ARTICLES LABELLED WITH TAG Czech Republic

The Prague City Council has approved the intention to launch a tender for a contractor to be entrusted with the transformation of the unfinished torso of the Prague 8 City Hall building. The Nová Palmovka Centre will become the new European Space Research Centre (EUSPA). The city is preparing this project for the Ministries of Transport and Finance, with which it is cooperating intensively.

ViaPharma has signed a 20-year lease agreement with the developer CTP for two Czech CTParks. CTP will prepare and hand over the premises, with a total area of almost 27,000 sqm and several specific modifications for the pharmaceutical industry, at the end of 2023.

Investment group DRFG has announced the acquisition of the new multifunctional development project Tři Dvory, with a market value of CZK 1 billion (€42.3 million). The project will be located on the site of a former royal mill on the outskirts of Újezd u Brna, in close proximity to the Stara Hora vineyards. Construction is due to start in spring 2024 and final completion is planned for spring 2026. 

One of the first private-sector affordable housing projects in the Czech Republic, Opatov II with 300 flats in Prague 11 by developer Sekyra Group, has reportedly been sold. The transaction has not yet been announced by the buying parties, but credible sources have confirmed it. The transaction was also confirmed by an advisor to the selling party. According to the information available, part of the flats are to be acquired by the insurance company Kooperativa from the Vienna Insurance Group and part should be bought by Dostupné bydlení České spořitelny (subsidiary of Česká spořitelna bank) as the company's second housing project in Prague. The transaction amount has also not yet been disclosed.

The Prague City Council has approved the investment preparation of the Beranka residential project in Prague Horní Počernice. The construction of 300 flats on an area of 63,000 sqm is being prepared under the management of the Prague Development Company (PDS). Architectural competition and tenders are being prepared. PDS plans to build between 2025 and 2030.

IRE-TEX Praha, which designs, manufactures, and supplies packaging solutions, is moving part of its production, warehouse and offices to new premises in the Fáblovka industrial zone in Pardubice from October 2023. Savills mediated the five-year lease of the entire 7,500 sqm hall. IRE-TEX has two more production halls in Pilsen.

UDI Group is adding another project to its portfolio. It will build a suburban retail centre in the village of Líbeznice north of Prague. According to the developer, a similar centre with a supermarket and several smaller retail units at one address with quality parking facilities is still missing in this village of 3,000 inhabitants. UDI Group estimates the investment at CZK 100 million (€4.2 million).

Although anti-pandemic measures were still lingering on the Czech retail market at the beginning of last year, an early return to normal was expected. However, the war in Ukraine has fundamentally influenced further economic development, especially in the countries of Central Europe, including the Czech Republic. The rapid rise in prices (inflation increased by 15.1% year-on-year) and energy expenses were met by a further decline in already weakened customer confidence. How did this affect shopping centres in the Czech Republic? And what is the current sentiment on the market not only among customers but also the retailers themselves? CBRE tried to answer these questions in its annual Shopping Centre Index analysis, which is complemented by two current surveys focused on the development of customer behaviour and expectations on the part of retailers.

Modern office buildings are an important part of ESG strategies for many companies. However, the real estate market in the Czech Republic is not yet fully prepared for the new ESG-related requirements. Even construction projects planned over the next few years will not resolve this issue, since meeting strict standards and certification requirements is both procedurally and financially demanding, Colliers reports.

CTP has signed deals totalling 96,000 sqm at five of its logistics CTParks across the Czech Republic since the start of 2023. A range of factors including rising domestic consumption, strong economic growth and the trend for ‘nearshoring’ have led to multinationals continuing to expand their footprint in the country and the wider CEE region.