News Article Czech Republic investment Prague Raiffeisen Bank residential
by Property Forum | Investment

Czech company Jamp, which focuses on property rental, has bought the former headquarters of Raiffeisen stavební spořitelna in Prague. The company is now considering turning it into a residential property. Neither party has disclosed the purchase price. The group plans to make further property purchases outside the Czech market, Nikolina Peričová, the company's Managing Director, told the daily 

The former headquarters of Raiffeisen stavební spořitelna (RSTS) in Prague's Žižkov district is likely to be turned into apartments. "Jamp has been renting real estate for a long time. It intends to hold and lease the property in the long term," says Nikolina Peričová, the company's Managing Director, adding: "We are also considering the possibility of converting office space into residential space, as we perceive the Czech market to be overcrowded in office buildings." In addition to office and retail space, the property also includes apartments.

The property was up for sale because RSTS was moving into the building that is the headquarters of Raiffeisen Bank. According to experts, this is also a trend in recent years for banks and their subsidiaries in the Czech Republic to move to one location. "Apart from rationalisation, optimisation of operations and also higher efficiency of work, it is an effort to enable communication across all departments and teams," believes Zdenka Klapalová, Managing Director of Knight Frank. By relocating, companies are also saving money, for example on building management or energy costs. Neither party commented on the purchase price for the RSTS building. According to a source from the real estate market, the value of the transaction could range between CZK 500 million and CZK 700 million ( €20.54 million - €28.75 million).