REAL ESTATE NEWS

Sekyra Group Wins Rohansky Island

The competition over the property on Rohansky Island has its final winner. The rights to this lucrative, centrally-located piece of land have recently been won by the Sekyra development group.

The decision has been reached in the second round of a lengthy tender, the decisive criterion being the highest financial offer. The winning offer of 1.69 billion Czech crowns made by the Sekyra group was the highest bid out of the three potential candidates. The second highest offer, made by the J & T group was one hundred million Czech crowns lower while the last candidate Ballymore Properties proposed 1.47 billion Czech crowns.

Why is the property on Rohansky Island so lucrative ? Being between Karlin and Liben, it is only three metro stops from the city center with a metro station nearby. The up-and-coming neighborhood of Karlin which once was focused on industry has recently become the target of massive investments. This is evident when one observes the transformation of old factories into stylish living apartments . To avoid future damage similar to the destructive effects of the 2002 floods, the city has taken appropriate measures by installing anti-flood barriers.

According to the development plans of the Sekyra group, the island will host offices, houses, hotels and areas of greenery which will include waterfalls and pathways. What's more, the projected changes also include transforming “Rohansky Island” back into a real island. The stream of the Vltava river dividing the area from the mainland was blocked in the 19th century and should be renewed by the development plan of the Sekyra group.

The competition over this property has, however, not been without controversy. While 8 candidates fulfilled the requirements of the competition, the winning plan has only been chosen from 3 candidates. Certain members of Prague city hall have voiced their disapproval stating that with the other five competitors the city could have received more money. The final offer is lower than the original estimations of up to 4 billion Czech crowns and the city will have to invest a considerable fraction of its income into necessary infrastructure. < back