European Property Group

Location:

Czech Republic

Project number:

6372

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

30 Nov 1999

Status:

Complete

PSD disclosed:

16 Nov 1999

Project Description

The project will involve the expansion of the portfolio of a key developer in the Prague property market via acquisitions and developments of office, retail and mixed development commercial property projects.

The main project objective is to provide equity finance to support the expansion of the property portfolio of EPG in and around Prague. The transaction will encourage the development of a secondary property market through planned IPO and through acquisitions of completed properties.

Transition Impact

The transaction will facilitate know-how and technology transfer to the local development and property management sectors, which will stimulate greater competition in the property sector. The project will help in upgrading the skills of local subcontractors to enable them to produce construction works to international standards.

The Client

European Property Group (EPG) will be the holding company for all the companies affiliated with the European Property Development (EPD). EPD and its affiliates have been active in the development of commercial property in Prague since 1990. EPD is today one of the main developers in the Prague property market and the only large independent developer. EPD is planning a capital increase through EPG in order to provide the necessary equity to pursue its expansion strategy and to streamline its existing business.

For more details please refer to www.epgroup.cz

EBRD Finance

CHF 55 million (EUR 34 million) equity investment resulting in 23.7 per cent ownership of the company upon full subscription.

Project Cost

CHF110 million (EUR 68 million).

Environmental Impact

The project was screened B/0, requiring an environmental analysis of the impacts associated with the construction, equipment and operation of the commercial property. The analysis highlighted the following issues:

  • An Environmental Impact Assessment (EIA) has been undertaken by independent consultants, Atelier der Umweltmodelle (ATEM), in accordance with legal requirements. No negative issues were identified.
  • Construction will be undertaken in accordance with Czech and EU worker health and safety legal requirements and standards.
  • Environmental investigations, including soil and groundwater testing, will be undertaken at all sites by specialist environmental consultants.
  • The development will comply with all local fire, safety and emergency procedures. Sprinklers will be installed throughout according to authorities’ requirements.
  • Energy conservation measures will form a major part of the project.
  • No environmentally damaging materials or substances (asbestos, formaldehyde, oil-cooled transformers, etc.) will be used in the construction.
  • Increased traffic to the city centre is not expected to create any problems. The results are expected to lead to much more organised and functional traffic management.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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