YIT has managed to successfully overcome the unexpected challenges represented by the coronavirus pandemic and rates the year 2020 as successful.

They sold almost 300 apartments in Prague, achieving a turnover of almost CZK 2 billion. They still hold their position among the top five residential developers. They are preparing new projects in Prague 11, 12 and 15 and also in Pra-
gue 9, where they want to commence construction of the Lappi Hloubětín complex. This year, they also count with the final building approval of three projects. “What I consider the greatest success last year is that, despite difficulties associated with the pandemic, we led the planned projects to final building approval and sold all apartments from within the projects. This year will represent a big test for the entire market yet again and not only the development market. Still, we have confidence in ourselves and would be happy to offer 400 to 650 apartments, depending on how we manage to obtain building permits for specific projects. We are not slowing down in the preparation of our rental portfolio and negotiate with large local and foreign investment groups,” says Marek Lokaj, the new Managing Director at YIT Stavo, and adds: “As a result of the epidemic, we were forced to switch more to the use of online communication tools in the Spring time but it did not have a major impact on the residential market and on our strategic planning. An insufficient supply of apartments persists and the pressure from this huge demand motivates us to continue in the preparation of new projects and further acquisitions. The problem, however, lies in the lengthy permitting procedure, so we would welcome a simplification of conditions for development.”

The construction of the Suomi Hloubětín project continues

At the end of last year, the Suomi Hloubětín residential district, which will comprise almost 900 apartments, had three newly approved stages, namely Salo, Porvoo and Pori. The ninth phase of Vantaa is now under construction and will be completed in the autumn. The construction of a nursery school designed by the Finnish architect Jyrki Tasa, was commenced at the beginning of the year. In the vicinity of the growing complex, YIT is preparing the Lappi Hloubětín project, which is to connect to Suomi Hloubětín and form a unified unit with a total of approximately 1,200 apartments, including those intended for rental.

The first stage of the Ranta Barrandov project with 141 apartments was completed at the end of last year and work on the second phase is in progress. The second phase includes 118 units and should undergo final building approval by the end of this year. Another project under construction is the Parvi Cibulka residence, where the conversion of the former Meopta factory creates 150 original apartments. The architectural design of the reconstruction comes from the renowned architect Jakub Cigler. The rough structure is expected to be completed this April; by the summer of 2022, the individual units are to gradually undergo final building approval. In January this year, YIT launched the new Koti Libeň project with 140 energy efficient apartments. The rough structure should be completed in December 2021 and overall completion by the end of 2022.

The year 2021 in the spirit of new trends

The main strategic activity of YIT will continue to be the construction and sale of apartments for personal ownership. But the developer plans to focus more on rental housing this year. Therefore, YIT wants to designate about 200 new units for rent. In the future, there will be up to 500 such apartments. Another area that will be one of the priorities will be prefabrication. “We see enormous potential here. Thanks to the prefabricated parts we will achieve an even better execution of our projects and a significant reduction in construction time. At the same time, it will allow us to address labour shortages in the construction industry better. The first prefabricated bathroom was already a part of a show apartment in the Pori stage in Suomi Hloubětín. We also want to include them in the Lappi Hloubětín project,” explains Marek Lokaj. One of the main strategic priorities of the entire YIT Group in the field of ecology and sustainable development is the commitment to halve the company’s carbon footprint by 2030 as part of the company’s construction and development activities, this being from the level of 2019.

PR

TBG METROSTAV is one of the largest concrete producers in the Prague region and operates four concrete plants.

We were talking to Ing. Jakub Šimáček, the Director of TBG METROSTAV, about the current situation in Prague’s development and the future of concrete plants in the capital.

You are the company director of three plants: TBG METROSTAV, TBG Pražské malty and Pražské betonpumpy a doprava. Can you introduce them in more details?

TBG METROSTAV, which is one of the largest concrete producers in the Prague region, where it operates four concrete plants, has the longest history. TBG Pražské malty and Pražské betonpumpy a doprava are subsidiaries and are engaged in the production of mortars and cast floor mixtures, respectively the pumping of concrete. The division, into three companies, has proven practical over time – each company focuses on ensuring that the work results are of the highest level. At the same time, all three entities work closely together and as a group supply customer with professional services and quality products.

Last year was difficult. What was it like for your companies?

The beginning of last year was very similar to previous years. But then the first wave of the pandemic came out of nowhere and construction in Prague ceased. There were several reasons. Borders were closed, foreign workers were absent on construction sites, the operation of offices was reduced and some investors were thrown out of balance. Moreover, in recent years, there hasn’t been any large infrastructure contract under construction in Prague that would help overcome fluctuations in commercial investment. The construction of administrative buildings and hotels was almost halted within the market and the commencement of apartment buildings was postponed by several months.

How did you respond to the sudden drop off in demand? Did you have to lay staff off?

We didn’t have to lay staff off. Our goal was to retain jobs, because we knew that construction would start again and then we would be needing staff. Our people are highly qualified and hardworking and it would make no sense at all to lay off a third of them and then look for new people with difficulty and to have to train them as well. We managed to apply cost-saving measures and reduce wage and fixed costs accordingly. In this way, we kept the company in shape during the summer and were prepared for the autumn start of the postponed constructions.

So how did 2020 turn out for your companies?

In the end, well. Although we didn’t manage to compensate for the production outage from the summer months, even with higher production at the end of the year, our results remained only slightly behind the original plan. What I consider extremely positive is the fact that we managed to reaffirm the good name of our company and the high quality of our services, especially thanks to the retention of experienced employees with their diligence and commitment.

What do you think 2021 will be like?

I presume that it will continue to be dominated by apartments in Prague. The interest in buying one’s own apartment is, despite high prices, still extraordinary. It also seems that the construction of housing blocks for rental accommodation will begin. Investment in administrative buildings will probably stagnate a bit this year, but I assume that from next year, this segment will also start gradually going again. Based on my experience, I don’t think that home office is a permanent solution, because only a few employees are able to achieve full work commitment and high performance at home – without social ties, it just doesn’t work. The construction of administrative buildings will continue after the temporary decline. This can also be seen in the just launched Masaryk Centre project by Penta Investment, where we currently supply our colleagues from Zakládání staveb and Zakládání Group with concrete for the foundation of the building and will supply the concrete workers of Metrostav a.s. who are starting to build monolithic structures. We are waiting to see if the next stage of the Prague metro will be launched. In recent years, it is the only large transport contract in the capital – and Prague would certainly deserve such a major investment in its development.

What new innovations have you prepared for your clients?

We launch a new product basically every year. However, we do not want to just come thoughtlessly with some mixtures that have no application in the market, or that only promote a standard product under a flashy name. Each of our branded products bestow customers with certain benefits or is part of a systematized solution. For example, fresh MALMIX mortars – a proven solution where we supply fresh mortar to construction sites every day, ready for immediate processing. Without any further adjustments. When a client orders MALMIX, he knows that the mortar is top quality, a fine structure and will be on site in time and in the right quantity. The same goes for PERMACRETE concrete. With this product we responded to the non-systemic addition of crystallizing additives to fresh concrete under the pretext of improving the watertightness of white tubs, or even to improve protection against radon, erratic currents, etc. PERMACRETE is a special concrete for white tubs designed in accordance with German and Austrian standards. It develops a minimum of hydration heat and, thanks to its composition, significantly reduces the formation of cracks. This solution is cheaper than using crystallizations and has been tested successfully on dozens of buildings.

These are proven products. How about new ones?

We always put the client above everything we do. We constantly work on modernizing and developing new products. This year, we are planning to present an interesting
TERRAFLOW filling material, which is suitable for filling construction pits around pipelines or filling joints around the foundation of the building, etc. We are also constantly improving our branded products, especially our most durable and strongest product TOPCRETE, an ultra-high-quality concrete (UHPC), which has incredible potential for renovations, bridges, footbridges as well as architectural use. And we must not forget the protection of the environment and long-term sustainability. We also develop concretes from recycled aggregates, but no major use can be considered just yet. Current regulations, logistics and achieved parameters of concrete produced in this way do not allow for the fully-fledged replacement of ordinary aggregates, but certain types of structures can be made from recycled aggregates.

And what about your concrete plants? How do you deal with the increasingly stricter environmental regulations and restrictions?

As I have already mentioned, we have four concrete plants, which are conveniently located throughout Prague. In the north we have the Libeň concrete plant, in the west Radlice, in the south Písnice and in the central, slightly eastern area, the Rohanský ostrov concrete plant. These locations are advantageous for our efficient logistics, because we always choose the nearest establishment for the supply of material for a particular construction site, so that the concrete mixers do not unnecessarily burden the already complicated traffic in Prague. What comes as a matter of course is wastewater management, the recycling of residual concrete, waste management, dust filters, landfill sprinkling, etc. However, the fact that two of our facilities have a dock for cargo ships is also related to ecology. We use ecological shipping to the maximum extent possible. As a result, the Libeň and Rohanský ostrov concrete plants fundamentally help reduce the amount of lorry traffic in the metropolis. Thanks to their direct connection to the river, all underground stages, road tunnels and railway corridors were built with a minimal impact on Prague’s traffic. The ship’s supply has already saved Prague over 250,000 lorry loads.

You are promoters of shipping in Prague. From where do you get your inspiration?

The shipment of aggregates and sand for our establishments has been operating for a very long time, but few people realize how many positive effects it has on the city. There are several inspirations: Paris, Brussels, Vienna and other cities that are similar to Prague and where the river flows through them. For example, there are nine concrete plants and 11 loading bins for ship waste and debris situated directly on the banks of the Seine in Paris. There are also several compact mini-transhipments in operation, where river boats bring containers loaded with consumer goods. Or Brussels with the Charleroi Canal, which transports up to 3 million tonnes of material a year. After all, in Vienna, one cargo ship after another goes on the Danube River, transporting soil, rubble, wood and aggregates.

So, do you see a future in supplying buildings with raw materials along the river?

Shipping cannot be the only supply route in itself. A large part of raw materials and goods will always be transported by road. It is just a matter of making the most of the possibility of river transport and not only using it marginally. After all, in Prague we are actually the only ones using freight shipping.

So, when someone buys concrete from TBG, it means that they have helped reduce the number of lorries, is that right?

Actually, yes, even though I wouldn’t put it that way. Our goal is to supply concrete of the highest quality parameters and to be a reliable business partner to our customers. And the fact that we produce concrete economically and with respect to the surroundings, thanks to shipping we also save roads and relieve citizens from harmful emissions, I see this as our contribution to global efforts to improve the quality of the environment.

PR

It is not common for us to build a new district on a brownfield in the city centre. Not to mention in the centre of the capital, where every square meter often represents a battle.

That is why Penta Real Estate’s project for the revitalization of unused former railway areas around the Masaryk Railway Station is exceptional. Pavel Streblov, Business Director Commercial Real Estate, explained to us what has happened since the beginning of this year and what will happen in this area in the near future.

You have recently obtained a building permit for the first part of ‘Masaryčka’. Which part is it for in particular?

We now have a building permit for the first two buildings by Zaha Hadid along Na Florenci Street. These are commercial buildings with a total rental area of over than 27,000 sq m, of which approximately 4,700 sq m on the first two floors will be designated for shops and services. Other significant features of the new buildings will be 1,500 sq m of green roof terraces. One of the terraces will be located on the highest tower facing Old Town and, thanks to a 360-degree view, will offer a unique view of the whole of Prague. Apart from the building permits for the buildings per se, we also obtained a building permit for the major reconstruction and widening of Na Florenci Street, which will become a tree-lined city boulevard with the emphases put on pedestrian and bicycle traffic. Reconstruction of the street should take place in co-operation with the city, with a commitment to contribute to it financially.

What concept for using retail space are you working with at the moment?

We would like to complement the existing business offer for the passengers of the station itself, however, our main ambition is to make Na Florenci Street a zone where residents and tourists will not only be able to go shopping, but will also be happy to go there for a nice meal or visit a cafe. We are also thinking about setting up a successor to the Manifesto food market, which is now located on the area of the Masaryk Station at the back of the street at Florence. The food market has quickly found its place on the gastro map of Prague thanks to its unique concept, and we would like to further develop the locality of Masaryčka in this direction in future.

Do you plan to retain the architecturally impressive buildings from Zaha Hadid studio in the future, or do you expect to sell them?

All office buildings are always built with the proviso that we may keep them in our portfolio. As for Masaryčka, a decision has not been made yet. We will probably address this issue following completion and will see which is going to win, whether emotions among Penta’s partners resulting in keeping the buildings in their portfolios, or selling them at an advantageous price.

At the end of last year, Mr. Palička stated in an interview that you are planning two urban-architectural competitions. The first of them was already proposed to be announced – in the area between the historic station building and Havlíčkova/Na Florenci streets, and the second was to follow within this period – to the ‘back’ part of Masaryčka towards Prague 8 and the ČSAD plots. What is the situation?

The competition for the architectural design of the square at the intersection of Havlíčkova/Na Florenci streets is already at a more advanced stage. The first round of the competition took place a few weeks ago, and the jury selected several studios, whose task is to elaborate the assignment in further detail. Final proposals should then be available for the overall evaluation of the competition at the beginning of April. We would like the implementation to run in parallel with the construction of Masaryčka itself. Zaha Hadid’s buildings impressive organic curves could thus be admired from a pleasant public space with trees and water features. As for the Masaryčka area in Prague 8, we would like to announce the conditions of the urban-architectural competition in the coming weeks. With regards to complex relations with the territory, we decided to co-operate with the city and ČSAD so that the resulting solution meets the needs of all key stakeholders within the territory.

What does the staging of the whole project look like?

In the first phase – that is in the case of two administrative buildings along Na Florenci Street – we have already commenced construction. If everything goes according to plan, the buildings should open in the middle of 2023. The construction schedule is a little longer than usual for our projects. This is due to the greater complexity of the building structure and also the very demanding processing of the gold facade. Nevertheless, we are convinced that this extraordinary place deserves extraordinary architecture, and we believe that our exceptional investment will pay off and become one of the architectural gems of Prague, where people will be happy to return.

Will the operation of the station be limited or closed at a certain stage (during the implementation of the tracks roofing)? How is cooperation with ČD and the Railway Administration proceeding?

The revitalization of Masaryk Railway Station also includes the reconstruction of historic buildings and the complete reconstruction of the tracks with the tracks roofing. As for the reconstruction of historic buildings, we are cooperating over the long-term with their owner, Czech Railways. We have already invested more than CZK 140 million in repairs, and further investment will be required for the renovation of the station restaurant and the renovation of part of the station at the former ticket booking offices. As for roofing over the tracks, we cooperate with the Railway Administration there. We primarily try to coordinate individual intentions so that they follow each other as technically and temporally as best as possible. At the same time, we undertook to contribute CZK 40 million to the Railway Administration to build the roofing.

The roofing will result in the creation of large public spaces with greenery in the city centre. How do you co-operate with the city council and council of the affected city districts in this respect? Will they somehow contribute financially to the whole project? Who will manage these newly created premises? 

We have an agreement with the city that we will take care of the new greenery in Na Florenci Street for a period of 10 years. We always attempt to emphasize public space in our projects, and quality greenery undoubtedly belongs to it. In co-operation with the city, we are trying to implement some modern aspects of the so-called blue-green infrastructure, such as the collection of rainwater from pavements, etc.

AK / photo: penta