REICO IS EAM continues its most dynamic year since its foundation, as the REICO Nemovitostní Fund expands its portfolio with a property in the heart of Prague. This marks the largest single-asset transaction ever recorded on the Czech market.
The historic Palladium building, located on Náměstí Republiky, offers nearly 60,000 sqm of space and combines a shopping centre with 17,500 sqm of office premises. The property also includes 866 parking spaces.
"We were able to purchase Palladium thanks to the trust of our more than 150,000 clients," said Dušan Sýkora, Chairman of the Board of Reico investiční společnost Erste Asset Management. "Due to its size, Palladium becomes a stabilising element of our fund, allowing us to achieve returns 1.5-2% above those of government bonds in the long term."
Palladium is a shopping destination in the city centre, attracting both locals and tourists. Thanks to its accessibility, it welcomes up to 60,000 visitors daily. Across its 180 retail units, it offers a range of brands and services and is home to flagship stores. One floor is dedicated to gastronomy, featuring over 20 restaurants.
Reico acquires the Palladium shopping centre from the German real estate investment manager Union Investment, which held the asset in one of its open-ended real estate funds since 2015. The financing of the acquisition was provided by a club of 4 banks led by Erste Group Bank AG for this €400 million loan. The other financing banks are Česká spořitelna, Komerční banka and Unicredit Bank.
