Neocity plans to invest over three billion CZK in Modřany, Prague

PRAHA - The Israeli development company Neocity Group plans to invest over three billion crowns in the construction of a modern housing estate, including a shopping and entertainment center, in Prague Modřany over the next five to six years. In the first phase, which is set to begin in mid-2006, about 400 apartments are expected to be developed. This was stated today by Ehud Udi Kanfi from Neocity Group.
The price per square meter of a new apartment in Modřany will be around 40,000 crowns. According to experts, apartments in Prague are most often sold for between 35,000 and 40,000 crowns per square meter.
The first project the company is carrying out in the Czech market is the Neo Zličín residence in Prague. By the end of 2006, 140 apartments should be built here, with the first phase consisting of 63 apartments ranging from 35 to 120 square meters. The price per square meter is about 35,000 crowns. In the second phase, the company plans to build three residential buildings. Total investments are estimated at 275 million crowns.
Other projects include the construction of a high-rise residential building in Prague 13. Neocity Group intends to build around 200 apartments here, with an anticipated investment of 510 million crowns.
In the Czech Republic and Slovakia, the company plans to invest 50 million euros (approximately 1.5 billion crowns) over the next six years to acquire land for apartment and shopping center construction. Approximately 6,000 housing units should be created, including about 4,000 in the domestic market. This year, the company has invested around 750 million crowns in purchasing land in the domestic market through its subsidiary Neocity Group CZ. Next year, it aims to double investments in the Czech Republic.
Neocity Group also plans to buy land for residential housing outside Prague. It intends to explore the situation in cities such as Brno, Ostrava, Liberec, and Hradec Králové. The company is also planning to acquire land in Bratislava.
The development company Neocity Group was founded by three Israeli groups (the leading Israeli oil consortium Petrolgas Group, Mivney Moranim, and Nairda Group). Over the past ten years, these companies have sold over 10,000 apartments in Israel, Eastern Europe, and North America.
Neocity Group has established a private investment fund with the leading Israeli bank Poalim Capital Markets, which has already raised 100 million dollars. The fund is focused on real estate investments, primarily in residential projects in Israel and Eastern Europe. Through its subsidiaries, the fund is active in Romania, Hungary, and since January 2005, also in the Czech Republic. The company is considering further expansion of the fund in Bulgaria, Serbia, and Poland.