Union Investment has announced it has profitably sold Palladium in Prague to a fund belonging to Reico Investicni Spolecnost, a member of the Erste Group.
According to Union Investment, “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.”
EUR 400 million in financing for the acquisition was provided by a syndicate of four banks led by Erste Group Bank as coordinator and facility agent.
The property was acquired for UniImmo: Deutschland fund in 2015. It has a total usable floor space of around 60,000 sqm, of which around 17,500 sqm is office space. The property offers over 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 Namesti Republiky square with direct links to the main shopping area between Prague’s Old Town and New Town, it attracts over 14.8 million visitors per year.
“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,” commented Union Investment Senior Investment Manager Retail Laura Roll. “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.”
Clifford Chance advised Union Investment on the sale, Wilsons advised the buyers, and White & Case advised the banks involved (as reported by CEE Legal Matters on November 27, 2025).
Image source: palladiumpraha.cz