The Austrian Erste Group is expanding its real estate portfolio in the Czech Republic: through its subsidiary Erste Asset Management, it is taking over the Palladium shopping centre at Republic Square in Prague.
The Austrian Erste Group is poised to carry out one of the largest real estate transactions of the year in the Czech Republic: through its subsidiary Erste Asset Management, it is purchasing the Palladium Praha shopping centre at Republic Square in the heart of the capital. The acquisition is currently under review by the Office for the Protection of Competition (ÚOHS). The parties involved did not disclose the purchase price.
According to the authority, the planned takeover primarily concerns the leasing of commercial space in Prague. The procedure is being conducted in a so-called simplified mode, with a decision expected within twenty days. The buyer is the specially established company Project Aurelia, which falls under the Reico real estate funds of Erste Asset Management.
Until now, the Palladium was owned by the German investor Union Investment, who acquired the centre in 2015 for €570 million – equivalent to almost CZK 14 billion. According to a report by Hospodářské noviny in February this year, Union Investment aimed to achieve around €700 million (approximately CZK 17 billion) from the sale.
According to the annual report published in the company register, the shopping centre recorded a net profit of CZK 107 million in 2023 on a turnover of over CZK 1 billion.
The five-storey shopping centre at Republic Square (Náměstí Republiky) in the centre of Prague was built on the site of the former Jiří of Poděbrady Barracks. Construction began in May 2005, and Palladium was officially opened on 25 October 2007. It currently houses around 160 shops as well as 30 restaurants, cafés, and bars. The total area, including office space and underground parking, amounts to 115,000 square metres.
