Developer J&T bought land on Rohanský Island, investing 15 billion CZK there

Prague – The development company J&T Real Estate has purchased two hectares of building land on Rohanský Island in Prague's Karlín from the Rohan Consortium, in which Sekyra Group holds a 50% stake. In the future, it plans to acquire another two hectares and build the New Rohan district for 15 billion crowns. The company announced this in a press release available to ČTK. The specific price of the acquisition was not disclosed, but according to them, the value of one square meter exceeded 20,000 crowns.

Construction of the first phase of the planned project is expected to begin in the second half of next year and will be located at the corner of Voctářova and Štorchova Streets. A total of 258 apartments, three office buildings with services, and a piazzetta will be created. The architectural design was developed by four domestic studios and the renowned Slovenian studio Bevk Perović arhitekti. Including subsequent phases, approximately 1,000 apartments should be built.

In close proximity to New Rohan, a new metropolitan park covering 56 hectares will be established. It will include an outdoor structure with a suspended memorial bell as part of the initiative #9801. It is intended to commemorate the fates of 9,801 bells that were confiscated by Nazi Germany during World War II and melted down for military purposes.

The Rohan Consortium was founded in 2007 and has an option locked with the Prague city hall to purchase land in the Karlín Rohanský Island area. The consortium bought approximately 20 hectares from the city for 1.68 billion crowns. In the area of the island, 55 percent was supposed to be residential buildings, while the rest was to comprise offices. The total number of apartments could range between 1,200 and 1,300 units.

"J&T Real Estate is already successfully implementing the Rustonka project in the broader area; this reference played a significant role in our decision. We have agreed that J&T Real Estate will develop part of the land adjacent to the Libeň Bridge under the separate brand New Rohan, and through mutual cooperation, we will develop the area from both ends simultaneously, which will lead to a significant acceleration of the project," said Leoš Anderle, CEO of Sekyra Group, to ČTK. He did not wish to comment on the specific price of the transaction.

J&T also holds a 32 percent stake in the consortium. The rest is secured by smaller investors. J&T Real Estate bought the land in accordance with the Project Realization Agreement, and the fixed selling price of 8,567 crowns per square meter has since increased due to the inflation index to more than 20,000 crowns. However, the consortium has not yet bought all the planned land from the city.

The overall share of individual investors in the consortium will remain unchanged after the acquisition. Sekyra Group still owns a larger building area than J&T.

"There is no locality with which we have been historically more closely connected than Karlín. We have realized most of our large projects in this district. We completed the Rustonka office complex in 2019. A year later, we completed the new headquarters of J&T Bank near the Invalidovna metro station, and this year we obtained occupancy for the Red Court administrative building," said Dušan Palcr, Chairman of the Board of J&T Real Estate.

J&T Real Estate is a related development company of the banking holding J&T Finance Group SE. Its majority owner is Palcr.