Developer YIT enters into the Vesi Hostivař project with RSJ Investments

Prague – Finnish developer YIT has entered into a partnership with the RSJ Investments group, co-owned by entrepreneur Karel Janeček. They will collaborate on the Vesi Hostivař residential complex project in Prague's Hostivař district. This is according to a press release from the developer, which is available to ČTK. Previously, objections to the project were raised by the city’s Institute of Planning and Development.

For YIT, this marks the first time in the Czech Republic that it is entering into a partnership for financing its project. "In some cases, we will utilize project financing. This will free up capital for further investments, allowing us to expand our portfolio with new acquisitions," stated Marek Lokaj, CEO of YIT Stavo.

Board member of RSJ Investments Lukáš Musil noted that the group has been collaborating with YIT Slovakia on projects in Bratislava for several years. "Therefore, we wanted to establish a partnership in the Czech Republic as well. The exceptional location full of greenery and its ecological features attracted us to the Vesi Hostivař residential complex. Finding good housing in Prague today that is essentially in the woods yet within reach of all the advantages of a big city is certainly not easy," Musil said.

According to the developer, the Vesi Hostivař complex is being built on the brownfield of a former sawmill near the Hostivař dam. It includes 208 apartments with layouts ranging from 1+k to 4+k, in five buildings.

The entire project emphasizes natural materials and a sensitive harmony with the surrounding nature. In Vesi Hostivař, YIT will also begin using so-called green concrete, which is primarily characterized by the conservation of natural resources and energy needed for its production. The application of this concrete from recycled aggregate will lead to a nearly three percent reduction in carbon dioxide emissions.

As part of its water management strategy, rainwater from retention tanks will be preferentially used for irrigation within the complex. The developer also plans to install a solar power plant to cover part of the electricity consumption in common areas and for the complex's lighting.

In the past, some local residents criticized the project, for instance, because it is located in the protected natural park Hostivař-Záběhlice. The city's Institute of Planning and Development also had objections, as the land of the former sawmill is designated in the land use plan as "other land," where residential development is not permitted. "We submitted an objection to the intention because the character of the development did not correspond to the typology of the accommodation facility, and if apartments were to be built there, the land use plan would have to be changed according to us," stated the institute's spokesperson Marek Vácha. Nevertheless, the building authority of Prague 15 approved the plan despite the objections.

The investor originally announced that the apartments would be for rent, but it is now offering them for sale. "We abandoned the previous plan of securing rentals based on the strategic decision of YIT Group to focus on its core business, namely the construction and sale of residential and mixed-use properties," Lokaj told ČTK. He added that the apartments will be completed as apartment-type units. "We do not anticipate problems with the building authority, as we are proceeding in accordance with the issued building permit, which relates to the original land use plan," he stated.

YIT entered the Czech market in 2008 by acquiring the Czech company Euro Stavokonsult. It had been on the Czech market for nearly 20 years, while Finnish YIT traces its roots back to 1912. YIT Stavo has completed 22 projects in the Czech Republic. Projects currently under construction include Koti Libeň, Vesi Hostivař, the transformation of the Meopta factory into the residential project Parvi Cibulka, and the Suomi Hloubětín project with ten phases of apartment buildings.

The investment group RSJ manages investments in the Czech Republic and abroad. One of the co-owners is Karel Janeček, who announced his candidacy for president in January 2022. The group invests in the construction of both residential and office buildings and in the acquisition of income-generating properties. A significant portion of the managed assets consists of investments in information technology, biotechnology, healthy food, renewable resources, and life sciences.