Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Czech It Out: China Heads Further into Europe With $312M Prague Deal

2016/11/14 by Cheyenne Hollis Leave a Comment

The Florentinum office complex CEFC's latest foray into the Prague market

The Florentinum office complex CEFC’s latest foray into the Prague market and is already home to one mainland tenant, Bank of China

New York was too hot, London might be getting too cold, but it seems Prague was just right for the latest Chinese conglomerate looking for cross-border real estate investments.

Privately-held CEFC China Energy last week acquired the Florentinum office complex from private equity group Penta Investments, according to a statement by the Prague-based firm. Local news outlet CTK news agency reported that CEFC handed over $311.50 million for the nine-storey building.

The acquisition by CEFC, which is estimated to be among China’s ten largest private companies, is the latest in a string of real estate deals involving Asian investors over the last two months.

“We see Florentinum as an exceptional business opportunity and as an integral part of our strategy to establish our European headquarters in the Czech Republic,” Chan Chauto, President of CEFC China, said.

The complex boasts 50,000 square metres of offices and an additional 8,000 square metres of retail space. Current tenants include Bank of China, HSBC Bank and Czech financial player RSJ Investment Group. Located in central Prague, the building opened in 2014 and was Penta’s first real estate project in Europe. The Central European-focused firm invested a total of €200 million ($218 million) into the project.

For CEFC, the office building will join a growing Czech portfolio being assembled by the mainland firm, alongside hotels, an airline stake and a brewery.

Making A List, Czech-ing It Twice

CEFC President Chan Chauto has overseen the firm's continued expansion into the Czech Republic

CEFC President Chan Chauto has overseen the firm’s continued expansion into the Czech Republic

While CEFC isn’t a major player in outbound investment, it has carved itself a niche in Czech Republic where it was among the first mainland firms to pump money into the country. It continues to be a focal part of a second wave of investment president Xi Jinping revealed was in the works earlier this year during a state visit.

In 2015, the mainland energy and financial services player spent $78.46 million to acquire a 79.4 percent stake in Czech brewer Pivovary Lobkowicz, the fifth largest beer maker in the country. It also picked up a ten percent stake in Travel Service, operator of airline Smartwings and the second-largest shareholder in Czech Airlines, and purchased Le Palais Art Hotel in Prague for an undisclosed sum.

This year, the firm increased its stake in the Czech-Slovak banking and finance company, J&T Finance Group, to 50 percent. More recently, it received approval from the government to buy the Mandarin Oriental hotel in Prague.

CEFC’s founder and second-ranking tycoon on Forbes 40 under 40 list in 2016, Ye Jianming, followed the sporting lead of several other Chinese billionaires, purchasing a stake in local soccer team Slavia Prague. Ye also bought the team’s stadium, spending an initial €31.1 million (US$35.5 million) while promising to invest another €49.6 million ($51 billion) in rebuilding the facility.

Europe Catches on With Asian Players

Earlier this month, GIC jumped head first into Central Europe acquiring Czech-based P3 Logistic Parks for €2.4 billion ($2.6 billion) from TPG Real Estate and Ivanhoé Cambridge. The deal became the largest European real estate transaction in 2016 to date with the Singapore-based firm acquiring 163 buildings in 62 locations across Europe. P3 has 15 locations in the Czech Republic and 16 other logistics facilities in neighboring countries.

In October, GIC also partnered with global student accommodation specialists GSA to invest in 2,500 beds’ worth of student housing in Germany.

The Singaporean sovereign wealth fund has recently been joined in Europe by its mainland counterpart. In September, CIC teamed up with private investment manager AEW to buy two French malls for €188 million ($206 million) from Grosvenor Europe, in a story first reported in Mingtiandi.

Related Stories

  • CEFC Europe Deals Hit the Wall as Investment Firm Defaults on $327M in BondsCEFC Europe Deals Hit the Wall as Investment Firm Defaults on $327M in Bonds
  • ESR Unit Advises Samsung on €132M Buy of AEW Czech WarehouseESR Unit Advises Samsung on €132M Buy of AEW Czech Warehouse
  • CEFC Chief Invested Billions in Real Estate – Now Said DetainedCEFC Chief Invested Billions in Real Estate – Now Said Detained
  • LaSalle IM Teams with Korea’s NPS for $64M Prague Office AcquisitionLaSalle IM Teams with Korea’s NPS for $64M Prague Office Acquisition

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: CEFC, Czech Republic, daily-sp, Europe, Prague

Value-Add Forum

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Altus Cashflow Ebook

Get Mingtiandi Delivered

Office Investment

MTD TV

Proptech Forum: Logistics Tech

Logistics Experts Reveal How Tech Is Reshaping Asia’s Distribution Centres

MTD TV Panel: Vietnam Logistics Real Estate Gains Favour With Investors in 2020

More MTD TV Videos

Latest Stories

goodwin gaw

Gaw Capital Said Planning US SPAC and More Asia Real Estate Headlines

quayside hong kong

IWG Opens in the Quayside in Third Takeover of Hong Kong WeWork Location

JLL Alex Barnes

Hong Kong Office Vacancy Hits 9.3% as Deutsche Bank, AIA Surrender Space

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

IWG Opens in the Quayside in Third Takeover of Hong Kong WeWork LocationIWG Opens in the Quayside in Third Takeover of Hong Kong WeWork Location

Hong Kong Office Vacancy Hits 9.3% as Deutsche Bank, AIA Surrender SpaceHong Kong Office Vacancy Hits 9.3% as Deutsche Bank, AIA Surrender Space

Hines Ramps Up APAC Presence With New Hires in Japan, South KoreaHines Ramps Up APAC Presence With New Hires in Japan, South Korea


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team