Veletrhy Brno want a higher capital due to the new pavilion

Brno - The new pavilion at the exhibition center in Brno will be financed approximately one-quarter by the city and the company Messe Düsseldorf, co-owners of the Brno Trade Fairs. The building will cost about 800 million crowns. The shareholders will contribute their share of the construction to the equity, increasing it by 175 million to 1.085 billion crowns. ČTK confirmed this today by the Deputy Director of the Brno Trade Fairs, Egbert Zündorf. Construction is set to begin next year. The new exhibition space is said to be noticeably lacking, especially during large events.
    The Brno Trade Fairs are the leader in the domestic trade fair market. The company controls about two-thirds of it and generates around 1.7 billion crowns annually. Each year, it offers more than 40 events, many of which are the largest in Central Europe.
    The exhibition center, covering an area of 667,000 square meters, has 16 pavilions. In recent years, several have been added, such as E, F, or V. However, for some fairs, such as the engineering fair, this is still insufficient. Therefore, near the round pavilion Z, a new hall P will be built, which should satisfy exhibitors' demand for modern spaces.
    So far, the Brno Trade Fairs have constructed new pavilions using their own resources or through bank loans. For example, the company spent 440 million crowns on pavilion V and 330 million crowns on the adjacent hall F. "From the company's perspective, in the case of realizing additional investments, it is necessary for the partners to be financially involved," believes Zündorf.
    The Brno City Council has already promised its share in the capital increase, owning about 34 percent of the company. The representatives decided today to allocate nearly 62 million crowns. The majority shareholder, Messe Düsseldorf, is expected to contribute over 100 million crowns. The remainder will be up to small shareholders, who hold about six percent. If they do not agree to the increase, their shares may be purchased by current owners.