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Visionary, Prague, Czech Republic

CATEGORY
Investment Deal of the Year, CEE
Visionary is an A-class office building ,completed in April 2018, which has 23,000 sqm of gross leasable area. Located in Prague 7, one of the most dynamically developing districts in Prague, the building is currently fully occupied with tenants such as Accenture, Business Link and WMC/ACTUM Digital. Visionary is located along the left bank of the Vltava river in Prague 7. As is the case with Karlín (Prague 8), the Holešovice district is fast becoming a hub of development for new offices and apartments. Visionary is the first completed top modern office project in the immediate vicinity of the Nádraží Holešovice subway and train station. The building received LEED Platinum certification for Core & Shell, earning a total of 95 points. It is the highest-rated sustainable building in CEE and the second-best in Europe. Visionary is expected to receive the first WELL Core & Shell certification in the Czech Republic, which monitors factors that affect people's health and wellbeing (e.g. quality of air, water and access to a source of light) and focuses on personal comfort, access to healthy food and the effect of buildings on physical and mental health. The common areas and retail spaces of the building offer a range of services not only to its tenants but also to the local community. The building comes with a garden, and people will have access to amenities such as a multifunctional sports area. In addition, many other services are directly located in the building, such as a doctor‘s clinic, pharmacy, kindergarten, a restaurant, and a self-service laundry; a running track is also provided on the rooftop. Moreover, shared e-car and bike facilities are available for tenants. A mobile app connects all the services in the building and its surrounding area.
Name of the deal
Visionary, Prague, Czech Republic
The date of closing the deal
Q2 2018
Value of the transaction (in EUR)
EUR 68m
Yield
confidential
Seller, plus brief information about the company
Skanska is one of the leading development and construction companies in Europe. Outside the Nordics, the company has European operations in building construction and civil engineering in Poland, Czech Republic & Slovakia, and the UK. Skanska develops commercial properties in select home markets in Poland, Czech Republic, Romania, and Hungary, while the residential development is active in Prague and Warsaw. In 2017, Skanska had sales of SEK 37 billion and about 16,000 employees in its European operations.
With the largest presence in CEE among office developers (10 markets within the region), the company enjoys the trust of tenants and investors, who are willing to continue working together, expanding their businesses in Skanska’s other office buildings. The company provides futureproof flexible offices tailored to the needs of modern companies, meeting the highest requirements of sustainable development, which is confirmed by their LEED certification.
Consultancy which advised Seller
Legal adviser for Skanska was Dentons.
Purchaser, plus brief information about the company
CA Immo specializes in office properties in Central European capitals. The company was founded in 1987 and operates today in the core markets of Austria, Germany, Poland, Hungary, Czech Republic, and Romania. CA Immo is listed on the Vienna Stock Exchange and included in the ATX index and holds property assets of around € 3.8 billion.
The Prague asset portfolio, which accounted for approximately 7% of the total portfolio of CA Immo as at 31 March 2018, consists of four office buildings, including the River City Prague properties Danube House, Amazon Court, and Nile House. The book value of the investment portfolio comprising around 106,100 sqm was approximately € 267 m as at 31 March 2018, the occupancy rate stood at 98%.
Consultancy which advised Purchaser
CA Immo was advised by Clifford Chance (legal), E&Y (tax, financial) and Obermeyer Helika (technical).
Financing institution
confidential
Current occupancy level
100%
Please say why this deal should be considered for the award
CA Immo and Skanska have successfully signed and closed the second transaction between the two companies in the CEE region in 2018. After the purchase of Campus 6.1 in Bucharest in April, the Visionary office building is CA Immo’s next step in the expansion of the CEE core portfolio. These two acquisitions jointly lead to a yearly rental increase of up to € 7.9 m. With CA Immo’s strong German development pipeline, which is progressing according to plan, the company is well on track to meet its financial goals for this year. Successful transformation of industrial brownfield brought new location on the Prague office map and paved the way for other developers as well, including Skanska’s own Port7 project that is in the preparation phase. High-quality green development awarded LEED Platinum for Core & Shell with 95 points, which makes the building the most sustainable office development in CEE and the second greenest office building in Europe.