"As part of the preparation of the unique Savarin project, we decided to increase our share in the project and buy out the initial investors who helped us get started. In the meantime, the project has taken on real contours, a new look and has moved on to the next phase, "said Omar Koleilat, CEO of Crestyl.
The Savarin project will be created by the reconstruction of historic buildings and in the courtyard between Wenceslas Square and Na Příkopě, Panská and Jindřišská streets. 55,000 square meters of shops, restaurants and offices are to be built on 1.7 hectares. This is more than, for example, the Florentinum administrative center at Masaryk Railway Station in Prague 1.
The bond issue is worth 2.2 billion crowns with the possibility of increasing to 3.3 billion. The issue manager is J&T Banka. "With regard to the nominal value of the bond in the amount of fifty thousand crowns, the bonds are also intended for small non-professional investors. This is a unique project in the center of Prague from a renowned developer, in addition with an annual yield of 6.9 percent, so high interest can be expected from investors, "said Monika Veselá, a spokeswoman for J&T Banka.
The bonds mature in 2026. The issue is made by Crestyl through a Malta-based Savarin company. Interestingly, the bonds do not have an annual coupon. The yield is determined by a discount on the nominal value of the bond. The issue price of all bonds is 71.288 percent of their nominal value. This is 50 thousand crowns for one bond. The net yield on bonds for Crestyl will thus be 1.5 billion crowns and 2.3 billion, respectively, in the event of a maximum increase in the nominal value of the issue.
The developer estimates that construction will begin in 2022, and be completed three years later. The design of the project is created by the British architect Thomas Heatherwick and his London studio.
Construction will start with the renovation of the Savarin Palace in Na Příkopě Street. "The Savarin project is in the final stages of preparation. We have a valid building permit for the reconstruction and restoration of the historic Savarin Palace. We are now dealing with the vacancy of the premises in the building by the tenants and we would like to start the reconstruction in the coming months. It will take two years," added the head of Crestyl Koleilat. The next phases of the project are still waiting for permission.
In addition to shops, restaurants and offices, the developer offers Prague that he can place the Slavonic epic by Alfons Mucha in the Savarin project free of charge. A suitable location has long been sought for the well-known work of an Art Nouveau artist.
"The search for a home in Prague takes almost a hundred years, and we are convinced that the Savarin Palace fulfills his grandfather's wish, to which he conditioned the gift to Prague. Thomas Heatherwick introduced us and also consulted with us on the vision of exhibiting twenty canvases of the Slavic Epic. I am convinced that my grandfather would be proud of such a presentation of his masterpiece," said the painter's grandson John Mucha.
Crestyl has been operating in the real estate market for twenty years. The group's current projects have an investment value of 1.2 billion euros. In addition to Savarin, it is building, for example, the Dock district in Liben or Hagibor near the Želivského metro station.