pbb funds €43m Europa purchase of Czech offices

pbb Deutsche Pfandbriefbank has financed Europa Capital’s €43m purchase of Hadovka Office Park in Prague, Czech Republic.

The German bank provided a senior loan to London-based fund manager Europa, which made the purchase through its Europa Fund IV.

“This is following a number of successful financing transactions we have been able to conclude with Europa Capital in Central and Eastern Europe and elsewhere in the past,” said Charles Balch, head of international clients, UK & CEE at pbb.

“Our experience in the CEE markets allowed us to understand the particular opportunity and hence offer attractive financing terms.”

Europa has raised about €600m of equity for Europa Fund IV, of which €450m has been committed in 15 deals across eight countries.

Robert Martin, head of Central Europe at Europa, said: “The acquisition of Hadovka fits in with our strategy of acquiring high quality, but often capital-starved buildings, in strategic locations in European capital cities and also where we can add value with on-site management and building improvement.”

Europa has raised seven real estate funds since 1995 making more than 90 deals totalling around €9bn in 18 countries.

The firm recently entered a £95m joint venture with Ediston Real Estate to build a portfolio of retail warehouse and office properties in the UK. In April, Europa bought a portfolio of three office buildings in central Budapest, Hungary.

In its latest acquisition, Europa co-invested alongside Resolution Capital Management, which will be providing asset management services to the project.