Property investment company S IMMO AG bought three Czech Republic offices and one hotel from CPI Property Group.
The Austrian-based company has acquired the Mayhouse and Luxembourg Plaza Czech offices in Prague, ZET office in Brno, and also the Courtyard by Marriott Prague City hotel. The four assets have a total value of €167.7million and generate annual income of almost €8.4million
ZET.office in Brno is an industrial-to-office conversion. It was completed in 2019 and has a gross lettable area of around 20,000 square metres. The annual rental income of €2.4million. It is the headquarters for Kiwi.com, one of the most successful Czech start-ups.
Built in 2019, the modern Mayhouse office is close to the Pankrac district. It has a gross lettable area of around 8,000 square metres and rental income of €1.2million per year.
Luxembourg Plaza is a grade-A office sought after by international tenants like ExxonMobil. It has a gross lettable area of around 23,300 square metres and generates rental income of €3.7million a year. They share the same building with the 161-room Courtyard by Marriott Prague City hotel, and are expected to generate income of approximately €EUR 1.1million this year.
Herwig Teufelsdorfer, a Member of S IMMO’s Management Board, says “We are happy to announce the further expansion of our office portfolio in the Czech Republic, which will contribute substantially to our future rental income. In addition, our hotel segment has been developing favourably since the pandemic and should continue contributing positively to our financial performance in 2023.”
The transaction qualifies as a related party transaction, as CPI Property Group holds 88.4% of S IMMO’s shares.
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