In a significant real estate development announced today, Erste Group is acquiring the Palladium shopping center in Prague through its Reico real estate fund. The Czech Office for the Protection of Competition (ÚOHS) is currently reviewing the transaction, though the financial details remain undisclosed.
The acquisition is being carried out through Project Aurelia, a newly established company under Erste Asset Management’s Reico real estate fund. The competition office noted that the merger “occurs mainly in the area of leasing non-residential premises in Prague,” and a decision will be issued within 20 days under a simplified procedure.
Currently owned by German company Union Investment, which purchased the property in 2015 for €570 million (approximately 14 billion Czech crowns at current exchange rates), the shopping center has been a lucrative investment. According to Hospodářské noviny, Union Investment was reportedly seeking €700 million (17 billion Czech crowns) for Palladium as of February this year.
Financial reports show the shopping center’s strong performance, with a profit of 107 million Czech crowns in 2023 and total revenue exceeding one billion crowns.
The five-story shopping complex located in Republic Square in central Prague stands on the site of the former Jiří z Poděbrad barracks. Construction began in May 2005, with the grand opening held on October 25, 2007. Today, Palladium houses 157 stores, 27 restaurants, cafes and bars, along with office spaces and a large underground parking facility. The total area of the shopping center spans 115,000 square meters.