Brno opposition ANO will support the purchase of shares in the Technology Park

Brno - The ANO movement, which is the largest opposition club in the Brno city council, will support the plan during Tuesday's meeting for the city to purchase half of the shares of Technological Park from the private firm P&O. However, it sets two conditions. One is the commitment that during the current electoral period the city, which would become the sole owner of Technological Park, will not sell off the company's assets. The second condition is to maintain the price at which the region was supposed to buy the shares, namely 21.5 million euros (approximately 550 million CZK), former ANO mayor Petr Vokřál said at a press conference today.

Technological Park has been in existence for over 20 years and rents out 60,000 m² of office space to innovative companies and research institutions. There is another 60,000 m² available for office construction, and another 60,000 m² is designated for housing according to the zoning plan. With this purchase, Brno would become the sole owner, as it, together with the University of Technology, already owns half of the shares. The South Moravian Region has been negotiating the buyout of shares from the private firm for over a year, but two weeks ago, regional representatives ultimately rejected the purchase.

"The best solution would be for the region to buy it. The purchase by the city is the second-best solution. Therefore, we will support the plan with the two mentioned conditions," Vokřál said. The conditions are also a result of the fact that, according to Vokřál, some members of the city leadership have changed their views on the purchase of half the shares in the last six months, specifically mentioning Mayor Markéta Vaňková (ODS).

According to the former mayor, given the power dynamics in the Brno city council, the purchase plan should succeed. "The Social Democrats will probably maintain a negative stance, we'll see. I'm curious about how the mayor will vote, and it's also a question of how the Christian Democrats will respond," he said. During regional voting, they abstained. According to responses from political club representatives to ČTK, the Christian Democrats should be in favor, the Pirates also, and the Social Democrats against. Vaňková is expected to support the purchase.

According to Vokřál, it is important for the public sector to maintain and strengthen ownership to preserve the role of Technological Park. "I can imagine that a private developer could pull A-class clients elsewhere and place B-class clients here. Red Hat wanted to build a second building, but only if city control remains, the same goes for a German investor who wanted to come here under this condition. The city and the region also do not have the land and offices to offer a place for companies emanating from the South Moravian Innovation Center that want to stay in this research-connected area with large firms. Moreover, in the next programming period, we will be able to tap into large funds to support research, science, and innovation," Vokřál said.

If the city approves the purchase plan on Tuesday, the actual purchase should be approved on November 5.

The developer claims that Technological Park in Brno is overpriced

Brno – The development company Trikaya just a few days before the vote of the Brno councilors on the purchase of half the shares of Technological Park stated that the city's offer is significantly higher than the actual value of the shares. This was stated to ČTK by the chairman of Trikaya's board, Dalibor Lamka. Trikaya has long been interested in purchasing a stake. Its current assertion is based on the statement of the analyst of Cyrrus, Petr Pelc, who concluded in analyzing the value of Technological Park that it amounts to 450 million CZK for half the shares. Pelc told this to ČTK. Meanwhile, the city is offering, similar to the South Moravian Region a few days ago, 21.5 million euros (approximately 550 million CZK). The City Hall's response to ČTK is being verified.

Technological Park rents out offices covering an area of 60,000 m² to innovative companies and research institutions, and has existed for over 20 years. The company also has another 60,000 m² available for office construction, and another 60,000 m² is designated for housing according to the zoning plan. By making the purchase, Brno would become the sole owner, as it already owns half of the shares together with the University of Technology.

The city has received an offer to buy shares from P&O, which is no longer interested in the shares. It had offered the same price to the region, whose council ultimately rejected the long-prepared purchase last week. Two years ago, Trikaya offered 470 million CZK for the shares. P&O originally demanded over 600 million CZK.

Brno councilors will vote on the purchase at Tuesday’s meeting. Councilors recommended the purchase after it was added as an extraordinary item to the agenda this week on Tuesday. Proponents of the public sector purchase, whether they were regional or city representatives, argue that the city or the region can influence what happens in the area in northern Brno and provide support to companies that funnel from the South Moravian Innovation Center. Opponents argue that the city and the region should not interfere in the real estate business, which belongs to the private sector. Moreover, they point to financial risks stemming from the necessity to take out a loan. Like Pelc, they also question the assumption of stable profitability.

"In 2017, the company's profit was 40 million CZK, the report for last year is missing, but profitability is declining, costs are rising. Moreover, there is a risk that companies will leave the buildings and they will be half-empty, which a private developer can better manage," Pelc thinks.

The offer from P&O to the city is limited until November 5. If the city does not respond positively, it will offer the shares to a commercial interested party.