KGAL has made its first investment in the Czech Republic, with the purchase of the DRN office building in Prague from the property’s developer, SEBRE.
Financial terms were not disclosed.
The purchase was made for a pan-European special real estate alternative investment fund (AIF) and follows the firm’s strategy of Europe-wide diversification across prime locations. The fund now holds real estate in seven European countries: Germany, Austria, Ireland, Hungary, the Netherlands, Poland and the Czech Republic. All of the assets are located in capital cities.
Commercial real estate is booming in the Czech Republic, according to research by Colliers International. The market saw a significant increase in volume in the second quarter of the year, with $3.3 billion. Office space, in particular, is dominating the CEE region, with a 43 percent year-over-year increase.
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