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BA-CA Real Invest sells real estate package worth EUR 200 million

  • Seven office properties in Prague and Warsaw sold to Pramerica Real Estate Investors for around EUR 198 million
  • Investors in closed-end real estate funds earn higher returns than expected

BA-CA Real Invest has sold a package of seven office properties in Prague and Warsaw for more than EUR 198 million to a fund of the global company Pramerica Real Estate Investors. Some of the real estate was owned by BA-CA Real Invest while other buildings were taken from closed-end real estate investment funds. BA-CA Real Invest successfully leveraged the high demand of international investors for real estate in Central and Eastern Europe (CEE). The investors of BA-CA Real Invest will earn between 110 and 160 percent of their invested capital, in addition to the regular income from rental receipts. Consequently, clients have ended their interest in the real estate investments "Prague I", "Prague II" and "Prague & Warsaw" launched since 2000, mostly with a double-digit return. This means that based on performance BA-CA Real Invest is the number one firm in Austria in the segment of closed-end real estate funds. 

"Our sale was by far the deal of the year on the Prague real estate market", said Karl Derfler, Managing Director of BA-CA Real Invest. Prague and Warsaw are "must haves" for many international investors, and packages comprising several real estates are particularly in demand. What is more, returns on real estate in CEE are increasingly closing in on Western European levels. Derfler: "Picking the right time is thus instrumental in ensuring a successful sale. But our package was certainly one of the most interesting throughout the CEE region as well."

The bidding procedure was conducted by CB Richard Ellis. The portfolio comprises around 63,000 square metres of utilisable area, with tenants including ABB, Ericsson and Ceska Sporitelna.

BA-CA Real Invest is the competence centre of Bank Austria Creditanstalt (BA-CA) for real estate investments. The company relies on many years of know-how in establishing open- and closed-end real estate funds and investments as well as investment property, and holds top spot on the podium in the local retail market with the open-end real estate fund "Real Invest Austria".

Pramerica Real Estate Investors numbers among the largest real estate investment managers worldwide, managing real estate assets worth EUR 25.9 billion (as of 30 September 2006). Pramerica is the real estate subsidiary of the financial and insurance group Prudential Financial, Inc., USA (PFI)* (Assets under Management in the group: approximately EUR 545 billion, as of 30 September 2006) and for over 35 years has offered a broad range of investment services and real estate investment products. The investment strategies of Pramerica are implemented by local branches in the most important investment countries with over 300 real estate specialists in 17 locations on three continents. Pramerica most recently cropped up on the Austrian radar when buying the headquarters of the Austrian Trade Union Federation (ÖGB) in Vienna, Schottenring / Hohenstaufengasse.
Enquiries: Bank Austria Creditanstalt Press Office
Christian Kontny, Tel: +43 (0)5 05 05 52483; e-mail: christian.kontny@ba-ca.com

* Prudential Financial, Inc. of the United States of America (PFI) is not affiliated in any manner with Prudential plc, a company registered in the United Kingdom.