(Read more on the multifamily market.)

PRAGUE-A partnership that includes GE Capital Real Estate has acquired three residential portfolios in the Czech Republic from ICKM Real Estate for a price estimated at $138 million. GE is teaming with Czech developer Crestyl, which separately is buying ICKM, a builder of multifamily and other residential projects that has been active in its homeland since 1996.

“This is an excellent opportunity to broaden our exposure to the Czech residential market,” says Karim Habra, managing director for GE Real Estate Central & Eastern Europe, the division of Stamford, CT-based GE Capital orchestrating the Czech deal. GE Capital already has more than $1.4 billion invested in Central and Eastern Europe CRE, notes Habra, including a diverse Czech Republic portfolio encompassing industrial, office, residential and retail. The link with Crestyl makes GE’s position there even stronger, says Habra, whose group is also chasing CRE opportunities in Bulgaria, Hungary, Poland, Romania and Slovakia. GE made its first real estate investment in Turkey last year, another market where it plans to pursue future initiatives, says Habra.

The Czech joint venture, operating in conjunction with Cheyne Capital, is securing three ICKM construction projects under way that will generate more than 1,000 units. The pact also gives the group development rights for eight projects split between Prague and Central Bohemia that account for another 1,500 units. Ultimately, the joint venture expects to have a total residential portfolio in the country and neighboring Slovakia exceeding $690 million. GE has participated in another joint venture since 2004 that is developing 1,200 residential units in the Czech Republic, while Crestyl has 400 units of its own presently under way.

Headquartered in Prague, Crestyl has built a range of product types in the country, including shopping centers, office buildings and residential. Existing and future development value for Crestyl is estimated at $700 million, says managing director Giovani Lainati, who adds that the purchase of ICKM will help to diversify the portfolio thanks to the company’s vast residential experience. “The ICKM platform is strongly positioned to become a leader in providing both quality and value to the discerning residential buyer, a market that we expect will grow rapidly in the future,” says Lainati.

In the transfer of ICKM”s Czech portfolio and development pipeline, the joint venture was represented by lawyers from the global real estate group at Salans. A legal team from Lovells acted on behalf of the seller.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.