In the Ostrava Karolina, construction will begin no earlier than 2014

Ostrava - Further construction in Nová Karolina in the center of Ostrava will begin no earlier than 2014. The second phase of the development of the area of the former coke plant again includes office spaces and apartments. The costs are expected to be around two billion crowns, said Luboš Kočí, director of Multi Development ČR, the company that won the competition for the development of the former industrial area.
     The entire Nová Karolina was originally planned to be developed in four phases by 2016. However, due to the economic crisis, the first phase was delayed, which included not only apartments and offices but also a commercial and entertainment complex that opened a year ago. The developer ultimately agreed with the city to postpone the schedule of the individual phases by two years, meaning the second phase should have been completed by 2014. However, according to Kočí, Multi Development ultimately agreed with the city on another extension of the deadline, and did not receive any sanctions from the city. "Currently, the second phase is in the design stage for the zoning decision, which should be issued this July or August," Kočí stated.
     In the second phase, there are plans for two blocks for administration with a total area of about 20,000 square meters and three residential blocks with approximately 200 apartments. "This year will be spent negotiating with potential interested parties, whether directly about the spaces or about cooperation," Kočí stated, who did not rule out that the company would proceed in a similar way for the second phase of construction as it did in the first phase, where it partnered with other partners for the construction of some buildings. The financing model is also expected to be repeated. The developer financed the first phase with loans from several banks. However, according to Kočí, it is currently significantly more difficult to negotiate this financing.
     The construction of the first phase, which was gradually completed throughout last year, cost about seven billion crowns. The Forum Nová Karolina commercial and entertainment center, with more than two hundred retail units, is reportedly visited by 600,000 to 900,000 people monthly. It employs approximately a thousand people. Of the more than 200 apartments built in the first phase, about 180 have been put up for sale so far, with about a hundred sold according to Kočí. Kočí added that less than half of the approximately 22,000 square meters of office space has been leased so far. "Of course, expectations were probably higher, but negotiations are progressing," Kočí stated. According to him, part of the building should be occupied by Česká spořitelna later this year.