Arcona Property Fund sells Prague asset 28% above valuation
28 May 2025
Arcona Property Fund N.V. (the Fund), a listed fund that invests in commercial real estate in Central Europe, has agreed the sale of its Palmovka Point office building in Prague, Czechia. The sale has been agreed at approx. EUR 5.48 million, 28% above the 31 December 2024 independent valuation of approx. EUR 4.26 million.
The office property, located at Na Žertvách 34 in Prague 8, comprises 2,264 sqm of modern office accommodation across ten levels, including two basement floors with 28 parking spaces. It was constructed in 1999 and at year-end 2024 was approximately 73% leased, with a WAULT of 2.46 years.
This sale reflects the Fund’s strategic policy of crystalising value at the peak of a property’s life cycle, with this building having demonstrated value growth of 52% since 2022. The 2024 external valuation reflected the potential for future residential redevelopment, a prospect identified by management that contributed to the attractive sales price. Completion of the sale is expected in early August.
The Fund will provide updates on the progress of further asset sales and the allocation of proceeds therefrom in due course.
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Arcona Property Fund sells Prague asset 28% above valuation 28 May 2025 |
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