Czech energy producer ČEZ sold a portfolio of more than 700 flats in Prague’s Písnice panelak neighborhood near the planned metro D station to Kennial, a member of Arca Capital, owned by Slovak entrepreneur Pavol Krúpa. Krúpa won a tender with a bid of CZK 1.305bn, representing a price of CZK 24,000/sqm. That is approximately half the current market price, which has rocketed to CZK 50,000/sqm over the past few months for flats in prefab neighborhoods. Krúpa immediately announced he would re-sell the units to their current long-term tenants, whom ČEZ should have offered the flats to first. Prague criticized the deal and says it offered the Písnice municipality an interest-free loan, so that it could buy the flats. The municipality, however, argues that Prague’s politicians (Social Democrats and ANO) only made a gesture and are not in fact willing to help.
