Europa Capital (“Europa”) has completed another acquisition for its pan-European investment fund, Europa Fund IV, acquiring Hadovka Office Park, Prague (“the Property”) for €43 million, reflecting a 9% initial yield. Hadovka is a 25,000 sq m office building situated in a prominent position on the Evropska corridor in Prague 6. The Property is 100% leased to a number of international and national tenants. Hadovka offers a high quality but affordable environment for its tenants and offers many on-site facilities such as a full restaurant, gym and café. Europa will invest significant capital into the asset and will be seeking to optimise the tenant mix going forward.
Resolution Capital Management Ltd (“RCM”), a specialist CEE Asset Management company owned by George Leslie, has co-invested in the project with Europa and will be providing asset management services to the Project. George Leslie commented: “I am delighted to conclude RCM’s first acquisition and I look forward to working with Europa on this project and growing our AUM platform going forward across the CEE region”.
German lender pbb Deutsche Pfandbriefbank provided a senior acquisition loan to the project. Charles Balch, Head of International Clients, UK & CEE at pbb, said: “We are pleased to have been able to support our esteemed client Europa Capital with a loan supporting this acquisition. This is following a number of successful financing transactions we have been able to conclude with them in CEE and elsewhere in the past. Our extensive experience in the CEE markets allowed us to understand the particular opportunity and hence offer attractive financing terms.”
Robert Martin, Principal and Head of Central Europe at Europa, commented: “This is an asset we have tracked over many years and, with the extension of the metro line bringing a significant improvement to the public transport in Prague 6, we believe this is a fully sustainable location where we can offer quality office space at affordable rents. The acquisition of Hadovka fits in with our strategy of acquiring high quality, but often capital-starved buildings, in strategic locations in European capital cities and also where we can add value with quality on-site management and building improvement. The pricing relative to the average Prague office market is very compelling”.
For further information, please contact: Gordon Simpson/Claire Scicluna, Finsbury PR: + 44 20 7251 3801 Robert Martin, Europa Capital Partners +44 02 7881 6800Walter Allwicher/Oliver Gruss, pbb, +49 89 2880-28787, +49 89 2880-28781
Europa Capital is an established real estate fund management group operating across Europe adding value through risk-based acquisition strategies and active asset management on behalf of its investors.
Since 1995, Europa Capital’s Principals have collectively raised 7 real estate funds and committed to over 90 transactions totalling some €9.0 billion across 18 European countries.
The Europa Funds benefit from Europa Capital’s established network of partners across Europe who co-invest in acquisitions made by the Europa Funds. These country and joint venture partner relationships in some cases extend back more than 20 years.
Further information can be found at www.europacapital.com.
About RCM: Resolution Capital Management (resolutioncm.com) is a value-add asset manager specialising in complex special situations. RCM provides workout, capital recovery and intensive value-add investment management services to financial institutions in relation to commercial real estate and other distressed or sub-performing assets in Europe’s peripheral markets. RCMs highly experienced project managers know how bring clarity to complex situations and promote orderly implementation of value-add undertakings according to good governance principles. RCM was established in 2009 by George Leslie.
About pbb Deutsche Pfandbriefbank: pbb Deutsche Pfandbriefbank (www.pfandbriefbank.com) is a specialist bank for commercial real estate finance and public investment finance. The bank’s regional focus is on Germany as well as on the United Kingdom, France, the Nordic countries and selected countries in Central and Eastern Europe. The bank plays an important role in supplying credit to the real estate sector; it supports the public sector with financing for projects and measures designed to enhance public infrastructure.
In real estate finance, pbb focuses on medium-sized to large-scale financings in less volatile property types, including offices, retail properties, apartments and logistics properties. The bank combines its local know-how covering the entire processing chain in the relevant markets, to form a European network which it uses to the benefit of its clients. In this way, pbb is in a position to support regional financing solutions as well as cross-border transactions – one of the few providers to do so. Moreover, pbb benefits from many years of experience in the structuring of financings. Thanks to its network of financing partners with different business profiles, pbb is therefore able to offer larger and complex financing to its clients.