Green leases will be common by 2026.

Savills prepared “ESG Top 10” to guide companies through the process of setting the successful strategy.

Currently, sustainability and ESG responsibility are not being addressed only in real estate, it affects virtually every company. Savills’ “Sustainability Report” says that by 2026, green leases will become a common part of lease agreements. Absolutely key to the implementation of an ESG strategy will be the cooperation between tenant and landlord, and the setting up of ESG reporting. Reporting of non-financial data is required by EU legislation and data from the sustainability report will be mandatory from 2024.

For better orientation, Savills has prepared the ESG Top 10 to guide companies through the necessary terminology to successfully ESG strategy.

Pavel Novák, Head of Office Agency at Savills, says: “A key aspect of green leases is the cooperation between landlord and tenant, and the agreement to operate the building in a sustainable manner. However, for a real positive impact on the environment and society, a change in attitude and mindset is essential for an ESG strategy to have an effect.”

 

Jan Jurčíček, Head of Building and Project Consultancy at Savills, adds: “Partial inefficiencies of heating, cooling and air conditioning systems caused by inappropriate regulation is currently one of the biggest problems of building energy performance. At the same time, it is very common for one part of a building to be heated and another to have the sun shining all day and cooling, creating the potential for more efficient building operation in the future.” 

Some of the buildings are generally ESG-ready, but landlords do not have the right processes in place. They have the data they need, but they don’t know how to provide relevant reporting to tenants.

PR

Obermeyer Helika envisages the further development of shopping centres

In our interview with Jiří Fousek, Managing Director of OBERMEYER HELIKA, we take a look into the world of comprehensive planning services. 

With a portfolio including medical buildings, shopping centres, residential complexes, office buildings, and other types of real estate, this company is one of the largest planning and construction consulting firms in the Czech Republic.

What is the key area you are currently working on for Obermeyer Helika? It is well known that you cover almost all segments of the development and construction industry in planning and designing buildings, but what is the main thing for you?

Commercial development is still the most interesting area for us. We believe in further development and are also counting on completing or redeveloping a number of shopping centres. Planning work in this sector is still our core business. This is what we do best on the Czech market, and from my point of view, this is still a very promising segment, although many have doubts about that.

It is said that enough shopping centres have already been built in this country and that we rank very high in the European statistics in terms of square metres of retail space per capita. So where do you see the potential?

I think we’re still facing another major transformation in the development of shopping centres. By that, I mean that poor and unsuccessful shopping centres will gradually disappear, or at least get smaller. Successful and well-planned shopping centres, on the other hand, will grow and will be expanded and rebuilt. That’s my current view of the market. I don’t deny that there’s a lot of commercial space in statistical terms, but we’re at a stage where quality projects will be promoted at the expense of poor ones. And we as a company want to be in on those quality projects and I believe we will be.

What will this development look like from a regional perspective? Are we now talking about building shopping centres exclusively in large cities, or in medium-sized or small towns?

We are seeing that demand for the expansion of shopping centres is still the highest in Prague. It is no secret that this is true of the Centrum Černý most shopping complex, for example, which is to be further improved, something we are currently addressing at Obermeyer Helika. But we also have other locations in Prague where we’re working to reconstruct or at least upgrade existing shopping centres. One example of this is our involvement in the reconstruction of the Palladium shopping centre in the centre of Prague. A similar process will take place in the regions. We have cities where there are now two or three shopping centres competing with each other. Most of the time one of them starts to dominate and the other declines. Naturally, the owners and investors of those successful shopping centres will want to confirm their dominance. Or, on the other hand, investors who have acquired less successful shopping centres will want to change this situation – and that means upgrading. Of course, this all depends on what kind of customers they have, what they can offer them. But the plan is primarily related to the location and design of the shopping centre and, last but not least, how the shopping centre is run.

Moving away from retail centres and looking at your industry as a whole. What do you consider to be the main complication or obstacle to the development of Czech real estate development?

This is a bit of an old chestnut, so I may be repeating myself somewhat. The inflexible nature of our permit processes and planning principles is a hindrance not only to development and construction. It is already a significant drag on the whole economy, on our country as a whole. I could give a number of examples. We can ask: What about the Prague Metropolitan Plan? No one knows at the moment, no one can answer that. Yet it’s been going on for many years. With the new Building Act, we were all looking forward to the situation finally changing, but so far it doesn’t look like it will. One key change was to be the digitization of all the building approval processes. This change is clearly not ready. Yet the act should enter into force on 1st July, 2024, and digitization is not even in its infancy. We don’t have any regulations or ordinances. This means that no one involved in the process knows what will actually happen on 1st July. Unfortunately, I’m afraid that the main objectives of simplifying and speeding up the process will not be achieved by this new Building Act.

From what you say, it’s quite obvious what you’d like to see in the Czech real estate development sector in the near future.

I’d still like us to have good spatial planning, clearer regulation and a Building Act that is fit for purpose. This is what is currently holding us all back the most. Solving or at least improving this legal framework would significantly help the entire Czech economy.

PR

InterCora has already been in the market for 30 years

Companies and business in general are thriving in the West Bohemian metropolis of Pilsen with its population of just over 181,000 people. Apart from the local breweries that export the golden nectar to almost the whole world, there are other companies with a long tradition that are competitive even beyond the borders of the Czech Republic. 

With regard to the development field, these undoubtedly also include the Czech-Bavarian company InterCora, which builds and rents commercial real estate for retail, and has recently celebrated their 30th founding anniversary. During this period, they built over 100 shopping centres with a total area of over 2 million sq m, some of which they manage and operate. 

Restored shopping centre

And what did such a decadal anniversary celebration look like? On Thursday, 9th November, InterCora festively presented the new look of the Alice shopping centre in the Skvrňany district of Pilsen. The entire project corresponds with current trends and meets the strict ecological criteria imposed on new buildings. The shopping centre was built on the site of the former Jednota housing estate building from the 80s. The whole construction of the Alice shopping centre was very fast. Demolition works started only this January – Penny Market closed on 4th January, 2023.

The new centre with an area of 2,500 sq m was inaugurated by representatives of the developer and companies collaborating on the construction as well as the current tenants. At the beginning, both owners of InterCora thanked everyone who participated in the company’s success – employees and business partners, as well as city administrations.

Ing. Ivan Hlaváček, who makes up, together with Dr. Günther Zembsch, the tandem of owners of the InterCora Group, told Development News: “We managed to establish an internal strategy – to demolish buildings that are not functional and are energetically disadvantageous. We decided that building a brand-new building was better than rebuilding or renovating and trying to bring in improvements.” That it was the right decision was stated by the Mayor of the municipal district of Plzeň 3, Mgr. David Procházka, who praised the good cooperation between the developer and the city on the project. Ing. Ivan Hlaváček subsequently added that the area around the building still awaits final completion: “Collaboration with the city of Pilsen proves a very good cooperation, as we left the adjacent plots to the city, but brought them into a state when they are prepared for a completion of a park, which is to be opened next year.”

The main tenant – the Penny Market store and the MÚÚÚ butcher’s shop – were retained in the new shopping centre. The original tenants were then joined by TEDI, Pepco, SUPER ZOO, Devětsil pharmacy and TABAKRA tobacco. 

The celebrations included a conference and a theatre performance 

After the inauguration of the new centre, the guests moved to the Vienna House Easy Plzeň hotel for a conference which InterCora has recently been organizing on annual basis, this time held under the auspices of the Mayor of Pilsen, Mgr. Roman Zarzycký. This year’s main topic was entitled Transformation of a Trader in the Age of Data. The engaging introductory presentation was delivered by Dr. Günther Zembsch, who has been involved in the field of development for over 40 years, and also acts as an analyst and a successful visionary of new concepts. The conference culminated in an economic analysis presented by Ing. Miroslav Singer, former Governor of the Czech National Bank.

However, the celebrations did not end with the conclusion of the official part of the conference; they continued with an evening cultural programme held at the New Stage of the Josef Kajetán Tyl Theatre, providing the guests with the opportunity to watch the musical Candide by Leonard Bernstein. 

Arnošt Wagner, Photo: Author and InterCora’s archive 

We asked both CEOs of  InterCora:

What did you, as investors, consider to be the biggest obstacle in the implementing of the project?

Answered by Dr. Günther Zembsch: Definitely the location of the object, including parking spaces in the existing residential development, so, it was necessary to take into account the issues of the surrounding area. On the one hand, in terms of the number of parking spaces, and at the same time, it was necessary to create a cultural environment in the middle of a localized zone with an area of 2.500 m², where a new city park should be created. This will naturally connect to retail and a restaurant, which should transition into a park with a children’s playground and another network of urban fixtures and fittings, benches, etc. So, there will gradually be a nice living area for the residents there.

What was the main reason when considering whether to reconstruct the original building or demolish it and build a completely new shopping centre?

Answered by Ing. Ivan Hlaváček: It was decided mainly on account of economic aspects and calculations. We drew up a proposal with a building and zoning permit. Of course, we carefully considered and compared various options. In the end, we came to the conclusion that the complete demolition of the building, which was eventually done, and the construction of a completely new centre was a more economical and time-efficient option than pursuing some kind of revitalization, which would have involved a number of compromises – and the new Alice centre would still not have reached the required standard. The economy of the new operation is multiply better than it would have been with the best possible effort to revitalize the original building. So, this great advantage was preceded by the right decision. 

Next year will be a little better

Raiffeisen – Leasing has been operating on the Czech market for almost 30 years and provides a comprehensive range of financial products for financing movables and real estate, including additional services such as insurance and consultations related to subsidies.

The company specializes in financing investment needs in the field of machinery, equipment, technology, vehicles and real estate. The company employs specialists in financing aircraft, locomotives and other specific commodities. It offers a wide range of services to small entrepreneurs, businesses and corporate clients. For private individuals, the company finances cars and commercial vehicles. Alois Lanegger, former executive Managing Director of Raiffeisen – Leasing, answered Development News’ questions.

How does the current situation in the banking sector reflect in the real estate market?

While in general it can be said that the banking market looks good, the situation on the real estate market, which carries specific risks, is more complicated. Interest rates are still high, although they have already fallen slightly, the mortgage market is better off than a year ago, and the volume of mortgages granted is growing year on year. House prices and construction prices remain high and the whole construction market is forecast to decline next year, albeit not significantly. These are the reasons why banks and other financial institutions currently see the property market as somewhat risky. This is why we have to have higher collateral for the properties we finance, which may not always be entirely easy for our clients to accept.

Does this mean that developers are now waiting?

Developers are waiting and it is logical, it is caused by a decline in interest from buyers, high interest rates, high property prices and rising costs incurred for construction work, materials, energy. As a result of the current situation, many developers have already suspended some projects last year. They will start selling again when they complete the projects, i.e. when they have controlled the total cost of the project, in some cases they are waiting for a recovery of demand in the area.

According to the recent developments, it seems the market prefers rentals.

Rental yields have been relatively low in the past compared to sales yields. Leases were less attractive for developers, so they were more likely to sell their projects.  Now that rents are rising, also due to inflation clauses in most lease agreements, rental yields can be expected to match those from sales in the future.

Renting is a long-term investment for the developer…

Yes and no. Leasing will become increasingly lucrative, adequately matching the profitability and potential of each project.  If the developer decides to change its strategy in the future, they can sell the leased apartments later or put them into an investment fund.

Isn’t our rental legislation somewhat inadequate?

Rental legislation is certainly moving in the right direction, albeit slowly. If I compare the situation in the Czech Republic to the situation in, for example, Germany or Austria, the situation there is more complicated for landlords than here. Landlords there, for example, are in a more difficult position when they need to get non-paying tenants out of the rented property. There are certain tools for these situations, but it is a long way. Here, landlords are better protected.

What is the current mix of commodities that Raiffeisen – Leasing has in its portfolio?

Real estate makes up roughly 30–40% of our total portfolio. Of the ‘remaining’ majority, machinery, equipment and means of transport are the most important. We mainly finance trucks, trains, aircraft or production machinery and various technologies. Of course, financing cars is also important to us, and we mostly finance them for our clients in the form of a loan. Generally speaking, car financing is one of the more profitable products for leasing companies. Cars, commercial vehicles and trucks account for around 30% of our portfolio.

And the traditional question: What development do you forecast?

Personally, I think next year will be a little better than this year. Inflation is falling and interest rates will fall with it, and ČNB has also announced that if there is no extraordinary event, then interest rates will go down. With this, I expect that interest in mortgages will rise. People simply need a place to live and therefore have to deal with housing investments. I anticipate that companies that are cautious about new investments will also need to continue to invest.

Arnošt Wagner

Photo: Raiffesen – Leasing Archive

Digitization is an essential part of the successful decarbonization of the building sector

The Czech Republic is only at the very beginning in terms of the digitization of the building industry. The sector is actually one of the least digitized local industries. At the same time, digitization is one of the key prerequisites for the decarbonization of the building industry. 

Without fundamental changes in the sector, achieving the decarbonization goal of making Europe the first zero-emission continent by 2050 is virtually unrealistic. 

Printed documents still lead

“Decarbonization can be perceived as a cross-cutting phenomenon based primarily on detailed and correct measurement of the carbon intensity of most areas of human activity and its subsequent management using both behavioural, legislative and, above all, economic tools,” says Simona Kalvoda, Executive Director of the Czech Green Building Council. Digitization in the building industry will save time and costs and lead to better building management. But the main benefit is that it allows making decisions based on data, not impressions. This is the most important thing for setting up decarbonisation measures and financing them. 

However, the vast majority of information are still used in printed forms, which are impractical for subsequent use or archiving, and in addition, the individual agendas are still not interconnected and work separately. To achieve an optimal state, it is necessary to interconnect number of agendas and to introduce a unified data platform, which should record all the necessary parameters of existing buildings. The platform should enable digital receipt of data on new construction plans and changes in general and provide a data interface for the needs of financial administration, legislation, social affairs, statistics and modelling in a defined standard.

“Bringing together platforms as part of digitization could lead to a simpler and more accurate calculation of a building carbon footprint and the impact of building renovation and modernization on this carbon footprint. This could create an easy-to-use evaluation parameter for selecting the optimal solution, which could also be used in the procurement of contracts in the form of Performance Design & Build. The procurement process itself would also be helped by a higher level of digitization,” says David Martinek, Public Affairs Manager at ČEZ ESCO.

Unnecessary duplications

The absence of a unified platform leads to duplications such as dedicated software for the collection of property tax, the building’s own database of energy labels, the separate development of smart metering solutions, i.e. smart management of the decentralized electricity network or the census of inhabitants, houses and apartments. Another fundamental problem is that existing government systems do not consider the use of state-of-the-art technologies such as decentralized database or artificial intelligence for analysis, management and modelling. 

The BIM method has been used in the Czech Republic for several years. It is about transferring all relevant information about the building into the digital environment and sharing it across the entire life cycle of the building and all stakeholders. “The principles of digital modelling and planning are beneficial throughout the entire life cycle of a building. For building owners and operators, the BIM model is or will be used in the future not only for the design and construction of buildings, but also for the efficient operation of buildings, related to the maintenance and service of individual building elements, which will help decarbonization while considering energy efficiency,” says Petra Hajná, Sustainability Officer at CPI.

Unfortunately, the BIM method is not yet a standard in the Czech Republic. “Standardization or even a law that would require BIM or the principles of sustainable design and operation of buildings is noticeably lacking. In France, for example, the RE2020 law is in force, which requires all projects that apply for a building permit to be designed with a carbon footprint in mind. The state creates pressure, and the market is looking for solutions, which serves as an accelerator,” says Jakub Škaloud, Project Manager at VCES. Jakub Benda, spokesman for Saint Gobain, adds: “As far as BIM is concerned, we have been talking for a long time about the need for state involvement, both in the requirements for our own projects and in the form of rules and methodology.”

The Czech Green Building Council is aware of the importance of digitization for successful decarbonization. In connection with the creation of the Zero Carbon Roadmap, which lists the digitization of the building industry as one of the decarbonization measures, the Council is ready to exert pressure at the government level to accelerate its implementation. 

Architect drawing with cad software designing building

CZGBC.org

Urbanity plans to revitalize an industrial brownfield in Bruntál

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. 

 

Horizon Holding has big plans in Prague

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 in parking with Green Center

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 as an exemplary positive builder

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

Higher visual comfort = higher employee performance!

The topic of savings in commercial buildings now represents one of the top priorities of all operators of commercial buildings. But in fact, saving costs in operations also make it possible to achieve better comfort and higher employee performance. 

Visual comfort goes hand in hand with ‘non-invasive’ lighting control, without the need for complex reconstructions. It can be achieved by a simple installation of lights with wireless control and utilization of natural sunlight in the building during the day. Commercial buildings are usually more than 50% glazed. Employees don’t need to worry about setting the lighting intensity withing the working area. Everything is done on their behalf by a wireless lighting control system, which is additionally installed without the need for cabling with illuminance sensors and presence monitoring at the workplace. 

Hybrid work has changed offices

Offices are developing by pushing the boundaries between work, living and co-living, which requires a radical examination of traditional office lighting installations, this being especially due to the upswing of hybrid work. Wireless lighting control has proven to play a really huge role in providing flexible, highly attractive administrative premises that offer superior user experience, less energy waste and better employee well-being and productivity. Combined with daylight and occupancy detection, intelligent lighting control can save significant amount of energy in offices by ensuring that the right light is used when necessary. These systems can be easily controlled by switches, sensors or mobile applications. 

Example No. 1: Donaldson Filtration Solutions offices, Kadaň

The need to replace cassette strip lights (which are no longer available for sale in the EU) came only 15 years after the start of operation. It involved 600 sq m of offices (two open space areas with a corridor + 10 offices, two meeting rooms) and car park and loading area lighting that was secured by street lighting. 196 lamps were replaced with a retrofit completion of the original Synergis Lighting_Control wiring with lighting automation and control of office lighting: 

  • The light from the windows was used because the building was 50% glazed.
  • Dimming was controlled in accordance with daily increase in light. 
  • The seven-fold increase in the price of electricity brought about the need to reduce the seven-fold higher costs of the original lighting. 

The nominal consumption was reduced by around 58% in exchange for 196 LED recessed PROLUMIA Pro-Office DALI lighting fixtures with UGR<16 with the best visual comfort in the market.and additional consumption was reduced to 120 installed LED lighting fixtures by another 40% thanks to automated control using the Synergis Lighting_Control by Casambi technology. Dimming was set using light and presence sensors that regulate the performance of the lighting fixtures. The automation of lighting schedules was set in accordance with the presence of people in the 50% glazed offices. 

And the result?

The qualified estimate of savings using active control was around CZK 425,000 per year, while the acquisition costs for this ‘retrofit’ control system were around CZK 380,000.

After adding up the savings, Donaldson Kadaň came close to the original lighting costs with a huge shift in employee visual comfort and increased employee performance thanks to the extremely low lighting factor of the lighting fixtures under UGR<16. 

Example No. 2: Control room of the hydroelectrical power station Střekov – ČEZ Renewable resources: 

It was expected for the lighting comfort to improve when the colour temperature of the lighting changed during the day. The lighting of the control room with 24/7 operation was replaced by fully automatic controllable lights in accordance with the circadian rhythm depending on the time of day for better visual comfort with PROLUMIA Pro-Office TW (tunable white) lights. Autonomous control of the circadian rhythm and dimming was set up using the Synergis Lighting_Control.

Industrial premises are one of the more complex types of buildings to light. Energy consumption for lighting industrial facilities, especially industrial warehouses and storage areas, belongs to the highest ones (46 kWh/sq m per year), therefore it is very important to reduce operation and maintenance costs when the energy savings are being increased. Production halls are premises that can mostly operate 24/7, which means that energy-saving lighting fixtures and more efficient use of daylight are beneficial not only for energy saving, but also for improving visual conditions and the overall well-being of employees.  

Example No. 3: Production premises of Jakob Müller AG – Czech Republic 

After 15 years of operation, the company needed to replace their strip lighting with approximately 200 PROLUMIA Retrofit II LED lights. There they used incident light from skylights measured by wireless motion/light sensors with optics used in high-altitudes. Autonomous zonal Lighting_Control of individual workplaces was modified using lighting dimming according to shifts and the needs of individual production departments from the warehouse, welding room to quality control of all production areas in accordance with the set Luxes in workplaces came to 200 to 750 Luxes. 

 

Thanks to this change, 77% of the original costs are saved during daily operation. 

Advantages of the Synergis solution for building operations: 

  • energy efficiency and sustainability, 
  • data and connectivity, occupancy control, 
  • no need for Internet connection for daily operation, 
  • reduction of operating costs, 
  • wireless emergency lighting with automatic testing and reporting, 
  • trouble-free installation, easy way of being put into operation.

What to say in conclusion?

Today’s modern office and industrial buildings need a different approach to lighting; it should be flexible, adaptable to changing functions and user preferences, and energy efficient. Lighting is the largest endpoint of electricity consumption in European offices accounting for 40% of all electricity consumption. Intelligent lighting control can save up to 60% of energy in offices when combined with daylight, while occupancy detection can save up to 44% in comparison with an installation without sensors.

What is also important is the functionality for the end user; a recent study states that 33% of office workers said that they would like to adjust their ceiling and desk lighting to the level of incoming daylight. Giving workers individual control over lighting, which is also required by green building certification schemes such as LEED and BREEAM, can easily be achieved by installing the wireless Synergis Light_Control in all, even already existing buildings. 

Richard Jílek, Photo: Synergis archive