YIT expands its operations in the Czech Republic to the city of Brno
YIT Corporation Investor News 12 November 2024 at 1:00 p.m.
YIT expands its operations in the Czech Republic to the city of Brno
YIT continues to grow in line with its strategy in the CEE countries and is expanding its operations in the Czech Republic and establishes a joint venture with the Czech investor group RSJ Investments. The joint venture company buys a plot of land and starts its first project in the Židenice area, Brno. With a population of 400,000, the growing university city of Brno is the second largest city in the Czech Republic and is located about 200 kilometres southeast of Prague, midway between Prague and Bratislava. YIT and RSJ Investments each own 50% of the now established joint venture. The parties have agreed not to disclose the value of the transaction.
Located right next to the centre of Brno, the project is an area plot, in which approximately 750 apartments will be built. The area will be developed and constructed in seven different phases, three of which have already been granted building permits. The construction of the first apartment building is planned to start in spring 2025, and the last project in the area is expected to be completed by summer 2031. The estimated market value of the apartments is over EUR 200 million.
The new residential area is in an excellent location on the top of a hill with a stunning city view. Health care services, lush parks and great public transport connections are nearby.
"We are pleased to have the opportunity to carry out a project in Brno again after some time. The area on the border of Židenice and Vinohrady, where the apartments will be located, is one of the best in Brno. It offers beautiful views, surrounding greenery, good amenities, and excellent access to the city centre. We are entering this project with our long-standing partner YIT, who brings extensive experience and strong expertise in the field. I am convinced that together we will create attractive housing that meets the needs of modern urban life in the 21st century," said Lukáš Musil, board member of RSJ Investments.
”We have long been exploring the possibilities of Brno and now we have a great opportunity to expand YIT's business also in the second largest city in the Czech Republic. The joint venture that has now been agreed will be implemented through a co-partnership model in which YIT and our long-term partner RSJ Investments each own 50% of the joint venture. The business model of the project allows the parties to execute the project in a capital efficient way with limited equity contribution,” said Tom Sandvik, Head of Division CEE and Baltics at YIT.
For further information:
YIT’s Corporate communications, tel. +358 44 743 7536, [email protected]
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is a leading construction and development company. Building on over 110 years of experience, we develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, and infrastructure to support the green transition. We employ approximately 4,300 professionals in eight countries. Our revenue in 2023 was EUR 2.2 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.
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