UDI Group, an international developer of Czech origin, has bought a 1.5 square kilometre industrial complex in Brno-Husovice. It plans to build mainly flats there, but it needs a change in the zoning plan.
The site, which currently includes 28 buildings with various uses from offices to light manufacturing, is located on Svitavské nábřeží, across the river from the former Zbrojovka site, which the developer CPI Property Group is turning into a new urban district. The zoning plan currently allows offices, shops, light manufacturing and hotel-type accommodation to be built on the site. UDI plans to start with this as well.
“If an amendment is approved for the zoning plan on this site, which was initiated by the city some time ago, then it should be possible to build conventional housing on our property. However, at the moment we are working with hotel-type accommodation supplemented by services, retail and offices. We would put the built accommodation units into our upcoming real estate fund,” said Marcela Fialková, director of strategy at UDI Group. She added that the apartments would be rented out by the developer. The company expects to invest around CZK 3 billion in the project.
In the meantime, the group will continue to operate the complex, which is mostly occupied by tenants, and will temporarily rent out the vacant space. At the same time, it will start planning the redevelopment of the site, which is close to the centre of Brno. The construction should start within two years.
The group is currently working on 20 projects together with the latest Brno addition. Their current value is estimated at EUR 445 million, or about CZK 11.35 billion. In the coming years, UDI Group expects revenues from these projects to reach EUR 2.1 billion, or almost CZK 54 billion.
Source: UDI Group and CTK
