The owner of Máje is preparing to sell it to a related fund for billions

Prague - The investment company Atris and its managed real estate fund Realita are planning to purchase the reconstructed department store Máj in Prague on Národní street, which opened to the public this year after a long renovation. The seller is the Amadeus Real Estate group, which invested around 4.5 billion crowns into the renovation. The price is thus likely to reach higher units of billions of crowns. Tomáš Jícha, Vice Chairman of the Board of Atris, told the Seznam Zprávy (SZ) portal that both Amadeus Real Estate and Atris have the same ultimate owners, namely brothers Václav and Martin Klán.

"We are carefully examining Máj from all aspects now. If the checks are favorable, we will negotiate about the price. We believe that we can agree with the seller on a price that will provide sufficient returns for investors and will also be satisfactory for the seller," said Jícha. A similar operation was carried out this year by Amadeus and the fund managed by Atris with the Palác Bristol project on Dlouhá street in Prague 1, the website reports.

"This is not a conflict of interest, but rather the use of synergies. Otherwise, we would be working against ourselves. The interest of Atris investment company's shareholders is the long-term and successful operation of the Realita fund, which would not make much sense in the case of an 'unfair' price for Máj," Martin Klán told SZ Byznys. Jícha pointed out that the risk of a development project, such as the renovation of Máj, is too great for a fund aimed at small investors. "Therefore, the development took place elsewhere. However, the fund will now be able to benefit from the results. I believe this is the right model and approach," he said.

According to Jícha, everything is well regulated and covered by other regulations. "We will have two independent expert appraisals, which will also be checked by commercial advisors. Everything will be evaluated by our risk manager, and the custodian also plays a role in the matter. In short, we treat it like any other property," he added.

The department store Máj in downtown Prague opened to the public on June 24 this year after about two years of renovation. With nine floors, Máj offers shops, restaurants, entertainment centers, and a rooftop viewing terrace. Before the opening, two several-meter-tall moving butterflies with a body resembling a Spitfire fighter jet by artist David Černý sparked controversy, which the owners had installed on the facade of the building.