News Article Czech Republic investment KKCG lease Prague real estate REICO
by Property Forum | Investment

The Česká Spořitelna Real Estate Fund (Nemovitostní fond České spořitelny) is buying the Bořislavka Centrum shopping and office complex from KKCG Real Estate Group. With the acquisition, the fund has increased the number of buildings under its management to 21 and the value of its real estate portfolio exceeds CZK 38 billion, REICO announced in a press release. The parties didn't disclose the transaction price.

The complex consists of four interconnected buildings in the shape of irregular glass crystals. The total leasable area reaches over 40,000 sqm. Three-quarters of this is office space and the rest is retail space. The building is almost fully occupied, the main tenants include companies from the KKCG group. In addition to KKCG itself, the companies include Sazka, MND Group, Allwyn, KKCG Technology and KKCG REG. Volkswagen Financial Services and Pražská vodohospodářská společnost have also leased offices here on a long-term basis.

It also includes a shopping gallery with 60 shops. The construction of the complex took three years and it was opened in June 2021. The construction costs amounted to more than CZK 3.5 billion. The complex was built according to the architectural design by Aulík Fišer Architects.

"The acquisition of Bořislavka Centrum fits exactly into the strategy of the CS real estate fund (Nemovitostní fond České spořitelny) to buy the best buildings on the market leased to reputable companies," said Tomáš Jandík, Chairman of the Board of Directors of REICO, which manages the real estate fund.

Tomáš Jandík

Tomáš Jandík


Tomáš is the Chairman of the Board of Directors at REICO, an investment company of Česká spořitelna, a.s., member of Erste Group Bank AG. REICO was established in 2006 to run the ČS nemovitostní fond which is the largest and oldest Czech mutual real estate fund. In 2021 the company also launched a new REICO ČS LONG LEASE fund. In his position, Tomáš directs property business over both funds and carries joint responsibility of the investment company. Previously Tomáš worked at CBRE, DTZ (now Cushman&Wakefield) and EY. He is a graduate of the Humboldt-University in Berlin and College of Estate Management in Reading. Tomáš is a CFA charter holder and a member of the RICS. More »

According to Petr Pujman, CEO of KKCG REG, the sale fulfilled the group's business plan. "The valuation we have achieved is one of the highest in the domestic real estate market. KKCG Group and its subsidiaries will continue to control and use the buildings in the form of leases," said Pujman.

Part of the CS Real Estate Fund's strategy is to invest in properties that minimise environmental impact. The fund was established in February 2007 and is the largest and oldest Czech real estate fund. By the end of the year, over 103,000 shareholders had invested in the fund.