S IMMO AG acquires office buildings and a hotel in the Czech Republic
Today, S IMMO AG signed and completed the acquisition of three office buildings and one hotel in the Czech Republic from CPI Property Group. The assets include the Mayhouse and Luxembourg Plaza offices in Prague, ZET.office in Brno, and the Courtyard by Marriott Prague City hotel. The four assets have a total value of EUR 167.7m and generate annual income of close to EUR 8.4m.
ZET.office in Brno is an industrial to office conversion that was completed in 2019 and has a gross lettable area of around 20,000 m² with annual rental income of EUR 2.4m. The building serves as headquarters for Kiwi.com, one of the most successful Czech start-ups. Built in 2019, the modern Mayhouse office is located close to the Pankrac district and public transport, with a gross lettable area of around 8,000 m² and rental income of EUR 1.2m per year. Luxembourg Plaza, which is a grade-A office sought after by international tenants like ExxonMobil, has a gross lettable area of around 23,300 m² and generates rental income of EUR 3.7m per year. The Luxembourg Plaza offices share the same building with the Courtyard by Marriott Prague City hotel, which comprises 161 rooms and is expected to generate income of approximately EUR 1.1m this year.
Herwig Teufelsdorfer, Member of S IMMO’s Management Board, commented: “We are happy to announce the further expansion of our office portfolio in the Czech Republic, which will contribute substantially to our future rental income. In addition, our hotel segment has been developing favourably since the pandemic and should continue contributing positively to our financial performance in 2023.”
The transaction qualifies as a related party transaction, as CPI Property Group holds 88.4% of S IMMO’s shares.