On April 14th, BlackBird Real Estate (BBRE) completed the purchase of the Red Court office building in Prague’s Karlín district from J&T Real Estate CZ, fulfilling an agreement made in February 2020. While the transaction price has not been disclosed, the purchase represents BBRE’s most significant investment in the real estate market to date.

The Red Court building offers 7,500 square meters of office space and already has a tenant, Czechoslovak Group (CSG), and its subsidiaries. The headquarters of CSG, which is currently located in the nearby Butterfly Palace on Pernerova Street, is set to move into the Red Court building, along with several of its member companies operating in the aerospace and railway industries. The relocation is expected to take place in the spring of 2024.

David Chour, executive and financial director of CSG, explained that the move will enable companies that are currently spread across multiple locations in Prague or outside the capital to be housed in one location. This will make it more convenient to meet with foreign customers and partners. Excalibur International, CSG’s business agency, and DAKO-CZ, a manufacturer of railway brakes with a key production plant in Třemošnice, will be among the companies that will be located at the Red Court building.

This acquisition by BBRE is an example of the increasing interest in the Czech real estate market by foreign investors. Despite the ongoing COVID-19 pandemic, the market has remained relatively stable, and Prague has become an increasingly attractive destination for foreign investment. Additionally, the Czech government’s infrastructure investments, such as the expansion of the metro system, have made the city even more appealing to investors.

The purchase of the Red Court building by BBRE is also indicative of the growth of the Czechoslovak Group, which has become a significant player in the aerospace and railway industries. The relocation of its headquarters and subsidiaries to the Red Court building is likely to attract further attention from other companies in these industries, and the move will contribute to the continued growth and development of the Czech economy.

Article by Prague Forum