KGAL Investment Management has completed the repositioning of the former Charles Square Centre in the heart of Prague. Under its new name, Karlák, the inner-city office and retail complex is offering almost 20,000 sqm of leasable space.
The value-add measures have resulted in a higher-quality tenant mix with improved credit ratings. While the office space on the upper floor was already in the premium segment at the time of purchase, with tenants such as Cisco Systems and Commerzbank, the retail area has now also been given an added flair. 1,200 sqm has been newly let, with the use geared more towards food and beverages. Alongside international brands, Paul and McDonald’s, the tenant mix includes local concepts such as Fruitisimo.
The new atrium, additional tenants and new F&B concepts contribute to the upgrade, as does updated branding. Moreover, retail rents have increased by approximately 30 per cent since the property was purchased in 2022 for a pan-European institutional fund managed by KGAL. Built in 2002, the property has been awarded an “Excellent” sustainability rating under the BREEAM In-Use standard. The city of Prague has also redesigned the adjacent Charles Square, with plans to implement a second construction phase in the coming years.
Photo source: KGAL/Realbrand
