Kennial, part of the Arca Capital group, has decided not buy a portfolio of 700 flats from ČEZ. The announcement comes after tenants filed a lawsuit, pointing to ownership determination and legal flaws in the tender. Kennial won the tender the state-run energy supplier launched in February to sell panel flats in Prague’s Písnice neighborhood with a bid of CZK 1.3bn. The neighborhood, built between 1987 and 1990, is located near a planned Metro D station. Kennial spokeswoman Barbora Hanáková told Czech TV that following a thorough analysis the buyer found the tenants’ claim to the flats justified. Tenants argue that ČEZ’s takeover of the flats in the 1990s was not transparent. Kennial also represents tenants in flats owned by OKD, which were sold in a similar way, and Hanáková says the company feels there is conflict of interest.
