Developer ECM has acquired land in Pankráci to complete the City project

Prague - The development company ECM has acquired the last necessary private plot of land in Prague's Pankrác for the City project. The plot will see the construction of a residential complex with approximately 13,000 square meters of floor space. ECM estimates the total costs of the residential project at 1.1 billion crowns, as announced in a press release today. The City project also includes the already approved City Tower, which, at 109 meters, is the tallest building in the Czech Republic.
    "The acquisition price is in line with the purchases the company has made here in the past," said Tomáš Laštovka, a member of ECM's management, regarding the value of the acquired land.
    The company estimates that the value of its managed assets was 25 percent higher year-on-year at the end of last year than it had originally anticipated. It also expects that the consolidated net profit for 2007 will surpass the profits from 2006 and 2005. In 2006, the company's net profit fell by 8.5 percent year-on-year to 19 million euros (approximately 491 million crowns).
    At the end of December, ECM announced the issuance of new ordinary shares valued at 5.9 million euros, approximately 157 million crowns at the then-current exchange rate. The company aims to raise funds to finance its future development and investment projects.
    ECM is one of the largest development companies in the Czech market. Its main activities include leasing, selling, and managing properties as well as project development. The company was founded in 1991 by Milan Janků, who is also its majority shareholder. ECM is headquartered in Luxembourg, and Janků owns it through a Dutch fund.
    In Prague, ECM's projects include Biskupský dvůr and another part of the Pankrác complex City, the administrative building CITY Point. ECM shares are traded on the Prague Stock Exchange. In addition to the Czech Republic, the company operates in Russia and China. The total area of the group’s portfolio reaches approximately 500,000 square meters.