The European Investment Bank (EIB) is signing a EUR 462 million finance contract with Central Trade Parks (CTP), an important developer of commercial property in the Czech Republic.
The CTP loan will represent major support for the corporate sector in the country. It will provide long-term financial backing for industry, trade and service-related activities. This provision of business infrastructure is essential to the country’s economic growth.
The new industrial and business park facilities will be located in various cities outside the Czech capital Prague including Brno, Ostrava, Plzeň and Mladá Boleslav. The project promoter will not only construct the facilities according to customer requests but will also be charged with their management and maintenance. The parks will be leased under long term contracts to clients.
The project covers inter alia the construction of a total of 806 000 m2 of warehouse space, 268 000 m2 of light industrial production space and 109 000 m2 of office space. In keeping with the EIB’s energy policies, the new properties conform to the highest energy efficiency standards and will provide considerable savings over any previous properties utilised by the new tenants. The new buildings being developed by CTP are expected to provide work accommodation for approximately 17 000 jobs.
EIB Vice-President Marta Gajęcka, responsible for lending operations in the Czech Republic, commented: “I greatly welcome the project signed today as it will meet the growing demand for modern and energy-efficient business premises across the Czech Republic. It will provide additional incentives for investors to develop their activities countrywide, with positive consequences for the economic progress of the Czech regions and strengthening of their competitiveness”.
Background:
The EIB, the European Union’s long-term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990 the EIB’s lending in the Czech Republic has amounted to some EUR 8.5 billion.
The Bank supports foreign direct investment because it contributes significantly to the modernisation of national economies by introducing new production technologies, creates employment, increases the revenues of the State and leads to the application of new management methods.