approval. The deal is being conducted through Project Aurelia, a special-purpose company under Reico’s Erste Asset Management fund. While financial details have not been made public, industry sources suggest the transaction could rank among the largest retail property deals in Central Europe this year. Palladium, located on Republic Square in the centre of Prague, has long been a landmark of the capital’s retail sector. Its total area of around 115,000 square metres houses over 150 shops, restaurants, cafés, and offices, as well as an underground car park. The centre was originally developed on the site of historic military barracks and opened to the public in 2007. The property’s current owner, Union Investment, purchased it in 2015 for roughly €570 million. Earlier this year, market analysts indicated that the asset was being marketed for around €700 million, reflecting continued investor demand for prime retail properties in the Czech capital. In 2023, Palladium generated more than CZK 1 billion in revenue and recorded a profit of CZK 107 million, underscoring its resilience in a recovering retail environment. Market observers note that the transaction highlights growing investor confidence in Prague’s commercial property sector. According to recent reports from CBRE and Cushman & Wakefield, both retail and mixed-use investments in Central Europe have seen renewed interest in 2025 as inflation moderates and consumer spending stabilises. Analysts point to Prague’s strong tourism flows and steady retail demand as key factors supporting capital values. The deal also reinforces Reico’s position as one of the most active institutional investors in Czech real estate. The fund, which operates under the Erste Group, manages a portfolio of office, retail, and logistics assets across the country. If approved, Palladium will become one of its flagship holdings, strengthening its influence in the premium retail segment. Market commentators caution, however, that the acquisition comes amid ongoing debates about long-term yields and sustainability upgrades in ageing shopping centres. Rising maintenance costs and evolving tenant expectations are prompting owners to re-evaluate building operations and energy efficiency strategies. Pending the outcome of the competition authority’s review, the acquisition of Palladium marks a defining moment for Prague’s property investment market in 2025—reflecting both renewed optimism among institutional investors and continued international confidence in the Czech capital as a retail destination.