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).
"Our group has experience in all segments of construction, not just residential. We also build offices, logistics and shopping centres. The project in Líbeznice is an interesting opportunity that we want to take advantage of. It will raise the quality of the service offered in the village for local people," explained Marcela Fialková, Strategy Director of UDI Group. According to her, the group has contracted the land for development with a group of individual owners. "This will allow us to work on the project without being forced to tie up investment funds in the land while the development is being prepared and negotiated. We want to channel our own equity into the acquisition of large projects in the Czech Republic and abroad. Now is a very good time for acquisitions, there are dozens of interesting projects on the market and we want to be ready," she added.
The retail centre will have a total of 3,700 sqm of retail space divided into several smaller stores. The main tenant in the future will be a supermarket. The original owners of the land have already negotiated an agreement with the potential operator. It is also planned to build an adequate number of parking spaces. The construction is supported by the municipality.
The Group is currently considering acquiring another plot of land in Prague in a similar way without the need for equity. However, it is also preparing standard acquisitions. "Primarily in existing markets where we have already had time to get a feel for the processes, such as Poland. While we would only enter a new market in a time when Europe is dealing with economic problems in well-prepared projects that already have building permits, in existing markets we are considering acquisitions even at an earlier stage of preparation, which will allow for a higher yield," Fialková explained. Nevertheless, the group is now eyeing projects in, for example, Slovakia or Austria, countries where it has not yet been active.
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