ARTICLES LABELLED WITH TAG Czech Republic

Despite the turbulent economic situation, banks are readily lending money to the commercial real estate segment, with warehouses being their top choice. The industrial investor Accolade is one of the most willingly financed warehouse portfolio holders in Poland. The company benefits from over €500 million in bank loans, 40% of which has been acquired since February 2020. At the same time, in the Czech Republic, the company has signed a loan agreement with a club of banks for €137.5 million. It is the largest ever loan provided for a single industrial rental property in the CEE region.

Due to the high prices of flats and houses, less availability of mortgages, extreme inflation, as well as the rising price of building materials and labour, people in the Czech Republic are now looking more for rental housing. The influx of refugees from Ukraine has also significantly increased the interest in renting. Under the influence of the enormous demand, rental prices are thus starting to reach the pre-Covida level, and in some places have already exceeded it. According to PSN, the availability of apartments is decreasing and the company is now preparing entire projects for rental housing.

The EU Space Programme Agency (EUSPA) could become the first tenant after the completion of a dilapidated building in the centre of Prague's Palmovka district. The Prague City Council plans to approve the terms of a key contract in June that will kick-start preparations for the completion and ensure the agency moves into the building. Deník E15 reports that Petr Hlaváček, Prague's deputy mayor for territorial development, confirmed the news.

Accolade Group has signed a €137.5 million (roughly CZK 3.4 billion) loan agreement. Thanks to this, the company will be able to finance the construction of a large multi-storey distribution centre near Kojetín in the Olomouc Region (located in the northeast of the Czech Republic) for the online store Amazon, writes the daily E15.

For the first quarter of 2022, the growth of the Czech industrial market and the recovery of industrial production were not stopped even by outages in the supply chains. This quarter also continued to see a sharp rise in rents in almost the entire country. The market for industrial premises will continue to grow, but over the year the full effects of the war in Ukraine will be felt and construction may slow down slightly, reports Colliers.

Industrial and logistics developer CTP reported like-for-like rental growth of 4.8% in the first quarter across its investment portfolio in European markets.

The Chamber of Deputies of the Czech Republic has decided on a one-year postponement of the effectiveness of part of the Construction Act. Instead of the planned central construction office, which the previous government of Andrej Babiš wanted, they are preparing the digitalisation of the process, the Czech Press Agency reports.

Prague 3 has spoken out against a development project planned by the developer UDI Group in Žižkov. The town hall is bothered by the size of the project. The developer accuses the authority of arbitrariness and threatens to sue. Martin Roman, an ex-CEZ Group boss, has a stake in the project, writes seznamzpravy.cz.

Investment group DRFG has acquired land near the main railway station in Olomouc (the eastern province of Moravia in the Czech Republic) in March this year and plans to build flats and commercial premises there. It plans to build a multifunctional residential complex with retail space and offices on this brownfield site with a total market value of CZK 2.6 billion and an area of 43,000 sqm by 2025. The architectural design of the complex is currently being finalised. DRFG Group informed about its new acquisition and construction plans in a press release today.

Passerinvest Group is starting the construction of a new seven-storey office building in Prague 4. The Roztyly Plaza building close to the bus terminal and metro station is to be completed in 2024, the developer announced.