Grünwald near Munich, 18.09.2025 – KGAL Investment Management has completed the renovation and repositioning of the former “Charles Square Center” on Karlsplatz in the heart of Prague. The new atrium, additional renowned tenants and new gastronomic concepts contribute to the upgrade, as does elegant, contemporary branding. Under the new name “Karlák”, the inner-city office and commercial complex offers almost 20,000 square metres of rental space. Overall, retail rents have increased by around 30 percent since the purchase in 2022.
The value-add measures led to a higher-quality tenant mix with improved creditworthiness. While the office space on the upper floor with tenants such as Cisco Systems and Commerzbank was already in the premium segment at the time of purchase, the retail flair has now also been upgraded by modernizing the space and the tenant composition. A total of 1,200 square metres of space were newly let and the use was geared more towards “food and beverage”. In addition to international brands such as Paul and McDonald’s, local concepts such as Fruitisimo round off the offer.
A visual highlight of Karlák is the iridescent reflective ceiling soffit that covers the public space. As soon as they leave the subway, passers-by can see that the center has noticeably been renewed and upgraded. Inside, the high-quality design continues: the clear architectural unity of the atrium and the modern lighting create a harmonious overall picture. In addition, the City of Prague has also redesigned the adjacent Charles Square and intends to implement the second phase of the construction project in the coming years.
Ferdinand Geiger, Head of Technics & Specialists at KGAL, comments on the repositioning: “The active management of the portfolio is becoming increasingly important to investors. It is about making optimal use of potential and getting the best out of real estate. With these measures, we were able to position the property again in the core segment. This means that our investors benefit from a contemporary, high-quality property as well as a sustainable increase in income.”
The Karlák Center with the office, retail, gastronomy and healthcare use classes was acquired in 2022 for a pan-European special AIF from KGAL. Built in 2002, the property has an “Excellent” sustainability certification according to the BREEAM-in-use standard.
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