CzechInvest: Investors currently have little interest in brownfields

Former Social Club, Brno-Zábrdovice

Prague - According to the CzechInvest agency, investors currently have only a small interest in brownfields, which are unused properties. CzechInvest estimated that there are now about 10,000 abandoned factories, buildings, or neglected agricultural structures in the Czech Republic, many of which could be reused. Therefore, the agency will launch a series of seminars in September to present investment opportunities in brownfields in all regional cities.
    CzechInvest's appointed general director, Alexandra Rudyšarová, informed ČTK today that only five to six percent of investors preparing new businesses are considering the regeneration of brownfields. According to Rudyšarová, brownfields have enormous value. "They have established infrastructure, often located in very interesting areas, and people are used to commuting to work there. Moreover, it is possible to obtain funding for their renewal from European and national funds," Rudyšarová pointed out.
    A brownfield is a site or object that is not being effectively utilized, is neglected, and in many cases also contaminated. The property cannot be used without revitalization, which often involves costs amounting to tens or hundreds of millions of crowns.
    Examples of brownfields include the former plant of the bankrupt company Milo near the historic center of Olomouc, which is likely to be transformed into a multifunctional complex that will include shops, an entertainment center, apartments, and offices. The investment will require about ten billion crowns and is expected to be completed by 2015. The investor of the development project will be a joint venture of the ING Real Estate Development holding and Sekyra Group Real Estate.
    At the beginning of this year, CzechInvest launched an online database of brownfields, which, according to the agency's management, should attract new investments into these unused properties. The list contains detailed information, including photo documentation of unused industrial sites. The database at www.brownfieldy.cz will be gradually expanded by CzechInvest. "The database currently contains almost three hundred records," noted CzechInvest spokesperson Lucie Kocourková.
    In recent years, the state has financially supported the regeneration of unused industrial, agricultural, military, or mining sites. With state financial support, 2,959 hectares of industrial zones have been created in the Czech Republic since 1998, including 530 hectares of regenerated brownfields. For the years 2007 to 2013, the Czech Republic has about 14 billion crowns available in EU funds for business property projects and the remediation of old ecological burdens.