International real estate developer HB Reavis has sold River Garden II & III to Aviva Investors and LaSalle Investment Management, on behalf of the Pan-European Fund, Encore+, for €84 million, the fund’s first acquisition in the Czech Republic. The value of the transaction is a reflection of the high-quality class-A office and ground floor retail spaces the buildings offer along with its prime location in the Karlin district of Prague.
The BREEAM Excellent certified, eight-storey complex offers more than 25,000 sqm of office and retail space and was completed in 2014. River Garden is located in the popular area of Karlin, one of the most sought after office locations in Prague. The assets are situated within close proximity to the city centre and offer excellent access to communication links including the subway, trams and buses nearby.
River Garden ll & lll gives Encore+ the opportunity to obtain a high-quality office space with a mixed tenant profile of both international and local companies on long leases. The fund will also benefit from the Czech Republic’s strong economy with the second lowest unemployment rate in the EU.
“The Czech Republic is an attractive destination for investors thanks to the strong and steady growth in its economy. The acquisition of River Garden ll & lll represents an excellent opportunity to acquire a high quality office and retail space. Although LaSalle has already invested over €80 million on behalf of other funds we manage, it will be the first acquisition of Encore+ in the Czech Republic,” said Chris Zeuner, Head of Central Europe at LaSalle Investment Management.
HB Reavis is currently the third largest developer in Europe, according to PropertyEU’s annual ‘Top Developers Survey’ and has over the past twelve months successfully sold 14 completed commercial properties – for a total value of over 1 billion EUR – including Konstruktorska Business Center and two buildings within Gdanski Business Center in Warsaw, 33 Central in London, and a logistic portfolio in the Czech Republic and Slovakia.