The residential development market in the Czech Republic will be expanded by a new grouping of PPF and Karlín Group. Together, they will build residential projects in Holešovice and Libeň in Prague with a total investment value of CZK 4 billion, the company PPF announced.
PPF Group and Karlín Group intend to cooperate in the Czech Republic in the near future. They have now agreed to jointly develop residential projects in Prague. The agreement between PPF Real Estate Holding and Karlín Group currently includes the development of joint projects in the preparatory phase, with a total investment volume of CZK 4 billion.
The first of the joint investments between PPF Real Estate and Karlín Group, which already has a concrete outline, is the Simply Holešovice residential project near Bubny railway station. When completed, expected within a few years, Simply Holešovice will offer more than 200 apartments and rental units in this dynamically developing Prague district. According to E15, the new development partners will build more premium housing in the Na Košince area in Libeň. Both are locations that have changed significantly over the last twenty years, thanks to the Karlín Group, among other things. New modern residential and office districts are growing out of the original forgotten and decaying workers' and factory worlds.
“PPF Group is focused on balancing its investments and applies the same principle to its real estate business. After expanding our activities into the commercial property segment in Romania, we sought out other development opportunities. We opted for the residential property segment in the Czech Republic, where we have so far been rather cautious. The catalyst for our decision was an opportunity to work with Karlín Group and benefit from this well-established developer’s experience,” said Jiří Tošek, CEO of PPF Real Estate.
The new development partnership had been planned for a number of years with the late PPF founder Petr Kellner (who tragically died in 2021), according to a statement by Karlín Group co-founder and shareholder Serge Borenstein in the daily E15. "We talked about building something together. In the end, it was only after his death that we made our first deal last summer when a PPF company bought Forum Karlín," the daily quoted Borenstein as saying: "The multifunctional space was acquired by Prague Entertainment Group from Forum Karlín, which was owned by producer Serge Grimaux together with Borenstein and Jan Ludvík of the Karlín Group."
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