Investment company Baltic Asset Management will convert the Vítkov hotel in Prague’s Žižkov district into a modern coliving project called Youston. It will offer about 100 units to tenants at the beginning of 2024. This coliving project represents a significant entry of Baltic Asset Management into the Czech Republic and Central Europe.
“Our market analyses show that there is a shortage of supply of quality coliving space in the Czech Republic and the entire Central European region,” says Ugnius Latvys, CEO of Baltic Asset Management. He points out that the location in the wider city centre is one of the key values of successful coliving projects.
Hotel Vítkov in Prague’s Žižkov district was renovated in 2007 and operated as a three-star hotel before the pandemic – but has not reopened since. The upcoming Youston coliving project will offer individual rooms ranging in size from 15 to 48 sqm, each with its own kitchen and bathroom. The project will also include a range of communal areas including a dining room, cinema, sauna, laundry, gym and spaces for education, work and leisure.
“Our goal is to create more coliving projects in the region, so we are looking for both investment partners and property owners who are open to quality redevelopment projects. Without the help of partners, even acquiring a property and successfully launching a project in the Czech Republic would not be possible. Wherever we intend to grow, we try to work with local partners who know the local market. In the acquisition of the Vítkov Hotel we were supported by Carlo Gradl, our business partner, who is helping us to expand our activities in Prague,” adds Ugnius Latvys.
Baltic Asset Management is looking to expand its real estate portfolio and offer partnership opportunities to other investors not only in the Czech Republic, but also in Poland, Latvia and Scandinavian countries. According to Ugnius Latvys, the company plans to invest more than EUR 112 million in the Czech Republic, Poland and Latvia and expand its portfolio with more than 1,200 coliving and traditional rental units. The company has already signed joint venture agreements with partners in these countries. In addition, it has formed teams with local partners in each country that include brokers, architects and lawyers to ensure the smooth running of the processes.
The COVID-19 pandemic has been a major challenge for hotels and even office operators. “However, the crisis has created new opportunities for redevelopment projects. Hotels closed and remote working drained staff from office buildings – a range of properties ideal for new asset types emerged. In our view, new projects can satisfy investors’ need for portfolio diversification. Therefore, we continue to actively seek out abandoned or loss-making hotels that have barely survived quarantines and are no longer able to reach pre-pandemic occupancy levels. Such properties are very attractive for conversion to other types of housing,” says the CEO Ugnius Latvys of Baltic Asset Management.
“Baltic Asset Management’s focus on coliving projects reflects the growing trend of community-oriented housing. By converting underused properties into modern living spaces, we are not only providing much needed housing options, but also contributing to the development of cities that are better places to live. Our community-oriented housing projects, such as Youston and Chapters, prioritise shared spaces and facilitate social interaction, promoting belonging and connecting residents. Such projects can have a transformative impact on a neighbourhood – revitalising underused spaces and contributing to the creation of more vibrant and sustainable urban communities,” adds Ugnius Latvys.
The investor also cites speed as an important advantage of such a conversion. Projects are completed and brought to market twice as fast as new construction.
Baltic Asset Management has nearly 600 coliving and traditional rental units in Vilnius in the Chapters and Youston chains with 97% occupancy. The company has implemented a similar community housing project to the Prague one under the Chapters name – this project replaced a closed hotel in the centre of Vilnius and was well received by tenants and the surrounding area.
Baltic Asset Management is a real estate investment and development company registered in Vilnius, Lithuania, which specialises in the redevelopment of urban real estate. It converts former industrial, office and public buildings into residential properties for millennials, Generation Y and young professionals.
