ČMN becomes majority owner of Churchill Square

Českomoravská nemovitostní has acquired a quarter stake in the Churchill Square office complex in Prague near the main railway station for CZK 1 billion (€41 million). It has thus become the majority owner of the complex.

The asset was previously divided in half between Českomoravská nemovitostní (ČMN) and the Lebanese holding CFH. ČMN has now bought a quarter of the shares for around CZK 1 billion (€41 million) and has thus become the majority owner of the complex.

"The transaction is part of the agreement we entered into with CFH three years ago when we established a joint venture in connection with the purchase of Churchill Square from developer Penta Real Estate. According to the agreement, by the end of 2024 we will completely buy out our partner and become the sole owner of this lovely complex," Josef Eim, co-owner of ČMN.

Developer Penta Real Estate built the office centre on the border of Žižkov, Vinohrady and the main railway station at the intersection of Italská and Seifertova streets. The main tenants are the consulting company Deloitte and the betting group Fortuna. In total, around 2,000 people work in the offices there. When the two co-owners bought the property near Churchill Square from the Penta Group in 2020, they paid CZK 4 billion (€163.9 million). The current price for a quarter of the building therefore roughly replicates the original value.

"We expect the Czech real estate market to recover as interest rates fall. We are therefore already actively evaluating potential acquisition opportunities. In Prague, which is in great demand among creditworthy tenants from multinational companies, we want to continue to buy top-class office buildings," added Josef Eim.