Erste Group's Reico Fund to acquire Prague shopping centre

Austria’s Erste Group, through its real estate fund Reico, is acquiring the Palladium shopping centre in Prague. 

Palladium, Prague

The transaction is currently under review by the Czech Office for the Protection of Competition (ÚOHS) and a decision is expected within 20 days.
The acquisition is being facilitated by Project Aurelia, a newly established real estate company operating under Reico's Erste Asset Management fund. While the official purchase price has not been publicly disclosed, industry sources suggest the deal could be substantial. 
Union Investment, the current German owner, acquired Palladium in 2015 for €570 mln. Earlier local press reports indicated that Union Investment was seeking around €700 mln for the asset.
Opened in October 2007, the five-storey Palladium shopping centre is situated on Republic Square (Náměstí Republiky) in the heart of Prague. Built on the site of historic military barracks, the complex boasts a total area of 115,000 m2. It houses a diverse mix of approximately 160 stores, 25-30 restaurants, cafes, and bars, along with office spaces and an underground parking lot with 700 spaces.
Palladium has consistently demonstrated strong financial performance. In 2023, it achieved sales exceeding CZK 1 bn (€41 mln) and recorded a net profit of CZK 107 mln (€4.4 mln).
Reico, which manages over CZK 40 bn (€1.6 bn) in assets across Central Europe, is a wholly-owned subsidiary of Erste Asset Management, part of the broader Erste Group.