PPF Real Estate plans to build Prague’s second largest park at Trojmezí

PPF Real Estate,together with other land owners,plans to build the second-largest public park in Prague over the next seven years. . Called the “Trojmezí Public Park” (Veřejný park Trojmezí)and taking up approximately 150 hectares of land, the park will be located on the border of the municipal districts of Prague 10, Prague 11 and Prague 15, loosely connected to the existing Hostivař natural park. The Trojmezí Public Park project includes a new sports facility, a gardencentreand free rest areas as well as the development of low-rise villa houses and principal civic amenities for the citizens of the surrounding municipal districts.

PPF Real Estate owns approximately 45 hectares of land in the Trojmezí area through its subsidiaries. The company plans to include its own land in the development and, together with other land owners in the area, develop a new project covering a total of 150 hectares which would include a public park of 86 hectares. The remaining roughly 70 hectares would be used for a family-oriented residential development and basic civic amenities, which could contribute to the financing of Prague’s second largest park.

The entireTrojmezíarea has been the topic of heated discussions for more than six years. Most notably, a dispute as to the future use of the land arose between civic associations and the Prague Municipal Authority two years ago.

PPF Real Estate has now come up with an alternative proposal. “The City only owns a part of the land in the Trojmezí area. Civic associations do not own any land. As such, both parties have hitherto been involved in a controversy over the use of property that does not belong to them and to which they have no ownership titles. A comprehensive agreement on future development with the actual ownersis the only viable solution for Trojmezí,” said Martin Tucek, PPF Real Estate’s investment director in charge of the project.

The private landowners of the properties over which the civic associations and the City have been quarrelling have offered both parties the land for sale. However, neither the civic associations nor the City has responded to the offer.

The plan for developing the Trojmezí Public Park is also intended to address the issue of antisocial behaviour in the area.At present, it is rather desolate withseveral wasteland areas. Many small owners lack the funds to maintain the properties. All this gives rise to an environment that attracts antisocial citizens and drug addicts.

PPF Real Estate’s projectproposes to settle the ownership of the privately-owned land. A part of the land would then be transferred to the City’s ownership free of charge, on the condition that it will be used for the development of the second largest park in Prague. “The purchase of land from the other owners is a major cost item. A portion of this amount would be covered by the residentialhousingandthe development of basic civic amenities,”said Martin Tucek. For example, PPF Real Estate plans to build a new kindergarten and primary school with sports facilities in the area. The plans also include a new garden centre and a natural heritage and relaxation zone along the Botič stream.

The collaboration on the part of the other land owners and stakeholders as outlined aboveis a prerequisite for PPF Real Estate to be involved in the project. PPF Real Estate wants to address the development of the entire area, rather than just developingthe property it owns. “We want to avoid the previous practice of piecing land development in Prague into many smaller parts where various types of development invariably took place without any overall concept or idea. Our goal is to address the area as a whole and connect the new public park with the Hostivař natural park,” said Martin Tucek.

PPF Real Estate is currently discussing the project with all stakeholders, including the Prague Municipal Authority, the municipal districts, other land owners and the representatives of civic associations. The company intends to find agreement on the aforementioned compromise, a solution which it is convinced is very beneficial for everyone involved. At the same time, the project must be viable economically. Its existence depends on the economic and administrative collaboration between all involved parties – land owners, civic associations, the Prague Municipal Authority and the municipal districts.

Key parameters of the Trojmezí Public Park project:

• Prague’s second-largest public park (86 hectares)
• 9.5 kilometres of new bicycle trails
• Open connection to the neighbouring Hostivař park
• A new primary school and kindergarten for children from the surrounding municipal districts
• Residential development in harmony with the existing development and the planned park
• The connection of the TrojmezíPublic Park with the Hostivař natural park will give rise to Prague’s largest area suitable for sports, relaxation and leisure.