Thursday, 20 November 2025
Union Investment has profitably sold Palladium in Prague, which it had acquired for UniImmo: Deutschland in 2015, to a fund belonging to the Czech REICO Erste Asset Management. The sale marks the largest property transaction ever carried out on the Czech market and is also the biggest single-asset retail transaction in CEE so far in 2025. The sales price is above the latest valuation of the property and significantly above the purchase price at the time.
“Palladium is a success story for the UniImmo: Deutschland fund, from its acquisition to its successful exit after a holding period of around 10 years. The timing of the sale at the beginning of the new market cycle is perfect. The property has generated positive long-term cash flow and a high-level of income stability for the fund over one decade and achieved high value gains.,” says Laura Roll, Senior Investment Manager Retail at Union Investment.
“We have now successfully capitalised on the renewed interest in dominant and high-quality retail assets in Europe to achieve a record high sales price, which we will use to further develop the fund’s portfolio through targeted reinvestments in European gateway cities,” says Henri Eisenkopf, Director Transaction Shopping Places at Union Investment. In line with the fund’s strategy, investments in retail, hotels, logistics and office properties are being examined in particular.
Palladium, has a total usable floor space of around 60,000 sqm, of which around 17,500 sqm is office space. The property offers above 800 car parking spaces in an inner-city parking garage. The 180 shops are predominantly occupied by strong local and international brands, including numerous flagship stores. Thanks to its easy accessibility in a central location on Náměstí Republiky square with direct links to the main shopping are between Prague’s Old Town and New Town, the iconic shopping centre attracts over 14.8 million visitors per year.
Union Investment was advised on the transaction by CBRE, Clifford Chance and TPA. The buyer was advised by Willsons, ASB, Savills and Cushman and Wakefield.
