The acquisition includes a total of five office buildings, with the NEMO fund directly purchasing four Prague office buildings from the seller: Smíchov Gate, Anděl 17, Idea Office Building, and Victoria Vyšehrad. The fifth building, Panorama Business Centre near the National Museum, was added to the ČMN portfolio. These administrative properties are located near key transportation arteries and commercial centers, offering excellent accessibility by both car and public transport. Due to their strategic locations and modern facilities, these properties meet the highest standards and offer tenants comfortable and representative spaces. In addition to office buildings, the ČMN group’s portfolio has expanded to include retail properties, which they see as having great potential. Specifically, these commercial properties cover an area of 72,000 m² and host a wide and diversified tenant base, including Ahold, Penny Market, OBI, and Tesco.
"We are thrilled to announce our largest acquisition in history and one of the biggest transactions on the Czech market this year. In recent years, the market has seen low transactional activity. While ČMN was eager to expand its portfolio, we hadn't found an acquisition truly worth it. We are all the more pleased that waiting for this transaction paid off. This significant acquisition aligns perfectly with our growth strategy and allows us to diversify our portfolio with quality and profitable properties. We believe these buildings will generate stable and long-term returns for our investors," said Radek Stacha, Chairman of the Board of ČMN.
The latest strategic property acquisition, financed by the German bank Helaba Landesbank Hessen-Thüringen from the NOVA Real Estate fund managed by the investment company REDSIDE, represents a significant milestone for ČMN and further strengthens its position in the emerging Czech commercial real estate market. "The Czech investment market remains one of the most attractive in Europe. We are pleased to provide financing for this significant transaction for our long-standing client ČMN," commented Jürgen Schleimer, Director of Real Estate Finance CEE at the financing bank Helaba.
The property portfolio includes modern and strategically located office buildings in Prague, boasting high occupancy rates and long-term lease agreements with renowned international and local companies such as Google, Hochtief, Cemex, and Mercedes Benz.
"We have carefully built and managed the real estate fund portfolio since 2016, and when most of our investors decided to liquidate their positions in the fund, it was our task to sell the properties as best as possible. Congratulations to Českomoravská Nemovitostní on this acquisition, and sincere thanks to their team and all the advisors on both sides for expertly handling the transaction process. Completing such an extensive transaction on schedule within half a year was a real challenge for everyone," said Rudolf Vřešťál, founder and Chairman of the Board of REDSIDE.
"We thank our client, REDSIDE, for the trust they placed in us to manage the tender and sales process on their behalf. Based on the results of a highly competitive tender process, we recommended to our client to proceed with the preferred offer from ČMN, which provided strong commercial terms with transaction certainty and knowledge of the existing portfolio," commented Stuart Jordan, CEO of Savills.
ČMN has long focused on investing in properties with high growth potential and stable cash flow. The company has a strong financial position and an experienced team of experts specializing in acquisitions, management, and development of commercial real estate. The acquisition was subject to approval by the Office for the Protection of Competition.
