Three investors are interested in the construction of a residential building in Ostrava

Ostrava - Three private investors want to collaborate with Ostrava on the construction of the residential building Nové Lauby in the city center. They responded to a call that the city addressed to ten interested parties registered in the first round. The companies are to submit their price offers by November 2. The mayor Tomáš Macura (ANO) told journalists today.

According to him, the city was primarily motivated to collaborate with a private investor by the desire to share the costs of the construction of the building. The city also expects that this could lead to faster construction. The mayor stated that he was surprised by such a high level of interest from investors. "I was afraid that the numbers would be worse, whether anyone would pass through that qualification, because the conditions were really tough; we wanted a large company with experience in building large apartment complexes," noted Macura.

The offers from the investors will be assessed by a commission, and the city would like to conclude the contract by the end of this year. The construction will include new buildings with apartments, underground parking, and commercial spaces.

The city will sell the interested party the entire land designated for development, including the relevant documentation for construction and the building permit, and will conclude a future contract for the repurchase of residential units and a share in the underground garage. Subsequently, the investor will construct the entire building. The city of Ostrava will then purchase 31 apartments, 119 parking spaces, and 17 basement compartments from him. The investor will retain the commercial space and 54 apartments in three entrances, including related parking spaces and basement compartments.

"The deciding criterion will already be price, because there will be no difference in quality since the investor is required to follow our provided project documentation. The price will actually be the difference between what we sell to that investor... and on the other side is actually the price for the given number of residential units, parking spaces, and the corresponding number of basement compartments that the city will repurchase," added Macura. According to him, the model is advantageous for both parties, as the construction will be secured by a private investor and the city will have control over what will be in the protected heritage zone.

Construction is expected to start at the beginning of next year and should be completed in 2023. The new building, with five above-ground floors in the shape of a closed irregular trapezoid, will consist of five blocks containing 85 residential units and underground parking with 173 parking spaces.