Barely a few months have passed since the reopening of the renovated Máj department store on Prague’s Národní třída, and the iconic building is awaiting another significant change. The Amadeus Real Estate group, behind the reconstruction of the iconic building, is preparing to sell it. If the transaction is completed, the fund managed by the investment company Atris will become the new owner. It is owned by the development company Amadeus.
May opened this year after a long renovation. The new look of the department store’s interiors, especially the part focused on entertainment, sparked great debates, including criticism. It was similar with the installations of the artist David Černý on the facade of Máj.
“We want May for the fund. I think it is a typical property belonging to a fund structure. It is a property at a good address that has worked, is working and will continue to work. We have every reason to believe that ownership of such a property is sustainable in the long term and that there is an appropriate return and growth potential,” said Tomáš Jícha, deputy chairman of the board of directors of Atris, in an interview with SZ Byznys.
“At the moment we are checking Maya’s condition. In order for the fund to buy such a property, it has to do a lot of thorough due diligence. We expect them to do well as it is a newly renovated property. Then we will discuss the price. I believe that we will be able to agree on a price that will bring investors a sufficient return and will also be satisfactory for the seller,” added the manager of Atris.
The Amadeus Group invested around 4.5 billion crowns in the reconstruction. It is therefore obvious that the selling price will be higher. This will be by far the largest acquisition for the fund managed by Atris.
“With the price for May, we will probably reach the higher units of billions of crowns,” noted Jícha from the management of Atris.
The Amadeus Real Estate group and the Atris investment company have the same ultimate owners in the form of the brothers Václav and Martin Klánový. Clansmen are also on the supervisory board of Atris. However, they assure that the transaction with May will be beneficial for both parties. This year, Amadeus and the fund managed by Atris also undertook a similar operation with the Palác Bristol project in Dlouhá Street in Prague 1.
Photo: Prochazka & Partners
“This is not a conflict of interests, but the use of synergies. Otherwise, we would be against each other. The interest of the shareholders of Atris investment company is the long-term and successful functioning of the Realita fund, which would not make much sense in the case of an “unfair” price for May,” Martin Klán told SZ Byznys.
“During the review of this acquisition, all possible reviews will be carried out by independent external advisors for the Realita fund. Two expert opinions will be drawn up by independent experts in the field of real estate, the results of which are checked by a committee of experts as a body of the fund. The entire process is overseen and the results of inspections and valuations will be commented on and evaluated by an external commercial real estate consultant,” added Martin Klán, adding that, last but not least, the Realita fund falls under the supervision of the Czech National Bank.
Photo: Michal Turek, Seznam Zpravy
The model, where the owner sells the property to a related fund, is starting to appear more and more often on the real estate market. In past years, this procedure was used, for example, by DRFG or Českomoravská nemovitstní.
This year, the YD Capital group sold some of its properties to its fund. Recently, the company Fidurock announced a similar plan with its apartment buildings. The real estate group Evropa Reality Group is also proceeding in a similar way.
Atris was founded on the foundations of the investment company Tesla. The Clans took over this in 2022. The fund’s portfolio includes, for example, real estate in the Bohdaneč Spa. According to the latest published information, around 16,000 people put money into the fund.
Big Changes Coming for the Máj Department Store – Again! 🎭
Well, well, well! Just when you thought the Máj department store on Národní třída in Prague was settling down after a fancy renovation, it seems it’s about to throw the biggest plot twist since *Lost*! The Amadeus Real Estate group is preparing to sell this iconic building, and if all goes smoothly, the Atris investment company will be the lucky new owner. That’s right, folks! Just a few months in, and this department store has already aced its first makeover challenge and is now eager for a fresh lease on life – or should I say, a fresh lease on someone else’s wallet? 💸
The “New” Look That Sparked Debate 🎨
May we remind you? The department store just opened its doors in May (amusing coincidence, isn’t it?), sporting a shiny new look. Inside, it’s bursting with entertainment options aimed at keeping shoppers entertained. The exterior’s recent installations from Czech artist David Černý? Well, they sparked discussions. Let’s face it, nothing screams “I’m an iconic building!” like polarizing art all over your front! It’s the type of décor that could either arrest you with its brilliance, or make you wish you’d worn your sunglasses. 😎
All About That Due Diligence 📜
Tomáš Jícha, the deputy chairman of the board for Atris, was reported saying that “Máj is a property at a good address” – which is real estate code for “please give us some money; we promise it’ll be worth it.” They’re doing their due diligence to ensure that the fund doesn’t end up regretting the purchase of a property that may or may not be haunted by the ghosts of Christmas shoppers past. They expect evaluations to come back rosy, particularly since they’ve just pumped 4.5 billion crowns into its renovation. I mean, if it doesn’t have a good return, that money just evaporated faster than a magician’s rabbit! 🐇🪄
Prices and Interests: Playing A Game of Financial Chess ♟️
With prices that could hit the higher units of billions of crowns, it’s clear that the Amadeus Group is expecting to cash in big time. They’re working hard to assure that this transaction benefits everyone involved – it sounds like an episode of *The Apprentice*, minus the dramatic boardroom exits. And let’s not overlook the fact that both companies share ownership links, which raises a few eyebrows. “Conflict of interest?” – It’s nothing more than “synergy” in this neck of the woods, they tell us. Investors’ money is on the line, folks, and nobody wants to be stuck with overpriced real estate that’s as useful as a chocolate teapot!
All Hands on Deck: Independent Reviews and Expert Opinions 🔍
They’re not leaving anything to chance, oh no. Independent advisors have been called in to ensure that every square inch of this property is scrutinized. They’re stacking the deck with two different expert opinions, all checked over by a committee like some sort of real estate Avengers team. It’s reassuring, right? After all, this isn’t just a weekend cotillion; it’s a serious business transaction under the eyes of the Czech National Bank! Talk about bringing in the big guns. 💥
More Deals Under the Radar 🚀
Funny enough, this isn’t the first time we’ve seen this kind of transaction lately. Other firms like DRFG and YD Capital have jumped on the bandwagon, proving that the new trend of owners selling to related investment funds is hotter than a toddler in a teddy bear suit at a summer barbecue. It’s practically become the “in” thing to do! Everyone wants a piece of that lucrative real estate pie before it vanishes. 🎂
Final Thoughts: Is It Profit or Pleasure? 💭
As Máj prepares for yet another transition, one can’t help but wonder: Is this all just a fancy dance to balance profit and shareholder interests? Or are we watching a thrilling episode of *The Real Estate Deal* unfold? Only time will tell if this new chapter will bring more satisfaction to investors or leave them longing for the days when shopping was less of a financial guessing game. Stay tuned, because this is surely just the beginning of an elaborate real estate drama unlike anything we’ve seen before!
Barely a few months have elapsed since the highly anticipated reopening of the meticulously renovated Máj department store located on Prague’s historic Národní třída, and it appears that this iconic structure is poised for yet another substantial transformation. The Amadeus Real Estate group, which spearheaded the ambitious reconstruction of this landmark building, is currently gearing up for a significant sale. Should this transaction proceed, the investment fund managed by Atris is set to become the new proprietor, aligning with the ownership of the development company Amadeus.
May opened its doors this year following an extensive and painstaking renovation. The reimagined interiors of the department store, particularly the entertainment-focused areas, have ignited spirited discussions and debates, drawing a mix of praise and criticism from the public. The installation of works by the controversial artist David Černý on the building’s façade has similarly garnered mixed reviews.
“We want May for the fund. I think it is a typical property belonging to a fund structure. It is a property at a good address that has worked, is working and will continue to work. We have every reason to believe that ownership of such a property is sustainable in the long term and that there is an appropriate return and growth potential,” articulated Tomáš Jícha, deputy chairman of the board of directors of Atris, during an interview with SZ Byznys.
“At the moment we are checking Maya’s condition. In order for the fund to buy such a property, it has to do a lot of thorough due diligence. We expect them to do well as it is a newly renovated property. Then we will discuss the price. I believe that we will be able to agree on a price that will bring investors a sufficient return and will also be satisfactory for the seller,” added the manager of Atris, emphasizing the importance of a meticulous evaluation before final negotiations.
The Amadeus Group reportedly invested around 4.5 billion crowns into the comprehensive reconstruction, thus establishing a clear indication that the anticipated selling price will exceed this figure. This prospective transaction stands to be the largest acquisition to date for the investment fund under the management of Atris.
“With the price for May, we will probably reach the higher units of billions of crowns,” noted Jícha from the management of Atris, highlighting the substantial financial implications of the deal.
The Amadeus Real Estate group and the Atris investment company share the same ultimate ownership, belonging to the Klán brothers, Václav and Martin. These influential figures also hold positions on the supervisory board of Atris. However, they assert that the transaction concerning May will yield benefits for both parties involved. This year, Amadeus and the fund managed by Atris successfully executed a similar transaction involving the Palác Bristol project located in Dlouhá Street in Prague 1.
“This is not a conflict of interests, but the use of synergies. Otherwise, we would be against each other. The interest of the shareholders of the Atris investment company is the long-term and successful functioning of the Realita fund, which would not make much sense in the case of an ‘unfair’ price for May,” Martin Klán remarked during his conversation with SZ Byznys, reinforcing the collaborative nature of the transaction.
“During the review of this acquisition, all possible reviews will be carried out by independent external advisors for the Realita fund. Two expert opinions will be drawn up by independent experts in the field of real estate, the results of which are checked by a committee of experts as a body of the fund. The entire process is overseen, and the results of inspections and valuations will be commented on and evaluated by an external commercial real estate consultant,” added Martin Klán, underlining the rigorous measures in place to ensure the integrity of the deal. He also noted that the Realita fund operates under the oversight of the Czech National Bank, further ensuring regulatory compliance.
The model in which an owner sells property to a related fund is gaining momentum in the real estate sector. This trend has been similarly observed in recent years with firms like DRFG and Českomoravská nemovitstní following suit.
This year, the YD Capital group sold several properties to its own fund, and recently, the company Fidurock announced plans to do the same with its apartment buildings. The real estate group Evropa Reality Group is also traversing a parallel path.
Atris was founded on the foundations of the investment company Tesla, which the Klán brothers took over in 2022. The fund’s portfolio includes various properties, such as real estate in the renowned Bohdaneč Spa. According to the most recent reports, over 16,000 investors have entrusted their funds to this investment strategy.
How can we ensure that our strategic synergies lead to sustainable investment outcomes?
Sense if our investments were poorly structured,” Jícha clarified, reinforcing the notion that the transaction isn’t just about profit but also about maintaining a sustainable investment strategy.
All in all, the deal involving the Máj department store highlights the ongoing trend of related parties collaborating in the real estate market. As firms explore innovative ways to leverage their portfolios, this particular acquisition stands out as a prime example of how strategic synergies can create pathways for growth in the property sector. The outcome of this transaction and its implications for the future of the Máj department store will be closely monitored by investors and real estate enthusiasts alike.
