České dráhy Has Completed the Sale of Remaining Plots of Land around the Smíchov Railway Station

22. 9. 2023 - 12:10

České dráhy and the Sekyra Group company have signed an agreement on the purchase of the remaining plots of land around the Smíchov railway station, on which the new Prague district of Smíchov City is to be built up. The new agreement includes a modification of the terms and conditions of the purchase, which means a significant increase in the price for these plots of land compared to the original agreement.

“The previous contract gave the Sekyra Group the right to purchase these plots of land at the price ascertained in the expert opinions at that time. However, during our business negotiations, we have negotiated more favourable terms and conditions for České dráhy and we will receive almost CZK 300 million more for the sale of the remaining plots of land,” says Michal Krapinec, Chairman of the Board of Directors and Director General of České dráhy, and adds: “We had a new valuation of the plots of land prepared and we have invited the purchaser to negotiate about an increase in the price. I am glad that the developer agreed to change the original price arrangements and that we together have reached a mutually acceptable agreement.”

The project, which deals with the future of the former ČD railway plots of land in Smíchov, was created already in 2004. The Sekyra Group company won the tender procedure for the future purchaser of the plots of land with the most advantageous price offer. The first stage of the project was purchased by the developer under the Framework Agreement entered into in 2019. The developer is implementing a project here, which, once completed, will provide almost 400,000 square metres of residential, administrative, commercial and public premises. The Smíchov City is the largest development project in the modern history of Prague, and it is the most extensive urbanisation of the central part of the metropolis since the arising of Vinohrady.

“We are very pleased to be able, thanks to this development, to continue the construction of the project which is significantly changing the current face of Prague,” said Leoš Anderle, Chief Executive Officer of the Sekyra Group. The agreement was approved by the Board of Directors, the Supervisory Board as well as by the Steering Committee of ČD. The Sekyra Group will pay a total of CZK 2.4 billion for the Smíchov plots of land. “The purchase price is an intersection of the values which we arrived at on the basis of the expert opinions prepared by prestigious consulting firms.” The valuations for the Sekyra Group were drawn up by such companies as PricewaterhouseCoopers and Deloitte, while the author of the valuation for České dráhy is KPMG.

The new Smíchov City district is expected to employ and house more than 12,000 people. The first of them should move into the new buildings already this year. The Smíchov City consists of two parts, namely the northern part and the southern part. They are being built gradually in several stages. Both the parts will be connected by a pedestrian boulevard named after Madeleine Albright, a well-known American politician of the Czech origin, and it is to serve not only as a communication axis, but also as a meeting place and a place for civic activities. The boulevard will be lined with greenery. In total, the Smíchov City project envisages more than two hectares of green areas.

The northern part will be dominated by residential development. In the first stage, blocks of flats with a total number of 405 flats are already under construction, supplemented by one office building. There will be also a number of services, restaurants and shops, including a supermarket. The northern part will include a park of approximately 14,000 square metres, which is comparable in size to the Wallenstein Garden. In the southern part of the almost one-kilometre-long pedestrian boulevard, an entire commercial district will be constructed, including the headquarters for Česká spořitelna. The Smíchov railway station will undergo major modernisation activities as well.

Author: Tiskové oddělení Českých drah

Release date: 22. 9. 2023

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