PPF and Milan Janků form one of the largest real estate holdings companies in Central Europe
The PPF Group will contribute its real estate portfolio and will become the majority shareholder in the new company. Milan Janků will hold a minority stake in the holding company.
The new company will comprise the following companies and projects: PPF’s real estate investment portfolio, PPF’s development projects in the Czech Republic, Russia, Romania, and China; the company Domus Eventis; a stake in the PSJ construction group and the retail chain operating under franchise of the Carrefour brand in Slovakia. A minority stake in ECM GROUP N.V. will also be transferred to the joint holding company.
A key competitive advantage of the new holding company will be its integrated approach to the way in which development projects are undertaken. This will be achieved by concentrating all the different stages of a transaction under one roof, from land acquisition through to construction and occupation. The partners have agreed that early stage investment in the joint venture will focus on the completion of those projects which are currently underway. In addition, they will consider acquiring certain distressed real estate assets in the market on a case by case basis. In anticipation of a market revival, the new holding company will commence preparation of the relevant legal planning documentation required to develop the land that it currently possesses.
“In my opinion, this strategic alliance sends a clear signal to both investors and the property market that a strong and stable international group - one which is poised for a promisingly dynamic and sustainable growth regardless of the current global recession, is entering the market,” said Milan Janků.
“This real estate business unison enriches PPF Group with the knowledge and expertise of Milan Janků, who will assume management of the holding company. We are focusing on creating a company that combines its assets, its comprehensive approach, managerial backing, financial discipline, and transparency for the sole purpose of becoming one of the leading property players in Central and Eastern Europe, Russia and China. The company that we are creating combines all of these traits.” said Jiří Šmejc, a shareholder of the PPF Group.
The creation of the joint venture will be formally completed in three months. Its establishment will not have any bearing on ECM REAL ESTATE INVESTMENTS A.G. or its activities and assets; nor will it have any influence on the public tradability of this company’s shares, which are listed on the Prague Stock Exchange. ECM GROUP N.V., as the majority shareholder of ECM REAL ESTATE INVESTMENTS A.G., is not planning to withdraw them from this public market. Through his majority stake in ECM GROUP N.V., businessman Milan Janků will retain control over ECM REAL ESTATE INVESTMENTS A.G.