Skanska sells Corso Court office building in Prague to Invesco Real Estate
November 2, 2015
Skanska has sold Corso Court, its office project in Prague. The building has been purchased by global investment manager Invesco Real Estate on behalf of one of its German separate account mandates. This is Skanska’s second investment in the Czech capital to be acquired by Invesco Real Estate.
Corso Court is a modern class-A office building newly constructed in Prague’s Karlín business district. It was commissioned for use in July 2015 and now joins Invesco Real Estate’s portfolio.
“Our successful acquisition of Corso Court, on behalf of one of our long-standing German separate-account clients, confirms the continued demand from institutional investors for good-quality, core assets let to strong tenants in the Czech Republic. The timing was optimal for us to acquire the asset and having a local presence, deep local-market knowledge and more than a decade of investing in the region means IRE is well placed to undertake such transactions,” says Tomáš Pícha, Director, CEE Transactions at Invesco Real Estate.
“The sale of the Corso Court office project is our second transaction conducted together with Invesco Real Estate in Prague’s office market. We are pleased that global players, active in the international real estate market, appreciate the high quality of our office products and return to Skanska when looking for new opportunities. We are seeing increasing interest in the CEE office market and the Czech capital is still the first-choice location for investors exploring this part of Europe in search of profitable office real estate deals,” says Adrian Karczewicz, Transaction Director at Skanska Commercial Development Europe.
The Czech Republic currently leads the CEE region in terms of commercial real estate transactions, with a ca. 47% share of the total volume, according to JLL . Factors such as the supportive financial environment and yields, which are more favorable compared with those in western Europe, allow the Czech Republic to increasingly reinforce its investment attractiveness. New office projects developed in the country’s biggest cities, such as Prague, are a response to the growing demand for office space, driven especially by the business services sector. Many international companies decide to open their business centers here because Prague offers a stable macroeconomic situation, high-quality, multilingual employees and well developed infrastructure . ABSL’s forecasts for the sector are optimistic. In the next five years, the Czech Republic is expected to see employment growth of 16% per year . Skanska works together with the business services sector, which is one of the main occupiers of the company’s developments in the CEE region. This experience enables the company to provide modern and attractive office projects such as the one recently sold in Prague.
The Corso Court office project, designed by the world-class architect Ricardo Bofill, offers its tenants modern, unique and efficient office space. It is located in the heart of Prague’s evolving Karlín business district. This seven-story building provides 17,200 sqm GLA and is already 100% leased, with Expedia and Skanska being the main tenants. Apart from its location and good access to public transport, Corso Court offers a spacious and impressive atrium and a beautiful public garden, where numerous features such as Wi-Fi and charging points can be used, and chess and table tennis can be played.
Corso Court has been designed with a focus on creating workplaces that foster innovation and productivity. It features a number of sustainable energy-saving and innovative solutions and expects to receive LEED Platinum certification. On the transaction Invesco Real Estate was advised by Colliers International, and Cushman & Wakefield acted as the exclusive agent to Skanska. Legal advisers for the transaction were Wilson and Partners for the purchaser and Dentons for the seller.
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