DPP: The joint venture in Holešovice is to be a model for others

Prague - The Prague Public Transit Company (DPP) stands by its agreement with the Nové Holešovice Development company regarding the renovation of the C metro station Nádraží Holešovice and the development of its surroundings. According to the company’s management, a similar model of cooperation should also work elsewhere, with the station Roztyly being the closest to an agreement. This was stated by DPP Director Petr Witowski to journalists today. The agreement has been challenged by the CPI Property Group mainly because the company did not announce a public tender. According to the company’s opinion, this is not necessary in similar cases; however, the contract is still under review, and the company is waiting for legal opinions before signing.

The agreement anticipates the establishment of a joint venture involving a private entity and the DPP, which will be responsible for the revitalization of the station as well as the construction of offices and apartments in the vicinity. The Nové Holešovice Development company is owned by the development firms Karlín Group and Ungelt Group along with other investors.

Witowski stated that the advantages of cooperating with a private entity include savings on the renovation of the station and the appreciation of the land that the DPP will contribute to the venture. "Another added value is that we have an equity stake in the joint venture, and I expect that DPP will have a significant income from this in the future," he added.

The CPI Property Group submitted a proposal to the Supreme State Prosecutor’s Office to investigate the agreement, which it claims was negotiated without a transparent selection process and is accompanied by inconsistencies. However, according to Witowski, it would not make sense to establish the venture with other companies considering that only the Karlín Group owns land in the area where it plans to build. Therefore, even a selection process would be pointless.

The director added that according to the company’s legal analysis, a selection procedure was also not necessary. However, based on a request from the city council for additional verification of the contract, the DPP has commissioned another analysis, which should be completed by the end of the week. After that, an opposing review will be created, and if the company is satisfied with the conclusions, the agreement could be signed within weeks, according to Witowski. "We are deeply convinced that there are no irregularities occurring here, as someone is attempting to present," summarized the head of the company.

President of Karlín Group Serge Borenstein stated that in the case of signing the agreement, an international architectural competition for the design of the metro station and its surroundings will be immediately announced in cooperation with the city. "I believe that it could theoretically start construction within a horizon of three years," added the company’s CEO Jan Ludvík. The city is currently preparing a detailed study of the entire brownfield area between the stations Nádraží Holešovice and Vltavská, which is necessary for the planned change to the zoning plan. After this, it will be possible to lift the construction freeze in the area.

If the DPP concludes the agreement, a similar model of cooperation should also be used for the development of other metro stations, as the company’s management considers it to be the best way to enhance assets, which is common abroad as well. Witowski stated that among other projects, the station Roztyly is closest to concluding an agreement, where the company is negotiating with Passer Invest. "We are discussing very similar, if not the same principles, as those in Holešovice," he stated, adding that the agreement could be concluded in the first half of next year.