The real estate fund Reico, part of the Austrian group Erste, is acquiring the Palladium Prague shopping centre. The Office for the Protection of Economic Competition has been assessing the transaction, reports E15.cz.
The shopping centre is currently owned by the German company Union Investment, which acquired it in 2015 for €570 million, almost CZK 14 billion in current conversion. Hospodářské noviny reported in February of this year that Union Investment is seeking €700 million, equivalent to CZK 17 billion, for this asset.
According to the 2023 annual report, available in the Collection of Documents, the business centre achieved a profit of CZK 107 million (€4.4 million). Net turnover exceeded CZK 1 billion (€41 million).
The centre is being bought by the newly founded company Project Aurelia, which falls under the Reico real estate fund of Erste Asset Management, part of the Erste Group.
The Office for the Protection of Economic Competition assesses the merger in a so-called simplified procedure and will issue a decision within 20 days. The office, which announced the assessment on its website, does not state the amount of the transaction.
