A new developer will take part in the development of Prague’s Karlín. Real Estate Karlin Group (REKG) sold part of its River Gardens development on Rohanské nábřeží to Premium Red, a real estate developer belonging to Volksbank group.
“The project in question is River Gardens – East with 25,000 square meters of above-ground office space,” said REKG partner Milorad Miškovič. He refused to disclose the price of the transaction. He said REKG would retain the construction of flats and the entire River Gardens – West project. “It is a development of about 108,000 square meters,” said Miškovič.
But it is not clear when the construction works will begin. In February, REKG said the construction would start at the end of this year. But the company, and this is similar for most developers these days, is still seeking tenants for the offices and waiting for a bank loan. “If we succeed we will launch construction of 17,000 square meters of office space and some 170 flats,” said Miškovič. The most optimistic scenario suggests this could happen in mid-2010. River Gardens should be a continuation of the River Diamond high-end housing complex consisting of 230 flats most of which got sold after the completion in 2007.
Miškovič said REKG is planning to start construction of the office building Keystone on the corner of Pobřežní and Šaldova before the end of the year as well as to move on with the construction of the Corso II administrative centre designed by Catalonian architect Ricardo Bofill.
The company wanted to start both projects in the spring. At the turn of the year, REKG sold the Corso IIa building, whose construction was completed in autumn 2008, to the Irish investment firm Duke House Asset Managers.
At the end of spring, the developer completed the Cornloft Šaldova residential complex also located in Karlín. In response to a low demand from flat buyers, the company launched a marketing strategy offering potential customers a possibility to lease a flat for three years and only then decide about the purchase.
The REKG group is rebranding and planning to shorten its name to Karlin Group.
