The Brno diocese is investing in real estate, building, for example, manufacturing and storage halls

Brno – The Brno Diocese managed a budget of almost 2.5 billion crowns in 2023. To prepare for the gradual decline of funding from the state, it is making investments in real estate. Through its companies, it operates the department store Velký Špalíček in the center of Brno and is building manufacturing and storage halls in Mikulov in the Břeclav region and at the intersection of highways D1 and D2. This was stated by representatives of the diocese to reporters today.

The amount of 2.467 billion represents the total turnover of the diocese, including charity, schools, and parishes. The economy is slightly positive. In the last year, the diocese received 93 million crowns from the state for its operating budget.

After 2030, state contributions for activities will cease, and in 2043, the payments for property not returned in church restitution will also end. Until then, the diocese must prepare for independent financial management. It is learning to do business, which both clergy and believers must get used to.

"I'm not interested in making the diocese rich, but functional," stated Bishop Pavel Konzbul. The Brno Diocese cannot rely on forests for its finances, having received fewer in restitution than other dioceses. Therefore, the diocese focuses on investments, stocks, bonds, and also real estate in its economic activities.

The first major venture in the real estate market was the Velký Špalíček, a department store from the turn of the millennium, which the church purchased from a private investor. Now, the diocesan company Urbanon is considering building retail capacities on church-owned land in the countryside, which could then be leased to chains.

In Jaselská Street in the center of Brno, Urbanon is preparing to build the Augustinian House. Its construction was complicated by a court intervention that annulled the legal force of one of the four building permits. Therefore, only securing work can currently continue, said Petr Prokš, the chairman of the company's board. Another project is the complete transformation of the former Ursuline monastery and its connection to Novobranská Street and Římské náměstí.

"Our goal is to ethically invest funds from compensations. We want to do this through diversification; we have three directions," described Prokš. He mentioned industrial, residential, and retail projects.

The church also expects to continue receiving income from believers, donors, and sponsors in the future. "However, the church has never lived solely from donations, but also from economic activities," emphasized General Vicar Pavel Kafka. For the repair of monuments, as well as the operation of schools and social services, the church plans to continue to utilize grants from local governments and the state, or from other sources.

The diocese has long been striving to invest in and expand offerings in educational institutions. Currently, it is building new specialized classrooms at the Bishop's High School on Barvičova Street in Brno and will also expand the capacity of the local kindergarten. The planned costs exceed 100 million crowns.