Austria’s largest listed property company, Immoeast, has sold a Prague office for E71.5m (£55m).
The 248,000 sq ft Andel Park B, the second largest building ever sold by Immoeast, has been sold to Swedish fund manager SEB Asset Management.
The deal reflects a yield of approximately 4.8%.
The Prague building has been bought by SEB’s Immobilien-Investment real estate fund after being bought by Immoeast in 2005.
Main tenants at the building are Johnson & Johnson, Hochtief, Whirlpool, Ferrero, UniCredit Leasing and Imperial Tobacco paying an average of E1.35/sq ft (£1/sq ft.)
Moving further east
Immoeast chairman Karl Petrikovics said the deal was part of the company’s strategy to move into developing markets further east.
‘Currently there is also the positive situation that the Central European markets are becoming increasingly attractive for real estate and pensions funds, while companies with the structure of Immoeast are shifting their focal point of investment to less developed markets located further east,’ he said.
‘This enables transactions that are highly lucrative for both parties.’
Petrikovics said Immoeast would be selling more properties throughout the year from its central Eastern portfolio as there was significant interest from open-ended funds and pension funds in the area.