News Article bond Crestyl Czech Republic development financing mixed-use Prague retail
by Property Forum | Retail

Local developer Crestyl, through its subsidiary Savarin p.l.c., is issuing five-year zero-coupon bonds with a total nominal value of €84 million (CZK 2.2 billion) this week, with the possibility of increasing to CZK 3.3 billion. The purpose of the issue is to finance the Savarin project, which is being developed in the vicinity of Prague's Wenceslas Square and Na Příkopě Street. The multi-purpose complex also includes space for the installation of Alfons Mucha’s Slav Epic. The issue was prepared by J&T Banka and the bonds are also traded on the regulated market of the Prague Stock Exchange.

"As part of the preparation of our Savarin project, we decided to increase our stake in the project and buy out the initial investors who helped us get started. In the meantime, the whole project acquired real contours, a new look and moved on to the next phase. We have prepared a place in it for the placement of the Slavic Epic, which we are really proud of and appreciate this opportunity. In the coming months, we plan to begin the reconstruction of the historic palace, "says Omar Koleilat, CEO of Crestyl Group. "By issuing public bonds, we are now giving everyone the opportunity to directly contribute to this project."

The bonds are also intended for small, non-professional investors. The nominal value of the bonds is CZK 50,000, their issue price is 71.288% of the nominal value as of the issue date, maturing in January 2026. The annual yield thus corresponds to 6.9%.

The Savarin project, designed by contemporary architecture and design icon Thomas Heatherwick and his studio, comprises a careful restoration of the current historical buildings and the establishment of an entirely new public space with greenery, an open area in the inner courtyard and commercial areas. Savarin consists of four linked individual parts, each of which will have its own character and specific use.

The building facing Jindřišská Street will offer its own green inner courtyard and several restaurants. The second part with the entry from Panská Street will feature the Time Out Market with approximately fifteen different food services. A passage with shops and services will be situated in the block of three buildings facing Wenceslas Square. These three parts will lead the visitors to the very heart of the project – the new public space with a park and the carefully restored building of the historical riding school and the Savarin Palace by Kilian Ignaz Dientzenhofer.

The historical buildings facing the street will naturally be preserved and comprehensively restored, not only their facades. The whole inner courtyard will be opened to the public – in addition to the Franciscan Garden, another space suitable for relaxation and leisure time with newly planted greenery, benches, fountains and drinking fountains will appear near Wenceslas Square. Publicly accessible roof gardens and terraces will offer views of the Prague panorama. The newly accessible passages will enable easy and free passage through the previously inaccessible centre of the city. They will be joined to the current passageways and interconnect the streets around the whole block. The passages will have no doors – everything will be accessible barrier-free and even a new direct barrier-free entry into the Můstek underground station will be established here.

The developer announced on 11 January that it presented an offer to the Capital of Prague for the installation of Alfons Mucha’s Slav Epic in the Savarin project for an estimated period of 25 years. Savarin has been chosen by the Prague Institute of Planning and Development as one of the most suitable places where the canvases could be installed, which would finally fulfil the wish of Alfons Mucha. Moreover, the Mucha Foundation would incorporate a selection from a family collection of the lifelong work of one of the most famous Czech artists into the permanent exhibition. Crestyl offers the construction of all the spaces for the exhibit and their equipment free of charge within five years.

The exhibition with an area of 3,500 sqm would be entered through the newly created gardens and the listed building of the historical riding school. The exhibition space of the epic and of the life’s work of Alfons Mucha will be 10 metres high, which will enable the presentation of the Slav Epic in a uniform visual view according to the original intention of Alfons Mucha. Then it will all be enhanced by the entry hall into the gallery, technical facilities, a shop with souvenirs related to Alfons Mucha and a space for the gathering of groups for guided tours.