Prague – A significant real estate transaction is unfolding in the Czech capital, with domestic investment group Axelor reportedly close to acquiring two prime office buildings on Pankrác for a sum exceeding two billion Czech crowns (approximately €100 million). The buildings, known as Trimaran and Element, are currently owned by real estate funds managed by PIMCO, the investment arm of German insurance giant Allianz.
The potential sale signals a continued trend of robust activity in the Czech commercial real estate market, which saw record-breaking investment volumes last year. According to reports, the deal is in its final stages, with Axelor emerging as the sole remaining bidder after a competitive process overseen by CBRE.
“We are currently working on several transactions that we expect to complete in the first half of this year,” stated Fraser Watson, head of the real estate division of Axelor, in response to inquiries. “We cannot comment on specific properties, but we do prefer premium assets in major office locations and these properties fall into that category.” CBRE has not commented on the ongoing sale process.
The move represents another instance of a foreign investor reducing its presence in the Czech market, as favorable conditions encourage divestment. Zdenka Klapalová, managing director of consultancy Knight Frank, noted that PIMCO’s funds are capitalizing on a strong market environment. “There is still significant interest in high-quality properties in attractive locations, making this an optimal time to sell,” she said.
Details of the Properties
Trimaran, constructed in 2018, offers approximately 18,300 square meters of rentable space and features over 400 underground parking spaces. Current tenants include Cubex multifunctional center, Softec, and BigBoard. Element, completed at the end of 2018, was awarded the Building of the Year award in 2019 and provides 8,800 square meters of space. Scott.Weber Workspace, a flexible office provider in the Czech Republic, is among its tenants.
Both buildings are fully occupied and boast the highest level of LEED Platinum certification, signifying their commitment to environmentally sustainable and energy-efficient design. This certification is increasingly important to tenants and investors alike, reflecting a growing emphasis on responsible building practices.
Czech Real Estate Market Remains Active
If finalized, this transaction would represent another substantial investment by Czech capital and a sale from a foreign investor. Generali Real Estate Fund CEE, part of the Italian insurance group Generali, is similarly currently selling Šporkovský Palace. The influx of domestic investment underscores the strength and resilience of the Czech real estate sector.
Klapalová emphasized the advantages of local investors, stating, “Domestic capital is extremely active, has detailed knowledge of the local environment, and a long-term investment horizon.” Conversely, she believes the current situation is ideal for foreign investors to sell, benefiting from strong domestic demand. They can then free up capital and redirect it to Western European markets or other investment opportunities.
Czech investors dominated the real estate market last year, which experienced a record-breaking year. According to Petr Strýček, head of capital markets at iO Partners, “We experienced a historically record year, with investments in commercial real estate reaching €4.2 billion (approximately 102.5 billion crowns),” adding that the previous record of €3.4 billion was set in 2017.
The ongoing transaction involving Trimaran and Element further solidifies the Czech Republic’s position as an attractive destination for real estate investment, particularly for domestic players with a long-term vision. The deal also highlights the growing demand for premium, sustainable office spaces in prime locations like Pankrác.
As the deal progresses, market observers will be watching closely to see if it sets a fresh benchmark for commercial real estate transactions in Prague and signals a continued shift towards increased domestic investment in the sector.
The completion of this deal is anticipated in the first half of 2026, pending final due diligence and regulatory approvals. Investors and industry professionals will be keen to see how this transaction impacts the broader Czech commercial real estate landscape.
