A hall can no longer be rented without certification

The Belgian family company VGP – developer, manager and owner of top logistics and semi-industrial real estate – operates in 19 European countries and, since 1998, also in the Czech market. 

Thanks to a fully integrated business model, capabilities and many years of experience, the company is able to implement projects from the purchase of land to the construction and asset and real estate management. Originally a construction company, VGP now strategically focuses on the realization of large multi-tenant industrial parks. David Plzák, VGP Country Manager for the Czech Republic, answered Development News’ questions for us.

The interest in logistics and warehouse space has increased significantly due to the development of e-commerce during the Covid era. How did this period affect your business?

There has been a significant increase in demand for warehouse and industrial space and a corresponding increase in rental prices from the start of Covid until now. Which, on the one hand, brings an advantage when renting or renegotiating existing buildings, but on the other hand, it generates great pressure for the acquisition of new land. We can see a critical shortage of them in many locations, which causes a price rise for those still available. In the last year in particular, we have also registered an almost rocketing increase in prices of construction work compared to previous years, which forces us to be very cautious.

Is it still possible to find land for construction in attractive locations? And what locations do you find attractive?

VGP generally wants to have parks near motorway exits and near larger cities. The offer in the Czech Republic is already quite limited in such locations, and possible opportunities are associated with significant complications during preparation, either in terms of permitting processes or induced investments. Apart from that, we want to focus more and more on the revitalization and renewal of the territory, the so-called brownfields, where we can make use of the advantageous position inside the cities.

What is the occupancy rate in your properties? To what extent can you afford to build speculatively? And are clients actually interested in speculatively built halls that are without built-to-suit modifications?

The total occupancy of our parks in the Czech Republic is very close to 100%. We have potential applicants for the vacant spaces, and we expect that these will be filled soon. Our long-term strategy is not to implement halls purely speculatively; we always want to have a certain level of pre-letting. We register cases where the client rents the hall in order to be sure that he will not lose the premises, and only then deals with possible modifications. We therefore also register a great demand for halls without specific modifications.

How do you think have the standards of logistics and industrial objects changed in recent years? Is it still possible to build halls today without some kind of certification? Do you have experience with green roofs, or with rainwater collecting, etc.?

In recent years, certification (BREEAM, LEED, etc.) has become a necessity for new buildings. Without a certificate, such a building would be very difficult to rent. Many potential clients, especially larger international corporations, have certification requirements as part of the specification. All our new projects have a BREEAM certificate or are undergoing the approval process. In Germany and the Netherlands, for instance, where VGP has its parks, we implement green roofs and install solar panels on a large scale. We are also planning all this here in the Czech Republic.

How to successfully revitalize brownfields

Since 2009, Contera has been primarily involved in the implementation and leasing of industrial parks in the Czech and Slovak Republics, but the project that is more and more distinctively emerging on the former brownfield in the centre of Ostrava rather deviates from the current focus of this company.

The construction of the Organica administrative building was commenced last autumn, the underground work was completed this spring and the building began to grow up into the heights. Construction of the monolithic skeleton is currently in its second half.

Unique architectural solution

Organica is extraordinary for its architectural concept and gentle approach to ecology. The developer’s vision was realised by architects from Schindler Seko Architects. Administrative buildings usually have an orthogonal floor plan and use the division of space into right angles so that each employee gets a specific number of meters to work in. “When working on Organica, we were not bound in this way, and thanks to the circular shape, we were able to work with the interior space more freely. There is no similarly designed administrative building in the Czech Republic or Europe yet, it is an exceptional work,” says Ludvík Seko, a senior architect.

The project also meets the needs of Tietoevry, which will take roughly two thirds of the building upon its completion scheduled for the third quarter of 2023 and will use Organica as their new headquarters for Central Europe. The international IT corporation expects that some of their employees will work from there, some remotely and some jobs will be shared.

A building with intelligent systems

The concept of the building and its use can be considered timeless. The distribution of fresh air for employees will be controlled by an intelligent system, the building will manage its own heating and cooling according to the season and following the weather forecast thanks to its own weather station. Parking areas will provide charging stations for electric cars and electric bikes, and when looking for a parking space, one can use a mobile application. USB charging of mobile devices will be available on the benches located in the quiet area of the atrium. There is also a plan to use rainwater irrigation system and rooftop photovoltaic panels, thanks to which Organica will be partially self-sufficient in terms of energy.

“When we were dealing with the project at the time of its inception, we had a clear vision for Organica to be truly ‘user and eco-friendly’. How far-sighted it was can be seen now at the time of the incredible increase in energy prices, which have driven the costs of companies to ratio that no one would have believed a few years ago. The prestigious BREEAM Excellent certification, which was confirmed in the design stage,“  says Martin Budina, Project Director of Contera.

An industrial park in a brownfield

CONTERA PARK OSTRAVA D1 in the Hrušov district, Ostrava, is also prior its completion. It is situated in an area of approximately 35 ha and will offer about 151,000 sq m of industrial space, mainly for light industry, warehouses and production. The last industrial hall is currently being completed. The construction of the first expansion of the Sportisimo building will begin in the coming months, and a technology park that will serve scientific purposes is being prepared. CONTERA PARK D1 in Ostrava is currently 95% leased; large areas for rent and the total expanse of the park guarantee flexibility even in case of tenant development. The advantage of the park is in its excellent transport accessibility thanks to the proximity of the D1 motorway, and the railway also guarantees excellent connections to other regions of the Czech Republic, Poland and Slovakia. There are many industrial zones in Ostrava that are almost fully utilized, and CONTERA PARK OSTRAVA D1 thus represents a unique opportunity for further business growth in the city.

The Hrušov brownfield was once used to house workers from nearby businesses. In 1997, the entire area was flooded, followed by its devastation, gradual depopulation and the creation of the so-called social brownfield. Contera has been specializing in the revitalization of brownfields for 12 years, and 84% of the portfolio in the Czech Republic and Slovakia consists of similar projects, and the company wants to continue wending in this direction.

There are over 100 clients working in Contera’s logistics parks in the Czech Republic. Their portfolio is very balanced and is divided into five main sectors – manufacturing (Magna, Aludyne, Malfini, BMK, etc.), logistics (VAS Solutions, DB Schenker, Esa Logistika, DHL/PPL, etc.), distribution and e- commerce (Sportisimo, FAST ČR, AT Computers, Ikea, etc.) and retail (Planeo, Rossmann, Pepco, Spokojený pes, etc.).

Bold plans for the future

There are over 10 million sq m of industrial space in the Czech Republic, which represents approximately 1 sq m per inhabitant. This is a natural development of the market, which illustrates that the Czech Republic is an attractive country for investment and business. At the same time, it is necessary to take into account that the land in premium locations is more or less exhausted and further development can be expected in the regions.

The vast majority of Contera’s projects are in the field of logistics parks, but according to Laurent Jechoux, the Commercial Director of Contera, they are also preparing projects of a different type: “In the future, we plan to diversify our activities more, especially in the office and residential sectors. Organica, which we are currently building in Ostrava, is our pilot office project – and it certainly won’t be the last.”

For the near future, Contera plans to continue the construction of all projects so that new clients can move in on time. At the same time, they are preparing several new projects in the Czech Republic and Slovakia, which will soon be introduced to interested parties.

Jinonický dvůr – a unique place to live in

V Invest Development is completing the construction of the second phase of the Jinonický dvůr project in the Jinonice quarter of Prague.

The enclosed area that offers privacy and security will provide its residents with unique housing in 46 units with layouts ranging from bedsit + kitchenette to four-bedroom apartments with kitchenette. The underground garage with plenty of parking spaces, greenery and relaxation zones throughout the building come as a matter of course.

Sensitive renovation using old procedures

It is no exaggeration to say that the project is like living in a castle. The original site of Jinonický dvůr, maintained as a cultural monument, dates back to the 11th century. It was devastated during the Thirty Years’ War, and in the 17th century it was replaced by a baroque castle. Its subsequent reconstruction with classicist modifications at the beginning of the 19th century is the work of the Schwarzenberg family, which is still remembered in the sandstone sign above the building’s entrance portal.

The current complex is being sensitively renovated due to intensive cooperation with preservationists, who were there to consult every intervention in the original appearance of the building. This helped to preserve maximum of its historical elements and constructions, such as the two-century-old trusses. “Using technology, we created a 3D model and each element in the trusses was assigned a number, which will make it possible to put back those whose condition allows it into their original positions. The rafters in the apartments will be exposed in order to emphasise the centuries-old history of the castle,” says Jan Kukla, Project Manager.

After dismantling, each wooden element is assessed statically and mycologically, and if it is usable, it is returned to its place. If it is partially usable, it is returned after being covered with new wood. Only when the beam is assessed as destroyed is it replaced by a new structure. This is made by carpenters using mortise and tenons, without metal elements. Carpenters work precisely and in the old-fashioned way during the reconstruction. Beamed ceilings and some other original building elements in the interiors of the new apartments will remain exposed.

Unique genius loci

When in the original complex, you can come across other reconstructed elements that are completely unique and give the whole project an extraordinary genius loci. Whether it is baroque or classicist supporting structures, magnificent ceilings and vaults, the original baroque portal for the staircase to the first floor of the north wing or the restored sundial. The castle’s pride is a tower with a historic clockwork, which contains original elements.

What represented a big challenge for renovation was the beautiful original fountain situated in the grounds of Jinonický dvůr, which is one of the dominant features of the common outdoor areas of the enclosed complex. Preservationists helped with the placement of the original dismantled fountain above the ceiling of the underground garages. The goal was for the fountain to work but not leak out into the garages. The only system that does not let through any moisture is the historically proven lead tub, which was also part of the original fountain, and was therefore retained in the new refurbished one, which was carefully dismantled and returned to its original place.

“Working with the preservationists was very fiddly in order to help to fine-tune every detail. But they also allowed us modern elements, for instance the frameless windows on the facade of the former granary, which filled the previously blank elements. The very modern structures thus support the historical essence of the building. The same applies to dormer-windows, where we also discussed everything with the preservationists intensively. And the situation was similar with the construction of replica chimneys, which do not serve, in their new form, to exhaust combustion products, but as outlets for air conditioning and ventilation,” explains Jan Kukla.

Modern housing in a historic complex

The Jinonický dvůr project offers units with layouts ranging from bedsit + kitchenette to four-bedroom units that are exceptional in terms of their disposition, layout and spaciousness. This is premium housing of a high standard with elements of the original architecture, which can be felt in every corner. With regard to safety and privacy, Jinonický dvůr is built as an enclosed and impassable monitored area, where all traffic is diverted to the underground. No one within the entire area will be disturbed by passing cars then. Emphasis was also placed on plenty of greenery, front gardens and relaxation zones.

Completion of the second phase of the Jinonický dvůr project is planned for the second quarter of 2023, and the currently available units can be found at www.vinvest.cz.

Galerie Pernerka has progressed into the next stage

Pardubice will be enriched with a new commercial and social centre, Galerie Pernerka. It will be located in the ‘fore-station’ location, in the premises of the former distillery.

Galerie Pernerka will fill an unsightly gap in the city centre and, together with the railway station, create an imaginary gateway to the city. As the general designer, Obermeyer Helika completed the documentation for the realization of the construction, which will be used for the selection of the general contractor. Furthermore, they are currently working on the negotiation of a building permit and the processing of documents necessary for the rental of units. The project takes up an area of 28,500 sq m and its concept is based on the idea of a city block, which is defined by four interconnected and architecturally unique masses. Their architectural concept reflects their functional content.

A multifunctional project for all generations

The multifunctional complex Galerie Pernerka will offer not only modern premises for shops, services, restaurants and cafes, as well as a multiplex cinema and spaces for other entertainment. The complex is also to include an hotel and a multifunctional congress hall. Visitors from the public will certainly appreciate the freely accessible public areas adjacent to the building. Children and their parents will surely be delighted by the planned children’s world and the new wellness centre.

The project also includes a new cycleway surrounding the entire building from the east and north. Pedestrian safety will be ensured by a footbridge built over the busy Palackého Street. A carpark with a capacity of up to 1,200 cars will be created in the basement and on the roof of the building. A smaller park with grown trees will be created on the eastern side, which will connect the Pernerka Gallery with Palackého Street in the direction from the centre. In connection with current ecological trends, the building is designed with a green facade and also a green roof. The need for water for these natural features will be covered by the distribution of utility water from a storage tank supplied with rainwater from the roofs. Waste heat from machine cooling will be used to preheat the heating water for more economical operation of the building.

The 3D model gives a closer idea about the project

“The Galerie Pernerka project is basically a design of a new city block, which includes shops, restaurants, offices, a hotel, a multifunctional social hall, a fitness centre, children’s world and spaces for additional functions and sports activities. Work on the project has been ongoing since 2019,” informs Ing. Jaroslav Němeček, Project Manager at Obermeyer Helika. The investor of the project, Redstone house s. r. o., chose the renowned company Chapman Taylor as architects. The leasable area is approximately 50,000 sq m. “Cooperation between all parties involved – investor, designer, architects and others – runs smoothly thanks to the investor’s accommodating approach to modern technologies. Creating a 3D model of the future building in the Autodesk Revit programme allows one to walk through the building that does not yet exist virtually. The virtual reality makes it possible to see the context of the place, inspect the facade, for instance, and get a more accurate idea of the functioning of the building. Thanks to the 3D solution, the entire project is better coordinated and better controlled,” says Jaroslav Němeček.

For our projects, we apply sense and sensibility for housing

Last year, the development company Horizon Holding celebrated 20 years of operation in the Czech residential market and this year, they plan to hand over 500 apartments to new owners.

However, they do not only focus on the construction of individual housing blocks, but they also participate in the local infrastructure and landscaping of the surrounding area of the projects. Yishay Furman, CEO at Horizon, spoke to us about their current projects and plans for the future.

In the previous interviews, you presented some of your projects, including AURA Statenice, Zahálka, Modřanka Residence and Kay River Lofts. How do they proceed?

We now successfully continue with the sales of the last phase of Zahálka located next to the Hodkovičky golf course. We just sold out all 355 apartments in nearby Rezidence Modřanka, where are only two retail units left. We recently handed over all 55 units to the clients of Kay River lofts in Karlín and 148 flats to clients at Rezidence Čámovka in Čimice, where we plan to start the next phase soon. Recently, we started sales of our project AURA Statenice with 79 family houses. This project is located near Prague 6 with parking and plots up to 1,500 sq m. Infrastructure works are already ongoing for the last year. We are about to donate more than 100 milion CZK to the village for infrastructure and other facilities as water treatment system, school, etc., up to 3,000 sq m will be designated for retail and will serve current and future residents.

You have started some other projects. What makes them interesting? And what makes your projects different from others?

As I mentioned before, we plan to start the 3rd phase of Čámovka with 400 flats. We also plan to start projects in the city center – Rezidence Blízká in Karlín with 230 apartments and URBANIKA in Smíchov with 160 ones, with beautiful views of Vyšehrad and Prague Castle. For our projects – we always think of them in all complexity – we apply sense and sensibility for housing. We integrate parks, playgrounds for children and even pets or communal gardens. We want to contribute to the locality where we built, we consult what is best with experts. For example, this year in our project Zahálka, we finished the revitalization of Zátiší brook (Zátišský potok), where we restored its basin which was lost underground for a long time. Our projects also receive BREEAM certifications for its sustainability. We apply green roofs, drainage water systems for re-use, recuperation, etc.

Which one would you like to live in?

As I said once before, our projects are like our children. You love them all. But in this case, I would say that after living for the last 17 years in Statenice and Horoměřice, AURA to me is a great project which will welcome families and will renew and refresh the village. As there are big units with huge gardens, it will be a great neighborhood.

There is a constant demand for apartments in Prague. More mobile people buy them as an investment and rent them out to those less mobile who can’t afford a mortgage. How is this reflected in your business?

The fact that flats became expensive is a fact! But people must live somewhere so there will be buyers and if not the final buyers, so it will be investors who will lease the flats. The rents have increased dramatically in the last year. We also believe in that trend and aim two or three projects of ours to keep as flats for rent.

The end of the year is slowly approaching, when the balancing period begins. How will you evaluate this year, if everything goes according to the previous assumptions?

This year we will handover around 500 apartments in total, which is the biggest amount in the history of the company. As we celebrated 20 years on the market as a developer last year, I think it is a very nice milestone for us.

Do you have any predictions for next year? How will the situation develop?

I believe that the market can’t and will not stop. The fact that construction costs increased, plus the expensive interest rate will slow for a while the sales and the increase of the prices, but as there will be small amounts of flats in the market – they will be sold. Prague can’t stay with 2,000–3,000 flats a year and must have at least 6,000–7,000 new ones to meet the demand. Today the situation worldwide is problematic with high inflation and worries, but I guess that during 2023 and 2024 things will come back to the stage as was 2021.

The (r)evolution of residential development

Construction costs are rising before residential developers’ eyes. Many projects that are under construction are becoming more expensive, some are getting delayed, others are even suspended due to high costs. What solution do the developers have in the current situation?

One of the ways to reduce construction costs is to build from pre-prepared components (so-called prefabs) and thus reduce the construction time to a minimum. What shows a clear direction in this respect are prefabricated wooden buildings, which are built within a month. This construction pace reduces the overall construction costs and its impact on the environment. Prefabricated wooden buildings are becoming a clear choice not only for families, but also for developers. The largest Czech manufacturer of wooden buildings, RD Rýmařov, which has already realized around 26,000 buildings in more than 50 years of their existence, has therefore been very busy in recent months.

“Developers are showing more and more interest in combined buildings. Apart from fast construction, they appreciate the many years of know-how of our production plant and especially the delivery of turnkey houses. They don’t have to deal with problems that come with coordinating subcontractors or supply failures. We also offer them solutions as to how to reduce the impact of construction on the environment,” says Lukáš Foral, co-founder of the investment group Progresus Invest Holding, whose portfolio includes RD Rýmařov.

Built within a month and without raising prices

Fast construction is what cuts developers’ costs fundamentally. “Thanks to the prefabrication and complete production of our houses in the factory, the rough structure is built on the plot in a few days like a modern jigsaw puzzle. After further adjustments, you can live in the house within a month. You simply won’t get this lucky with concrete or brick houses,” Lukáš Foral describes the biggest benefit of prefabricated wooden buildings.

Fast production and assembly are also guaranteed by the automation in the production plant in Rýmařov. Thanks to its many years of tradition in the Czech construction market and long-term relationships with suppliers, RD Rýmařov was, at the beginning of the summer, able to launch an event that guarantees the price of the houses and meeting the deadline. Every month, the plant, which is located in the heart of the Jeseníky Mountains, increases its capacity, and wooden buildings are simply experiencing a boom.

“We realize that the guarantee of meeting the deadline and the price is crucial for our customers in the current economic situation. No one wants the construction to become several times more expensive in the process. At the beginning of the summer, we therefore launched an action within the framework of which we froze the prices of our houses, which was very much welcomed by our customers,” says Jiří Buchal, director of the RD Rýmařov production plant.

ESG solutions for both developers and cities

Developers and cities are beginning to realize the necessity of climate commitments, and prefabricated wooden buildings offer a clear solution there. Thanks to its ability to absorb large amounts of CO2 emissions, wood is the only climate-neutral building material. At the same time, it is a renewable natural resource that returns to nature in the form of new plants. “Can you grow and replant concrete, for instance?” says Lukáš Foral, co-founder of the Progresus Invest Holding Group, wittily.

Careful construction based on prefabricated wooden components also fundamentally eliminates soil disturbance on the plot as well as within the surrounding greenery. Thanks to the speed of construction, the neighbours are not bothered by excessive noise and dust.

Healthy homes that save energy and money

Apart from climate neutrality, wood also stands out due to its excellent thermal insulation properties. It does not create thermal bridges which would allow for heat escape from houses. This fundamentally reduces the costs of heating, which is a key benefit for every customer these days. “You heat the house much faster than you would the ordinary brick houses, because you do not heat the massive perimeter walls, but practically only the living space. The overall operating costs are also significantly reduced by the combination of a heat pump and a photovoltaic system. These are included in our house’ price. This way you can save thousands to tens of thousands of crowns a year,” says Jiří Buchal, director of the Rýmařov production plant.

It seems we got right into a revolutionary new era of fast and sustainable living. This saves time, money and is kind to the surrounding nature. Moreover, investors, who are currently all for green investment, are beginning to realize the ecological benefits of development projects based on prefabricated wooden buildings.

Oaks Prague is going through a refreshing transformation

A unique project Oaks Prague is being built in a picturesque landscape near Prague, in the village of Nebřenice. Its developer is Arendon Development Company, a. s., with the support of the London investment group Kew Capital.

There is currently an 18-hole golf course licensed by the PGA National. Although we fell behind schedule during the pandemic, the whole project is expected to be completed by 2028. The winner of the tender for gastronomy operator, which is the proven concept by the well-known Italian culinary guru Riccardo Lucque of La Collezione, has also been announced to the public. In addition to a premium bistro, La Bottega Oaks Deli Bistro will also offer a shop with quality Italian ingredients and products in the residential area of the village common. The Club House will be placed in the reconstructed Chateau, which was originally built by the von Schuttelsberg family and will become the dominant feature of the golf course. Golfers can look forward to quality facilities and the La Finestra Oaks Golf Club there.

The Chairman of the Board of Directors of Arendon, Ing. Jan Zemánek, MBA, spoke to us about the entire Oaks Prague project.

What activities does the development company Arendon engage in?

Arendon is specific for dealing with the development of a single project, and that is Oaks Prague. It may sound a little strange, but we have to realize that Oaks Prague is not a simple and standard development project. With a bit of exaggeration, it is actually a development of a new settlement, which is planned and implemented as a whole complex, which is something that has not happened in the Czech Republic for several decades. It is such a large complex that we do not consider it a project, but a development programme. It comes in several parts and is divided into several phases, which will be implemented gradually. The plan is currently set for 2028.

What specific parts is the programme divided into?

It is divided according to the location of the individual parts, their location as well as their function. The primary purpose is a residential function – housing, which will come in several forms. We plan to build a total of 480 housing units on the golf course, from small housing blocks to luxury residences. In the meantime, there are a number of other products, such as detached houses, smaller residences, semi-detached houses, terraced houses, etc.

What is the main residential function and its distribution?

We have a total of five product lines, which are distributed in two main locations. One of them is a luxury golf residence, which is situated virtually in the middle of the golf course, near the current Chateau, which has already been there for 250 years. We are converting it into a golf club and a boutique hotel will be built nearby. The second part of the residential development is located in the village, where there are housing blocks and various types of family houses.

What other functions are anticipated in the project?

The second group of functions should provide the residents with a good quality of life and enable them to engage in a variety of activities. The overall character of the development, the urban concept, contributes to this quality of life. The first completed part of the whole project is a golf course. It holds a PGA National license, which represents the hallmark of the best quality you can get in the world of golf. There can be only one course with this license in each country – except for the USA where it originated. It should be noted that the golf course is operated by Troon Privée, which is one of the world’s leading golf course operators. This is evidenced by the fact that our golf course has twice been awarded the best golf course in the Czech Republic and the best golf course in Europe. This is granted every two years, i.e., in 2020. I hope that we will retain the title again this year.

Golf plays a very important role in the project.

The golf complex also comes with a clubhouse in the Nebřenice Chateau, which we are reconstructing. We plan to open in April this year. Apart from the aforementioned restaurant, which will of course be open to the general public, it will provide facilities for golf tournaments. Whilst we have already started talking about the area of hospitality, then one of the essential parts of the first stage around the square, which is currently being completed, is Deli Bistro. A restaurant with the same operator as the Chateau, La Collezione, which belongs to the top restaurants. You may know the concept of La Bottega restaurants. It will also include a small shop. Another important part of the project will be the hotel near the Chateau. It will be interesting for new residents of Oaks Prague as it will offer a number of attractive functions, especially, for the Czech Republic, unique and large spa and wellness, fitness, several restaurant and social facilities and other associated services. It will provide exclusive facilities for business meetings and social events as well as family celebrations. The hotel will be operated by the world leader in the ‘sustainable luxury’ segment.

What other infrastructure will the Oaks Prague project include?

A very important part of the whole community will be a nursery school, whose construction is planned for the second quarter of this year near the village centre. Each of the housing blocks that we build will include commercial rental premises for shops, restaurants, cafes, patisseries, etc. But we want to leave it to organic growth. We do not want to manage it a priori, except for Deli Bistro, which will open in April.

What other sports activities besides golf will you offer to the residents?

Together with the surrounding municipalities, we create, reconstruct and complement a network of cycleways, which will cover tens of kilometres on the Popovičky – Křížkový Újezdec – Petříkov route. The project should include a tennis academy and also a horse-riding centre. These are the four main sports pillars: golf, cycling, tennis, horse riding. We are also considering building a biotope – recreational water areas with ecological water treatment that does not use chemicals. And a lot of other things that are related to physical condition and will be part of the associated operations at the hotel.

You also mentioned that there is a plan for a commercial part. What is your vision in this regard? 

We certainly do not forget commercial or business matters. Once the 480 housing units are completed, and we account with an average of three residents per housing unit, we reach a number of about 1,500 residents. Not everyone will live there all the time, so if we reduce it to two-thirds, we get to a number of thousand residents. The average size of Czech municipalities outside large cities is 500 inhabitants. That makes it a kind of a small town and people need to buy basic things. The first smaller store will commence operation from the beginning and another one is planned near the centre, depending on how the village will develop. We anticipate that this will need to be complemented by additional retail premises.

The initial vision was to build a historic village with modern elements. Where have the current thoughts gone? 

We deviated from the original designation of the village. The original concept of the whole project was a bit negatively affected by the fact that it was created by foreigners. They have a somewhat naive approach to these things. They are very enthusiastic about Czech historical buildings and have the feeling that we want to live in some replicas of historical sights. Such people certainly exist, but there are more of those who want to buy a modern property, not only in terms of technology, but also in terms of architectural expression. The project has long been based on the opposite approach – to create reminiscence of a traditional Czech village, including architectural forms that were created 250 years ago for farmers – including barns, cowsheds, etc. We did not consider it the right concept, so we changed it. We are building a ‘housing estate’ for people of the 21st century, who do not want to live in the city, but within its vicinity, with nature within their reach, but still want to have the comfort as if they did live in the city, plus that ‘little something’ they cannot find in the city. It takes 20 minutes to get to the centre of Prague, so if someone wants to go to the theatre or somewhere else in the evening, they get in the car and fulfil their wishes within half an hour.

How will the project be further presented then?

Our inspiration is in the ‘garden districts’ of Hanspaulka, Ořechovka, Starý Spořilov and others. They have several common denominators. The first one is that they originated at the same time – 100 years ago – on the periphery. Maybe the periphery won’t even be there in 100 years. The second one is that all the settlements were created with an urban concept and used architectural morphology that connected them and integrated the individual houses. When you look at old Spořilov, you see that the houses are actually typical and repetitive, which we perceive positively. Because if you have 300 houses and each of them is different, each has a different fence and colour and uses different materials, the whole concept will not be ideal from an architectural point of view or from the point of view of maintaining the quality of the environment, which is a very important issue for us. The ‘folk creativity’ in the effort to customize each house is really very colourful.

How do you want the new residents of Oaks Prague to respect these intentions?

We are trying to create a framework so that these issues are maintained and work in the long term. There will be Homeowners’ Associations – the law actually does not allow otherwise. And at the same time also a kind of ‘interest organization’ of all the residents, which will, to a certain extent, take care of the emerging settlement as a whole. We would also like certain rules to apply to individual house modifications. It should be in the interest of all the residents to take care of the environment that will be created, to maintain it and to preserve the shape that creates the character of the environment and its value as far as possible. If everyone modified their houses as they wished, the environment would lose its uniqueness and character.

The assignment was processed by several architectural studios. Each architect has his own style. To what extent did you manage to conceptually harmonize the individual proposals?

The original concept was somewhat naive, also from the point of view that it would be designed by dozens of architects, because such a thing could not be controlled. Imagine that you have to manage, for example, 50 architectural teams and each of them creates a unique design. You need to check if it fits your specifications and ideas. Plus, you’re building on a speculative basis, so, you don’t know who is going to use that particular house. That can’t be done!

But the construction began with this original concept…

Yes, in that spirit, but not extremely. The first part is now being completed. There are housing blocks designed by various world-famous architects and a similar concept was intended for the rest. We have abandoned this concept because we really would not be able to achieve the goal we want with this approach. We have reduced the number of architectural teams to approximately four studios. We are now finalizing their selection. In fact, we spent the whole of last year modifying our plan in order to give the architects meaningful assignments in terms of house size, land size, number of rooms, etc., to make it compatible with market requirements. We now have a pre-selection of several architectural teams with which we want to start designing the rest of Oaks Prague.

Does this represent another fundamental change in the concept?

We have a part with 70 housing units ready for construction, which we plan to start implementing in the third quarter of this year. The design was participated on by the same architects as in the first part, which allows for a certain character to be preserved there. What changed in the concept was that we want to use quality architectural studios and we want fewer of them. The individual parts of the project, which are logically separated by roads, parks and other public areas, will have a different character, but there will be a uniform morphology within the framework of certain smaller complexes. There will be different types of houses – detached and terraced – but from one architect who will follow certain design rules. Around the plaza in the central part of Oaks Prague, we will implement denser and higher development with housing blocks. The height of the houses comes down towards the outskirts of the village, and the development is distributed more loosely. That means that it has the character of a typical town, though without a church.

How does the current market price development affect the Oaks Prague project?

We are affected by this just like any other developer. The sale price of the property reflects the entire cost spectrum. It includes the acquisition price of land, implementation costs, costs for processing project documentation, project management and other consulting matters. Another important component is the cost of financing, because almost no one implements real estate projects from their own resources, they always borrow some financial resources. And then you also have to make some profit… Building costs basically represent about half of the total development costs. And if they increase by 20% or 40%, you get into a situation where you need to aliquot the sale price if you want to keep at least some profit. And it is not, unfortunately, just a question of construction costs, but also of rising interest rates over the last three months. And we can go on: higher energy costs, higher costs for people who want more money, because everything is more expensive. The inflationary spiral is spinning. So, we can’t sell at prices that worked a year or two ago.

At what stage is the project now?

We are currently completing the first stage, which has 60 apartments in the eastern part of the project. We have sold 60% because there was some delay. We have started the final building approval process – we have three family houses from the Irish architects McGarry-Moon approved. Other buildings will undergo final building approval in the first months of this year and we anticipate that the first residents could move in in the second quarter. Upon completion, we expect a large increase in interest in buying properties. Because this is a unique project, a lot of people can’t really imagine what it entails and how it will work. What is important to us in this context is the fact that we will not only open and put into operation apartments (mainly the housing blocks in the centre are completed), but there will also be the already mentioned civic amenities. Oaks Prague will simply come to life. It will not only be housing, but there will be commercial premises on the ground floor. We are also moving part of our company there, and the sales centre, which is still in an impromptu building on a golf course, will start operating there in March.

Last of all, outline the further construction schedule.

We would like to complete the entire program by 2028, which means we still have a long way to go. We have significantly intensified our activities by creating larger units that we want to design and, if possible, to implement as fast as possible, though in a good quality. We are completing the first phase, which will be followed smoothly by the second phase, which comprises two buildings that look like six. They have shared underground garages and will have around 70 apartments. In the near future, we will start the construction of a nursery school. We have started the construction of the first luxury residences at the southern part of the golf course near the square. This phase should be completed within two years. This will then be followed smoothly by the construction of larger units. We also plan to start building the hotel complex within two years’ time and complete the first group of golf residences in parallel with this.

Arnošt Wagner / Photo: Jan Mihaliček

Häfele: New major construction project in Nagold Bold investment for the future

The international specialist for hardware technology, electronic access control systems and LED lighting is planning a visionary construction project and is investing in itsheadquarters in Nagold located in the Black Forest with foresighted entrepreneurial spirit. The company is thus once again making a commitment to the location, setting new standards in terms of logistics and production and securing modern and sustainable jobs for its employees.
After last year’s construction work for an additional high-bay warehouse in the north of the existing distribution centre (launch in spring 2022), the next construction project is already on the agenda. Häfele is thereby not only investing in its outstanding logistics and the constantly growing needs of its customers, but also and above all in the Nagold location in the northern Black Forest.
In the process of this comprehensive construction project, a high-tech building complex is being built in a modern interpretation of the Black Forest style, creating new logistics and production capacities and providing a place of inspiration and exchange that can also be used by other companies and business partners.
The large-scale building complex (“Häfele Dynamics Centre”) creates jobs with a promising future and is a showcase example of innovative strength and a sense of community, because among other things, thought is being given to locating facilities that will also benefit employees of other companies in Nagold.
„With this building project, we are investing in the future of our company and especially in our home base here in the Black Forest,“ says CEO Sibylle Thierer. „We set the bar very high for ourselves and want to live up to our pioneering role in the industry by constantly perfecting our technology and logistics excellence and setting fresh impulses in our industry. You can be excited!“

From the very beginning: Sustainable.
The recyclability of the materials used for construction is already examined, evaluated and carefully selected both individually and in combination in the planning stage. If, for example, it is necessary to design load-bearing structures for wide-span hall ceilings that can technically only be produced in reinforced concrete, indirect measures are taken from the outset to compensate for the resulting carbon footprint. A fire-fighting water cistern is used as a regenerative source for the heating and cooling supply. This storage cistern under the plant enables the buffering of energy that is not continuously available or required. Rainwater is thus a further, essential component in the compensation strategy for unavoidable CO² footprint caused by building materials and construction methods.
The Häfele Dynamics Centre will also have large green roofs and selected flora, which also contributes to a sustainable compensation of emissions. Construction of the futuristic new building on the southern side of the existing dispatch centre in Nagold will begin at the end of 2022. The planned construction period is five years.

The Czech-Singapore Chamber of Commerce as a gateway to successful business

The Czech-Singapore Chamber of Commerce unites over 90 Czech companies with business interests in Singapore and south-east Asia. At the same time, it is a platform for the meeting of important personalities from the highest business circles in the Czech Republic and Singapore.

The city-state of Singapore, officially the Republic of Singapore, is located on the island of the same name and has 63 adjacent isles near the southern section of the Malay Peninsula. It has a total area of 729 sq km and a population of almost 5.7 million, which represents the third highest population density in the world. The official languages are English, Chinese, Malay and Tamil. The name Singapore comes from Sanskrit and means Lion City. This predisposes it to a certain extent to the position of leader in the introduction of modern technologies, dynamic construction and smart city.

We asked the President of the Czech-Singapore Chamber of Commerce, Marcel Bednář, about current relations and trade activities between the two countries.

To begin with, I must ask about the post-covid situation. How did its effects show up in Singapore?

This is a rather difficult question to begin with. Following the spread of the virus in China, many foreign companies, including German, British and Dutch, vacated the playing field. Other countries in south-east Asia have also left Singapore. The Singaporeans imposed a hard lockdown that lasted many long months.

And how did this unusual situation affect the inhabitants?

The Singaporeans are very happy to meet, either after work or for lunch. They live a much richer social life, which is more connected with work and business life, than we are used to in the Czech Republic. So, the Singaporeans were far more affected with regards to this personal level. But given the proliferation of digital and mobile technologies, as many companies in Singapore operate on this basis, this was not such a big problem for them. If they have a personal or friendly relationship with a foreign business partner from the past, distance communication works fine.

What lifestyle do Singaporeans actually promote?

They are not used to spending a lot of time at home. Most of them live in apartments, whether public or private – often in condominiums, which are complexes of luxury apartment buildings. Their housing and/or homes are not designed for them to spend time in from morning to evening, nor are they used to preparing food at home. Whether it’s lunch or dinner – they don’t cook at home. They solve this by eating in bistros, restaurants or shopping centres. There are food courts, which are covered spaces with one bistro next to another – under very strict hygienic control, so everything is fine in this respect. Therefore, they have the opportunity to eat in this way within the immediate vicinity of their homes. It is very cheap and they can choose from an inexhaustible number of stands – where quality and hygiene are guaranteed. This is their usual lifestyle. With the arrival of covid, they had to lock themselves in their homes and their lives changed dramatically.

The issue of housing and its availability has recently been dramatized in the Czech Republic. What is the situation in Singapore?

The housing situation in Singapore is divided into about 80% of state-owned apartments and 20% of private apartments. The Singaporean government invests huge sums of money in the construction of state housing and housing support. This is actually a historical matter because, in times of the ‘founding father’ Lee Kuan Yew, who was the head of the People’s Action Party (PAP), it was decided in the past that Singapore’s perspective lies in the middle class with guaranteed quality housing, which is the basis for future economic success and prosperity. They have invested heavily through the statutory board, the Housing & Development Board (HDB), in the construction of state-owned housing for which Singaporeans may qualify under certain conditions. The 20% of private apartments is another matter, which is often dealt with in the form of condominiums.

What is life in a Singapore condominium like?

This variant of housing is of a very high level, where you have several high-rise buildings, such as twelve-storey ones, and there are several residential units on each floor. Five such high-rise buildings, for instance, form an enclosed complex with security service and building management, which takes very good care of the area. Each time you enter the building, you need to identify yourself with a chip card. Inhabitants are provided with a full service there, in fact they are taken care as in a five-star hotel. The basic principle is that everyone who lives in these apartments feels like being in a hotel or on holiday. You do not only have an apartment there but it also includes a shared swimming pool, a terrace with barbecue facilities and spaces where social events are regularly held with programmes for both adults and children. Sports activities are provided by tennis and squash courts, table tennis tables, a gym – all this is part of the housing and a matter of course. Condominiums also deal with parking. There are large garages in the underground so that cars do not park on the street.

A recently released information states that there are new apartments to be built in the Tengah district of Singapore.

But this is a slightly different type of housing than the aforementioned condominiums. The Tengah project is being implemented by the state agency HDB through which the Singapore government supports construction of state housing. And as for the Tengah district, it is a prime example of a smart city, or let’s say a smart district in Singapore, of which there are currently several. For instance, it is the Punggol District and the campus of the National Technology University of Singapore. These are actually three smart cities in the middle of Singapore. In fact, two smart cities and one smart university campus, which also ranks among smart cities.

What will make the Tengah district unique?

Tengah is to be a model smart city with the construction of 42,000 apartments, where not only waste collection will be integrated with new digital technologies with the Internet of Things, such as smart bins, which will respond not only to waste filling, but also in case of fire, will be automatically extinguished. At the same time, sensors in the smart district will also respond to odours that irritate the neighbourhood. Information is passed through the application to the appropriate employees who are closest, so that they can resolve the situation immediately. However, Tengah is not just about waste management, but about a number of digital elements that are implemented in residents’ lives.

What is actually the vision of a smart city in Singapore?

The vision is that the surface will be pure green. That means buildings, greenery and pedestrian zones. In other words, only people will move on the earth’s surface. Car traffic will be one floor below the surface, including buses, and the underground below all that. All traffic will be underground only, which is also demonstrated on the visualization of Tengah. This vision is promoted not only by HDB, but many Singaporean companies that are also involved in the project, such as ST Engineering, which participate in the smart transport system.

Is it possible to compare the duration of the project realization in our country and in Singapore?

I can’t compare it totally but Singapore is experiencing a huge construction boom. Something is always being built there and everything is moving forward very quickly. What is common is that a skyscraper is functionally and energetically obsolete and outdated after 30–35 years, so, they tear it down and then build a new one in its place. That shows that, compared to us, they are not afraid to take radical steps. Of course, it also has a darker side. That is why Singapore is a city of skyscrapers and, with few exceptions, beautiful historic buildings, which you can find in abundance in the Czech Republic, are missing here. So, as we Czechs like to go for what we don’t have at home, i.e., somewhere under a palm tree to the seaside, the Singaporeans like to come and see castles, chateaus and historic buildings. So, state-of-the-art skyscrapers cannot be considered an unconditional advantage.

What future does the Czech-Singapore Chamber of Commerce plan? 

Our goal is to reach the level of trade and investment with Czech-Japanese or Czech-Korean relations, for example. We are not at that level yet, so there is room for improvement. These are our ambitions. And I hope that the reopening of the Czech Embassy in Singapore will help us to do just that. The embassy in Singapore will be opened during September by Ambassador Michaela Froňková, who, thanks to her experience in demanding territories, belongs to the top branch of the Czech diplomatic service. What we expect from the establishment of the embassy is a new era of Czech-Singaporean relations and we hope that this will, with regards to Singaporean companies and partners, also represent yet another positive signal, which will revive trade relations even more.

That is one of the goals. What are the others?

It would be nice if the Republic of Singapore opened an embassy in Prague. This can represent another big step that would be very helpful to Czech business.

Is it possible to specifically present the successes of Czech companies in Singapore?

There are things that are visible to Singaporeans. An example can be found at Singapore’s Changi Airport: beautiful design installations from Lasvit, which are passed daily by a large number of people. Another company works on the desalination of seawater and thus helps local water management – their activities are highly appreciated on the Singaporean side. Similarly prestigious are smart sensors from a Czech company, which are installed on the Singapore Formula 1 circuit. Another Czech company successfully supplies smart medical beds to Singapore hospitals and medical facilities. So, the range of fields is wide, not to mention traditional brands such as Baťa. And as the Singaporeans associate Bata with childhood or adolescence, every Singaporean who is now 50+ wore Baťa shoes. A bit of a problem is that they think it is an Indonesian or Indian brand and there is no longer a direct link to the Czech Republic. It is similar with Škoda cars, because in their opinion it is a German car. Unfortunately, they often have no idea that it is manufactured in our country. And that is actually work for Czech institutions and the Czech-Singapore Chamber of Commerce to make this connection in the minds of the Singaporeans. And to show that the Czech Republic can offer not only these traditional brands, but that there are also other companies that can offer interesting technologies or products to use or for trade.

In which fields do you see opportunities?

There are many of them. We mentioned, for instance, smart cities and the Internet of Things, which are industries in which Singaporeans invest a large amount of money and where the Singapore government very generously supports domestic companies and their further expansion. Then there is fintech. Singapore is an Asian financial centre that provides facilities for fintech companies and banks, so business with finance and the application of technology in finance is large. Then there are various health and medical technologies, biotechnologies, i.e., fields in which Czech companies have great opportunities. And also, IT and the digital industry including progressive segments such as robotics, artificial intelligence, etc. Singaporeans are looking for prime solutions in these fields and I am convinced that they can find them in many Czech companies.

The chamber was active in the field of education, seminars and conferences. Will you continue this trend? 

We certainly want to continue educational events for the benefit of Czech companies and to do so in the form of business and entrepreneurial conferences. Our aim is to pass on information about interesting business opportunities in Singapore to Czech companies, ideally with the participation of guests from the fields of politics and business. Furthermore, we want to organize networking events for the members of the chamber, because we perceive that social life has been subdued for several months, so, we want to make it up to them. The Czech-Singapore Chamber of Commerce is not only about a bilateral trade relationship, but we also try to be a management club in which participants can share not only their experiences, contacts and information, but also negotiate deals with each other. Such social forcefulness of the chamber is very important to us.

Arnošt Wagner / Photo: archive, depositphotos and pixabay

Hidden Mediterranean cuisine in Dejvice

Nobody would expect it from the outside. An inconspicuous Mediterranean restaurant is hidden in the Vienna House Diplomat Hotel in Dejvice, Prague.

The restaurant Bull & Bonito, with a focus on Mediterranean cuisine, was established here in 2019. The kitchen is ruled with sharp knives by chef Jan Schánil and his team.

History and concept

Over the last few years, the Prague part of Dejvice has become a place where you will find a lot of new cafes and restaurants. And not only Dejvice but also Vinohrady, Karlín or Letná have experienced a “boom” of new interesting places where you can find great coffee spots and enjoy world-class gastronomy.

The Bull & Bonito restaurant is located in the iconic Diplomat Hotel in Dejvice, which belongs to the Vienna House hotel chain group. Hotel Diplomat with 400 rooms underwent a complete reconstruction, which was completed in the spring of 2019. Thanks to this reconstruction, a new concept of the restaurant was opened with intention to open to local guests and neighbours. The architectural interior design was created by BWM Architects studio in Vienna and adapted the evolving environment by alternating colours, different materials and light compositions. The interior of the restaurant is dominated by a sculpture of a bull, wood and earthy tones, which are elegantly complemented by contrasting colours.

The restaurant works completely independent of the hotel. It has a separate entrance, but you can also get inside from the hotel lobby. The restaurant also has a partially covered terrace, which can be used for sitting throughout the year.

Why Bull & Bonito?

Imagine cities like Rome, Venice, St. Tropez, Marseille, Barcelona or Valencia. What do you imagine about these cities? Most of us imagine the sun, the sea, the peace and the holidays. In Bull & Bonito, you will feel somewhere along the Mediterranean Sea. The restaurant is inspired by the vibrant and relaxed atmosphere, especially by the variety of dishes of southern Europe.

Bull & Bonito combines quality and fresh ingredients. The word ‘Bull’ represents quality meat and ‘Bonito’ the best of the sea. Chef Jan Schánil prepares dishes based on the best that Mediterranean cuisine has to offer. In addition to quality meat from Czech farmers, the menu also includes Spanish ham, which matured for 24 months. The highlight of the kitchen is the water grill, from which grilled meats are much healthier. When grilling, the fat drips into the water placed under the grill grate, thus prevents the formation of carcinogenic substances.

Let´s discover Mediterranean cuisine

Chef Jan Schánil recommends tasting an Andalusian appetizer of almonds, garlic and milk Ajo blanco with freshly baked homemade focaccia. From the permanent menu, the speciality is Tomahawk pork chop with a spicy sauce Salsa verde. The aim is to use local and seasonal ingredients as much as possible. The menu changes regularly according to seasonal foods. The restaurant is open Monday to Sunday from 11:30 until 22:00. During the working week, you can go to the restaurant for a lunch menu. Thanks to its great location near Vítězné Square, it is an ideal place for family celebrations, as well as a romantic dinner for two.

Klára Laudátová / foto: vienna house