The real estate group Urbanity focuses on building modern production campuses. This spring, we wrote about their project in Tachov. Now, the company is preparing yet another project situated on the other side of the country – in Bruntál. 

The project was introduced to us by Roland Hofman, CEO and co-founder of Urbanity Group. 

You build industrial campuses, but your company is not a typical developer…  

When we founded Urbanity Group, we set ourselves a goal to try and move industrial development forward so that it is once again desired and sought after by the public. For instance, for a very long time, we often heard objections and resentment that we only create grey boxes occupying arable land, which only differ from one other by some coloured strip under the attic referring to the developer’s logo. People don’t like such an impersonal concept, and neither do we. We decided that we should return architecture and design into industrial development and prioritize the comfort of its users.  

Was it the only impulse?

At Urbanity, we made a list of what we don’t like about industrial development: no architecture, often uncomfortable working environment, insufficient services for people, being environment unfriendly, burdening local transport and social infrastructure, the fact that workers must be transported to the emerging locations from remote areas en masse, and the social tension resulting from all that. The real and long-term impacts of industrial development on people and the environment remained a question. We decided be the first to do something about it. To create campuses that would represent an integral part of a pleasant lively city.

What can this represent for the particular location? 

We create production campuses that do not burden urban infrastructure, but rather complement or further develop it. It means that we do not just create a production function without any continuity, but on the contrary, we also create other related services provided not only to local employees, but to the entire community. For instance, a nursery school or a quality area for catering, a cafe, a hotel-type accommodation, a company doctor, sports and community facilities and others.

What do you consider important in this context? 

First and foremost, the fact that we want to focus on revitalization of urban brownfields, both so that arable land doesn’t get seized, and also that people from the regions do not leave for larger residential cities just because they don’t have adequate employment within their area of residence. We want to bring attractive job opportunities back to the regions, connect global opportunities with local talent and thereby positively influence the development of cities and regions.  

That must also arouse other positive factors.

It is also influenced by the fact that our campuses are situated right in the city and people do not have to commute far for work. This corresponds with the fact that they have job opportunities virtually behind their house, which also has an impact on traffic – there is no unnecessary traffic burden. People can get to our campuses on foot or by bike, or public transport. Thanks to the additional services offered, people are able to satisfy more of their needs at once and in one place. This is definitely yet another benefit going even beyond. 

You are currently preparing a revitalization of the industrial area in Bruntál, which is 300 m from the bus and train stations. So, it is perfectly accessible as it is not somewhere in the middle of a field. The campus will become part of the city. Can you reveal anything more specific?  

Accessibility and proximity to people certainly play a big role, especially in production companies where there is a greater number of employees. Car transport of employees to remote workplaces, on the other hand, leaves a more significant carbon footprint than freight transport associated with production activities or supply and distribution. This is associated with dustiness, noise and safety. These are certainly other factors from a perspective of sustainability.  

Tachov has a unique certification. How will it be in Bruntál? 

We naturally want to have the production campus in Bruntál assessed with comprehensive certification as well. We want to apply for BREEAM Communities. In this case, the subject of the certification is not only a separate building, but it is the entire location and the effects of the entire project on the region that are assessed. We do not go the standard way of certifying individual buildings separately in the classic BREEAM form, but in fact, we focus on broader relations. This approach is much more comprehensive and complex from the point of view of the overall functioning.  

Can you briefly describe the entire complex?

The campus will comprise four industrial buildings. The smallest of them has an area of 3,500 sq m; it is aimed more at regional production companies. The other two have approximately 5,000 and 10,000 sq m. The fourth one is exceptional for its size, as it has 35,000 sq m, but at the same time for its clear height of 20 m, which allows for a placement of automated and robotic operations.

In Tachov, you set the principle of revitalizing the complex practically on the fly. Will it be the same here? 

It will be easier for us in Bruntál, because there are not that many buildings intended for complex revitalization. The existing operations will mostly be impacted by the revitalization of the campus infrastructure, including new connections of utility services and a new substation, which will also proceed during full operation.

In older campuses, there is often a problem with high energy performance. What is your plan for solving that? 

All our buildings are classified as exceptionally energy efficient. With regard to our approach to energy, we use the relatively robust know-how of our internal energy team. We will certainly maximize the involvement of local renewable sources. All roofs will naturally be equipped with solar panels. From our experience in Tachov, we know that we can cover approximately 40–50% of production clients’ consumption. The advantage of the Bruntál project is that, like in Tachov, the ČEZ Distribuce substation is virtually outside the fence, so, we are not fundamentally limited in terms of capacity. 

How will you handle other important issues?

We will use local sources of drinking water through our own boreholes; thus, we will be able to be 100% self-sufficient. The possible use of heat pumps will depend on the type of production. What has proven very successful for us in Tachov is the use of emission heat from the production process, with which we can cover 100% of hot water consumption and up to 80% of heat consumption for heating the building. We will also work intensively with the colourful elements of the blue-green infrastructure.

Do you collaborate on the project with Bruntál municipality?

Yes, we do. This can be seen, for instance, in the cooperation on a new traffic solution for the access road. The existing access road has, for more than 50 years, led rather ineptly through a villa residential area. We signed a cooperative agreement with the city claiming that we will build a new driveway, which will quieten down the residential area. The new transport solution will also better follow in the emerging urban ring road of Bruntál, which is fully under the responsibility of the city management. The city management has been working on the ring road intensively for many years. Today, they already have a building permit and should commence the implementation next year. As part of the new campus transport solution, we will also build a new bus stop, which will be right at the entrance to the campus. This will further improve the already very good accessibility of the area. In general, I would say that cooperation with the council is very constructive and effective. We were able to identify problems and find their solutions together, which is very important. 

Does the entire site remain in your possession?  

Exactly. We are not only a developer, but also an investor, manager and landlord. Our investment horizon is not as much long-term as it is permanent. Which can be seen in our approach. We can afford to look at the investment from a slightly different perspective than we would if knowing that we would sell our projects to someone else – whether in one or five years. By wanting to keep our projects permanently, we also know that we want and will live in symbiosis with people and communities for decades to come. That is a big commitment.

The last question is what is the time frame for completion?  

We are now at the stage where we have received all the necessary statements and we anticipate that by the end of this year we will have obtained a valid permit for the entire site. We plan to commence construction next year and will be able to deliver the buildings in 6–12 months. We plan to complete the project in three years. The individual buildings will be built turnkey to clients’ specific requirements in order to best suit their needs. Tenancy agreements are signed for 10–15 years, which, for instance, also enables us to adapt energy solutions to clients much better. 

 

Arnošt Wagner

Photo: Urbanity archive

 

Roland Hofman

He specializes in investment, management and development of commercial real estate. He is the co-founder of the real estate group Urbanity, where he holds the position of CEO. He is a graduate of the finance department at VŠB-TU in Ostrava, he received his MBA degree at the University of Greenwich in London, where he also gained experience from working in top management. In the past, he worked in high managerial and statutory positions in companies belonging to the investment company M.L. Moran, where he also set on the Supervisory Board. 

 

The subsidiary of the leading Israeli development and construction company Shikun & Binui (Housing & Construction) – Horizon Holding – has been operating in Prague for 22 years. 

Shikun & Binui (Housing & Construction) was founded in 1924. It is traded on the Israeli Stock Exchange and has numerous activities in the field of residential construction, energy infrastructure and transport constructions all over the world, including Africa, and North and South America. “Here, in the Czech Republic, we mainly focus on residential buildings, and over the past 21 years, we have managed to complete around 2,000 apartments. We have similar activities in Warsaw, Bucharest and Belgrade,” says the company’s CEO, Yishay Furman. We asked him more questions.

Can you tell us more about the projects you have completed recently or that are under construction? 

We have two projects in Modřany – last year, we completed the Modřanka project with 355 apartments, and we are currently about halfway through the Zahálka project, which is located in the immediate vicinity to the golf course in Hodkovičky and near the Vltava River, in a beautiful location with very nice architecture. There will be 800 apartments, where 500 have already been completed and handed over, and other 300 are under construction and on sale. In Čimice, we have the Čámovka project with a total of 700 apartments, of which around 300 have been completed, and we want to start building the other 400 from the next year. Three years ago, we completed a project in Horoměřice, Prague-West, with 200 apartments. We finished two projects in Karlín, the first of which was Rezidence Vltava with 105 apartments (completed in 2016) and the second was the boutique project Kay River Lofts on the Rohanské Embankment. It has, so far, probably been our best project in Prague.  

And what about the planned ones?

One of our largest projects is located in Statenice. First phase of Aura Statenice comprises of 79 spacious villas (around 300 sq m) with plots of around 1,000 sq m is now on sale. We are waiting for a building permit for the second stage with approximately 600 apartments, which should be launched sometime in early 2025. Recently, we started sale of our new project in Karlín called Blízká. We currently have hundreds of people interested in reservations, with some already being signed. It is an example of a good location, a good standard and a reasonable price, so there is a satisfactory interest even in these uncertain times. We are planning another project in Bohdalec, where we have requested a change in the zoning plan for the construction of 1,500 apartments, which should be one of the largest housing projects in Prague. If everything goes smoothly, we might be able to apply for planning permission in 2026. Then we have a very large plot of land in Chuchle, where we plan around 1,500 apartments, but we are waiting for a change in the zoning plan. The Urbanika project with 170 apartments is located near Strakonická Street and the development area near Smíchov Station. We hope to be able to start building by the middle of 2024. And the last project with 100 apartments, is in Záběhlice, and I assume that we will start building at the beginning of next year. 

So, how many apartments do you want to put onto the market in the coming years?  

Next year, we will have 1,200 units in preparation in five projects and in the near future, we will have total of 3,870 units in preparation. In the last two years of the crisis, we have been trying to prepare projects in such a way that – as soon as the crisis passes, the banks lower the interest rate and mortgages become more available – we can put them onto the market. So, if everything goes smoothly, we should start the mentioned projects in 2024. 

Sustainability and certification are a very current topic for developers and construction companies. How are you doing?  

All of our planned projects, which I talked about in the previous answer, will undergo BREEAM sustainable construction certification, which is more common for residential construction. The point is not for the projects to be only ‘green’, but also to be connected to the community. So, it is also about their surroundings in order to make living more pleasant not only for our residents and tenants, but for neighbours and other people as well by, soft landscaping, for instance. In Aura Statenice, every villa includes a heat pump. It is a fairly high initial investment, but we believe that it is an investment in the future and that it will pay off for homeowners. I assume that within 10–15 years, all residential projects will be sustainable. It will be like offices, where it became part of the standard; 20 years ago, we considered it unnecessary. And it will go the same for apartments.  

Arnošt Wagner

Photo: Horizon Holding archive 

Innovation, sustainability, and efficient use of urban space – these are the key aspects highlighted by the recent successes in parking solutions implemented by Green Center, the leading Czech manufacturer and provider of parking systems and technologies.

Green Center focuses on integrating advanced technologies in its projects, which include license plate recognition systems and navigation systems for efficient guidance to available parking spaces, all with the aim of optimizing user experience while also promoting sustainable development in urban areas.

P+R parking house in Nové Butovice

The P+R parking house project in Nové Butovice represents an extraordinary combination of comfortable parking for 380 vehicles while also efficiently utilizing space with a thoughtful division for commuters and local residents. With four charging stations for electric vehicles and the potential for future expansion to a total of 33 stations, this implementation is a prime example of innovation in urban parking.

“We are very pleased with this project because it reflects our ongoing effort to create practical and eco-friendly parking solutions that effectively respond to current needs and aim towards sustainable cities,” says Tomáš Zdobnický, CEO and owner of Green Center.

P+R parking house in Mladá Boleslav

A new P+R parking garage has also been recently opened in Mladá Boleslav. With more than 300 parking spaces and six charging stations for electric vehicles, strategically located between the sports hall and the main entrance to the stadium, this project offers not only practical advantages to the city’s inhabitants but also supports ecological mobility.

T. Zdobnický comments it: “Our investment into innovative and sustainable parking solutions reflects our firm belief that smart technologies and thoughtful urban approaches are key to creating smart and green cities for future generations.”

In the context of growing challenges of urban mobility and enduring sustainability, projects like those from Green Center become an essential step towards adapting our infrastructure and promoting a more sensitive and efficient use of urban space.

Passerinvest Group is a Czech investment and construction company founded in 1991 by Radim Passer. The company’s main project is Brumlovka in Prague 4, where they turned an originally unattractive and neglected brownfield into a fully-fledged modern and pleasant part of the city.

Eduard Forejt, who has been working at Passerinvest Group since 2018 and is the Director of Business Development, spoke with us about the current situation in the real estate market and the company’s plans.

We can start on a more general note – how is Passerinvest Group doing in the market? 

It has two dimensions. One is Passerinvest Group (hereinafter Passerivest) the investor and the other Passerinvest the builder. The first covers the buildings we own, manage and develop. Currently, this represents approximately 250 000 sq m of rental premises. In Brumlovka alone, we own 10 out of 12 administrative buildings. We continue to develop Brumlovka, so we are preparing several projects for construction. There we come to the second dimension, which represents Passerinvest as a builder. Unfortunately, the circumstances affecting the economics of projects have changed fundamentally in recent years, especially in the area of financing, which is directly connected to interest rates that are still increasing or have been increasing in the European market. But it is not the only area where the economy of buildings has changed negatively. When simplified, the calculations are affected by four parameters – acquisition value, construction costs, then there are software costs, which also include the financial ones, and the sales value determined by the so-called yield. These parameters determine what potential profit you can take into account. However, since there was an unprecedented deterioration of all parameters, we find ourselves in a situation where it is irresponsible to commence construction of new administrative buildings.

And what is actually new in Passerinvest?

I don’t know if it is completely new, but there are two directions I would like to talk about. The first direction refers to our initiatives through which we try to shed light on socially important topics in a very transparent manner. When you look up the www.republikabohatsi.cz website, the videos and other materials will inform you more about the motorway initiative or the development of buildings for a richer country. For example, the data for the second initiative (development of buildings for a richer country) describe beautifully the fundamental importance of construction for the well-being of all citizens of the Czech Republic. That is also why our main motto states: “When your neighbour builds, you also get rich.” For instance, almost 76% from every invested crown goes, thanks to multiplication, to the state budget, that means that every one thousand-crown note invested in the construction of buildings ‘enriches’ the state by CZK 760 . And these are the funds that the state will use, for instance, for teacher or policemen’s salaries or for anything else that our society needs. Moreover, construction generates new jobs, not only during the construction phase, but also after its completion. That is one part.

And the other one? 

I will give Brumlovka as an example. Passerinvest has been developing it for 25 years. There we show how the city interacts. Brumlovka is distinctly administrative, but it is built in an area whose surroundings actually form the largest residential part of the city. Historically, there was a lot of housing, but little space for work, which forced people to commute far for work. The first facilities built within the brownfield were offices creating much-needed jobs with public areas. The offices were gradually complemented with shops and eventually with a nursery school, a school, etc. The area started to become a fully-fledged area, if not an above-standard part of the city. Urban planning was formerly set by the architect Aulík, and we still stick to his concept. We show that the city has the ability to function in that interaction, that a new sub-centre of the city district can also be created. We have reached the point where we are building more apartments because, according to our calculations, there is a lack of new buildings in the immediate vicinity – especially when it comes to rental apartments. We currently have two new buildings planned in Brumlovka. One has already been issued with a building permit and will include around 66 rental apartments. We are now specifying what such a rental apartment should look like in order to complement the structure of the given location. We are aware that we are part of a larger entirety and create some kind of added value for others. So, with a bit of exaggeration, I say, for instance, that today we have the largest swimming pool in Prague 4, because our water features are used a lot by children during the summer – and not only by them. If you keep a close eye on what is going on around you, you’ll realize that the water features could use deck chairs for people to relax, so we have added them there. It is a kind of unintentional participatory process. But to make it clear, Brumlovka is not there only for people from nearby offices. Those who work there are not there at weekends or in the evenings. Still, Brumlovka is widely used for various accompanying programmes, dance and travel clubs, running with Puma, etc. We simply support all activities that shape the local community and show that if you approach the locality as a whole and with a certain vision, it is possible. 

So, Brumlovka can serve as a manual of city-forming elements… 

I think it can and on top of that, it was based on a brownfield – originally, there were landfills, broken garages, etc., so the acquisition value started at zero. I believe that it is a nice example of how to execute a fully-fledged revitalization of the city. With such projects, you must not deal only with houses, but with the entire territory, and this has definitely turned out well in Brumlovka, judging by the reactions of foreign visitors who come there to check it out and absorb our approaches to the revitalization of the city. We don’t keep our experience to ourselves. We try to educate others and cooperate a lot with schools, professional public, etc. We don’t stop even when there is an economic struggle today and inflation pushes us to higher price levels. But we don’t want to compromise on the quality of construction, and our example shows that it can be done. The good thing is that we are not alone and we are sincerely pleased that there are more responsible developers in the Prague market thinking about the territory in a long-term perspective. We logically transfer our experience and corporate DNA to other projects. For instance, we are now finishing the Roztyly Plaza project, and people wonder why we build parks first and then build buildings. I say that this is simply a kind of Passerinvest’s fundament to first create a location and not wait for construction. Of course, it is important to say that our financial situation allows us to do this. If this were not the case, we would probably have to do it differently, but our projects definitely work and will work with the connection to their surroundings and the creation of quality public space. 

Sorry, you said revitalization, don’t you mean recycling?  

I don’t like to use the word recycling for Brumlovka as it is a very different discipline. Recycling is a state where one out-of-date function is replaced by a new one with a higher value. At that moment, you may have to buy functional, though aging apartments or some other space that is still usable in order to demolish it and build a new building.  

What does the Roztyly Plaza project actually look like?  

We are still building it, but it is already beautiful, the whole figure can already be seen, and the facade is gradually being clothed in its final appearance. But that is, of course, a subjective view, even though it is a view of someone who has been dealing with administrative buildings for a long time. However, the project is being created in the neighbourhood of an already existing leisure park with outdoor fitness and workout elements, pump tracks, a children’s playground, etc. The community that is already being formed there is discovering that what we present in the plan will really be built in an appropriate quality. This is also why the visualizations of Roztyly Plaza are a very faithful representation of what is actually being created there. It is a kind of DNA of Passerinvest and Mr. Passer, who pays attention to the quality of user space as well as to the aesthetic level, because both components are simply inextricably linked. The users can perceive it, even if they often can’t define it. It is like when you feel nice in some place and you don’t know exactly why. 

Is there anything that currently surprises you or catches you unawares during construction?

I wouldn’t say that there is anything that would catch me unawares, but our assumptions, which I talked about in the first part of the interview, are being unpleasantly confirmed. The reality is that for the first time, I am encountering a situation when we – like Passerinvest – have a building permit, but we are not starting construction because it would be irresponsible to do so from an economic point of view. The market is not yet ready to accept higher rental prices, just as there has been no correction in the other parameters of the construction economy. Every builder has an inner desire to build, so we do everything we can to resolve the individual aspects of price formation to such an extent that we can build as soon as possible.  

Arnošt Wagner

Photo: Passerinvest Group archive