Tag Archives: Czechia

Lessons in corruption

A fine example of how to fix a tender is reported on in today’s Hospodarske noviny. It goes back to the now disgraced Social Democratic power broker David Rath, the governor of the Central Bohemian region, who became involved in the reconstruction of an old castle not far from the Prague airport.

It had already come out that some bright sparks realized that a tender for the work had come up with a price that failed to, shall we say, realize its full potential. So the tender was scrapped and a new one was held.

Lo and behold, the new project came out tens of millions of crowns more expensive (but who cares, since the EU was going to foot a lot of the bill, right). Turns out, writes HN, that the winning company, Konstruktiva Branko, actually prepared the documentation for all the bids of all the shortlisted companies. As in, they all agreed to take a back seat in order to provide cover for the winner. Very professionally done, all in all. A real textbook example that criminals everywhere can learn from. Except that someone in the whole complicated web of relationships had been talking to the police about it for months.

The real wonder of it all is that no one in the police team investigating the plot tipped off any of the actors, making it possible for Rath to be nabbed, red-handed, with CZK 7m in cash, in his car (he was also carrying a gun).

75k sqm of new industrial space in Czech Republic

The Czech Industrial Research Forum is reporting that the total stock of modern warehouse space rose 75,600 sqm in Q1 2012 to 3.9 million sqm. It adds that another 132,500 sqm is under construction, suggesting that the market isn’t quite as dead as people have been making out. Over the same period, gross take-up was 130,700 sqm, a 30% drop from Q4 2011. Net take-up, the number developers really worry about fell 43% to just 89,000 sqm. Vacancy rose for the first time in two years to 7.3% from 6.7% in Q4 2011.

Curious times at ECM

Milan Janku of the failed developer ECM has said he wants to sell 8 projects and complete five others. Those are worthy goals for most developers, but a bit difficult to pull off for companies that declare themselves insolvent.

It’s also a bit eyebrow-raising that the company’s share price jumped 20 percent yesterday. Raised the eyebrows of Prague’s stock exchange enough for it to halt trading the company’s securities for a bit. Somebody knows something we don’t (for now).

Czech agricultural land just got more expensive

Happy 2011!
Anyone still planning to buy agricultural land in order to build on it will really wish they’d gotten around to it back in 2010, as the price for getting an exemption from the  agricultural fund just went up. That’s the word from the legal firm Wilson & Partners.

The Amendment was published in the Collection of Acts (Sbírka zákonů) on 28 December 2010 andbecame effective as of 1 January 2011. It will have substantial impact on all the upcomingprojects as in most cases the Payment shall be increased several fold.

Here’s the original. It might just be worth reading, seeing as some land could jump 9x in price.

Shoppers storm Chomutovka

There’s really nothing like organizing a good stampede to kick things off at a new mall. If the consumers in Chomutov are feeling the economic pain of recession, you wouldn’t know it from the way they charged into the new mall. By the looks of things, the escalators may have been an attraction in themselves. The local paper’s website carries the video.

Tesco anchors new Chomutov center

Spectrum stores is opening a 10,000 sqm shopping center tomorow (Sept. 30) in Chomutov, 9,000 sqm of which has been leased. A Tesco supermarket sits on the ground floor, with other tenants including CCC shoes, Dr. Max, Orsay, Takko, Euronics and Apollo Sport.

Cushman & Wakefield, which has been in charge of finding clients, points out it’s one of just four centers which will open this year in the Czech Republic. Continue reading

Sekyra sell Nestle building to CPI

Sekyra has sold the Nestle building in Modrany, Prague 4, to the investor CPI for CZK 650m. Nestle’s been in the 15,000 sqm building Sekrya built since  2006. Founder Ludek Sekyra calls the transaction proof that the investment market is waking up. Some might say vendors are waking up as well.