(2 881 CZK, ) announced acquisition of the office building in Prague’s BB Center for its Endurance office and retail fund from Passerinvest Group. Building provides 14,600 sqm of office space and is currently fully occupied by CEZ.
This acquisition is similar to one that Immoeast concluded recently, when it acquired office building in BB Center that is fully occupied by TEF O2 CR. The (53 EUR, -1,71%) value of that transaction amounted to EUR 110m, implying price EUR 2,300/sqm. We believe that made comparable deal, with the value of transaction some EUR 35m. Although the attractiveness of the BB Center and quality of the premises is high, we don’t see acquisition in Prague very positively as it doesn’t provide significant upside. Note that property was acquired for the Endurance fund, where holds only 10-15% stake and benefit from the management and other fees, rather than the appreciation of the property.