| Imagine if you had bought property in Prague 8 | | | | "Central and Eastern Europe is a strategic market |
| years ago.... | | | | for us where we plan in the coming years to |
| Brno property has been getting a lot of exposure | | | | double the volume of our activities," commented |
| lately. And for good reason. Attractive deals in | | | | Stephan Semsch, Lufthansa's Director for Central |
| Prague are getting harder to find. Attention is | | | | and Eastern Europe, and added: "We thoroughly |
| beginning to turn elsewhere. | | | | assessed 30 possible localities in total and |
| Brno is the second largest city in the Czech | | | | ultimately chose Brno for its strategically |
| Republic. Being the business capital of Moravia it | | | | favourable position within the region and its |
| boasts some big name companies such as IBM, | | | | proximity to the important airline hubs of Munich |
| Siemens, Minolta CR, Honeywell Controls and FEI. | | | | and Frankfurt. Other great advantages of the |
| At the end of March 2005, RyanAir began daily | | | | Czech Republic are its membership in the EU, |
| direct flights from London to Brno. Flights from | | | | quality telecommunications and technical |
| Dublin to Brno are rumored to be next on the list | | | | infrastructure and the motivated, qualified and |
| of priorities. | | | | cost-effective work force." |
| In 2008 a major motorway is planned to be | | | | Daido Metal, producer of bearings for the |
| completed that will link central-northern Moravia | | | | automobile industry, signed an agreement on |
| with Poland making the area more attractive for | | | | future agreement on the purchase of land with |
| Polish investors and traffic. | | | | the city of Brno today to build a new production |
| Currently, property prices are a third of what is | | | | plant. The investment of Daido Metal will amount |
| available in Prague and there is a strong and | | | | to nearly 13 million euro and the plant will employ |
| growing rental demand for quality properties. | | | | up to 100 persons in the first stage. The |
| What are outside sources saying about Brno? | | | | production should be launched at the beginning of |
| The city of Brno has won the competition for | | | | next year. |
| European City of the Future 2004/2005 which is | | | | "The Czech Republic has a very strong position in |
| organized by the prestigious FDI magazine, a | | | | Europe in the automobile sector and even many |
| Financial Times publication, in the category of | | | | of our clients have their production plants here. |
| Visegrad group cities. It even beat out Prague and | | | | The production of our Czech plant will cover the |
| Budapest. | | | | demand generated both in the Central European |
| "Brno's fast economic growth and high | | | | countries and on the entire continent," says Issei |
| GDP-per-capita helped to push it ahead of other | | | | Yoshida, Managing Director of Daido Metal Europe. |
| cities in the region. The judges also gave top | | | | "Our Czech branch, Daido Metal Czech, will be the |
| marks for its economic potential and recent FDI | | | | first company within the entire group to operate |
| deals involving UK-headquartered engineering firm | | | | fully independently, without a strategic partner |
| IMI International, US technology group Honeywell | | | | from the same field. The only partners in the |
| and US advanced engineering company Danaher | | | | Czech Republic will be the locals, in particular in the |
| Motion, which between them created 900 jobs. | | | | area of technical engineering and development, |
| Brno also scored well for its international | | | | We also intend to cooperate with the city of |
| promotion strategy and incentives." | | | | Brno," says Tetsuro Nishiyama, Managing Director |
| Swiss company Aguna chose to build their new | | | | of Daido Metal Czech s.r.o. |
| plant in Brno. The company intends to invest | | | | Acer, the major manufacturer in the notebook |
| almost 250 million crowns during the first two | | | | sector will opened a new service center, with a |
| years. They will be able to employ at least 80 | | | | related call-center for customers in Europe, Middle |
| people in production and development of precision | | | | East and Africa (EMEA). The Acer shared services |
| instruments. A large part of the employees will be | | | | centre opened on July 1st in Brno, within the |
| college-educated specialists. | | | | industrial complex Cernovická Terrace and |
| "The quality level of the work force was the | | | | is expected to provide at least 60 new jobs. |
| deciding factor for Aguna." | | | | "We have been experiencing great market |
| "Their representatives are convinced that they will | | | | growth in the last two years in the countries of |
| find engineers in Brno who are just as capable and | | | | Europe, Middle East and Africa. The new centre |
| qualified as in Switzerland," said Tomás | | | | will replace the current solution, where customer |
| Bohrn, Project Manager at CzechInvest, and | | | | service is being provided via external service |
| added: "This precision engineering project | | | | providers," stated Stefan Engel, Region Manager |
| demonstrates the huge potential of Brno as well | | | | North + Central Europe and added: "Our goal is to |
| as the South Moravian region to attract technically | | | | provide even better support to all countries |
| advanced engineering R&D investments." | | | | involved in their native language and double the |
| Daikin Industries Ltd. is a world leader in the | | | | staff within one year." |
| production of modern air-conditioning equipment. | | | | GigaByte Technology, a producer of computer |
| After the double-billion investment in Plzen, the | | | | components, is building a high-tech repair centre in |
| Daikin company has decided to build a new | | | | Brno - Cernovicka Terasa where customers from |
| factory for the production of compressors into | | | | all over Europe will send their laptops, graphics |
| air-conditioners in Brno. In the first stage, the | | | | cards and motherboards. 25 million CZK is being |
| company intends to invest 1.2 billion crowns and | | | | invested with a projected 50 employees being |
| to create more than 500 skilled jobs. | | | | required. |
| "Our decision to invest at first in Plzen and now | | | | GigaByte Technology chose the Czech Republic |
| also in Brno is strategic and very important for | | | | over the other Central European countries, |
| the future. The Czech Republic should become the | | | | including Hungary, which was the Czech Republic's |
| important base for our production for the | | | | main competitor. Brno won mainly owing to its |
| fast-growing markets of the European Union," | | | | quality infrastructure and sufficient, qualified work |
| says Jiro Tomita, General Manager of Daikin | | | | force. |
| Europe, and continues: "The factory in Brno will | | | | The service centre will be built in Brno despite the |
| deliver compressors to our subsidiaries in Plzen | | | | fact that the company will not be receiving |
| and in Oostende, Belgium. It is the compressors | | | | government investment incentives. Its executives |
| that are the most important part and 'heart', | | | | thereby confirmed that Czech Republic has a lot |
| which secures the functioning of air-conditioning | | | | to offer foreign investors. |
| units." | | | | Progeon Ltd, a leader in third party outsourcing in |
| Symbol Technologies launched operation of their | | | | India, has completed its first phase of its project |
| new centre in Brno for shared customer support | | | | in Brno. The company currently employees 80 |
| and financial services for Europe, the Middle East | | | | people in its downtown Brno office and provides |
| and Africa (EMEA). Symbol Technologies has | | | | process management services in sixteen |
| already invested more than seventy million Czech | | | | European languages. Future growth plans will |
| crowns into technological equipment and within | | | | eventually offer career opportunities for hundreds |
| three years plans to set aside another almost half | | | | of people from Brno and the surrounding area. |
| a million crowns for wages, training and operation. | | | | "The Czech Republic is an attractive destination |
| The centre will initially employ 200 people and this | | | | for companies like ours that hope to reach a wide |
| number is expected to increase by another 550 | | | | European market," said Akshaya Bhargava, |
| employees. | | | | managing director and CEO, Progeon Ltd. "Brno |
| "We chose Brno for several reasons, namely the | | | | has excellent infrastructure and facilities, a |
| good offer of qualified labour, a good site and the | | | | supportive government, and people with multiple |
| good position of Brno in proximity to Symbol's | | | | language skills. |
| existing centres and customers in Europe," said | | | | The best quality and most beneficial industrial |
| Steve Priestley, Vice President and General | | | | zones in the Czech Republic were handed awards |
| Manager of Symbol for EMEA. "By concentrating | | | | by the Czech ministers. The fifth annual "Industrial |
| repair, customer call support and administration of | | | | Zone of the Year" awards were presented |
| finances, contracts and orders into one European | | | | according to the recommendations of the Ministry |
| centre we will be able to improve the overall | | | | of Industry & Trade and CzechInvest in |
| standard of our services and keep it at a high | | | | cooperation with the Association for Foreign |
| level for the long-term." | | | | Investment (AFI) and partners in the "Partnership |
| Austrian-German producer of health care and | | | | to Support Foreign Direct Investment in the |
| hygienic products Lohmann & Rauscher | | | | Czech Republic". |
| announced publically the end of December, 2004 | | | | The award for Industrial Zone with the Most |
| that they will build their new plant in South | | | | Economic Benefits was given to the "Cernovicka |
| Moravia. The company is investing more than 41.5 | | | | terasa" Industrial Zone in Brno, while the Zone |
| million euros into expansion and modernization of | | | | with the Most Social Benefit in 2004 was the |
| its production facility here and will create over 160 | | | | Ostrava Hrabova Industrial Zone - 1st Stage. The |
| new job opportunities. | | | | Industrial Zone with the Best Town Planning |
| "While the company in Germany concentrates on | | | | Solution is being prepared by a private developer |
| a selected part of health care products like plaster | | | | in Ostrava -- CTPark Ostrava, and the "Brownfield |
| casts and bandages, we are gradually transferring | | | | of the Year" was won by the Skoda Plzen |
| production of medical dressings, operating masks | | | | Industrial Zone. |
| and other surgical products to the Czech plants. | | | | Brno is a city that is going places. All indications |
| Production at the enlarged plant in Slavkov near | | | | strongly point that way. |
| Brno should be launched within two years and the | | | | But let's see some numbers. What are flats |
| main customers will be the European subsidiaries | | | | currently going for in Brno and what could we |
| of Lohmann & Rauscher," said Rudolf Vonys, | | | | expect for rental income? |
| procurator of Lohmann & Rauscher s.r.o, and | | | | Studio apartment (1 + 1). Seven minute walk to |
| added: "Our final customers are health care | | | | main town square. One minute walk to trams and |
| facilities all over Europe, for example German, | | | | biggest park in the downtown Brno area. Newly |
| French and Austrian hospitals and Dutch, Swedish | | | | renovated apartment in a heritage building. Listed |
| and Italian pharmacies." | | | | price 750 000 CZK. Est. Rent: 8000 to 9000 CZK |
| Japanese Company Ohmori Technos Corporation | | | | Two bedroom (3 + 1) flat on Merhautova St. |
| has decided to build a new factory in the area of | | | | Completely reconstructed. One minute walk to |
| Brno. At the outset, the company will invest | | | | the trams. Balcony. 90 m2. Big storage space in |
| about 15 million euros. Estimations suggest that at | | | | the basement. Asking price 1 590 000 CZK. Est. |
| least 150 new positions will be provided in the | | | | Rent: 12000 to 13000 CZK |
| Brno area. Production in the new plant is scheduled | | | | Three bedroom (4 + 1) flat in heritage building. |
| to start by the end of 2006. | | | | Eight minute walk to downtown square. One |
| "Today, the Czech Republic is known as the | | | | minute walk to the trams. Window view of the |
| center of industry in Europe. In fact, a broad | | | | biggest park in the downtown area. Newly |
| range of Japanese companies have successfully | | | | renovated. Balcony off the master bedroom. |
| established their plants in the country. Assessing | | | | Around 140 m2. Est. price 2 500 000 CZK. Est. |
| these situations, we have decided to carry out | | | | Rent: 14000 to 15000 CZK |
| this investment," commented Fumio Ohmori, | | | | At Czech Point 101 we are not going to hype you |
| president of Ohmori Technos Corporation. | | | | with inflated figures. All prices are based on our |
| The world's largest airline, Lufthansa from | | | | analysis of living and working right here in the |
| Germany, has officially committed, as of the end | | | | Brno market. |
| of February 2005, to opening a new shared | | | | One of the most important things about buying |
| services centre in the Moravian side of Czech | | | | investment properties is the neighborhood you |
| Republic. The new centre, which will be located in | | | | buy into. We can advise on the current 'hot' areas |
| Brno, will assist customers of Central and Eastern | | | | and those that will be getting attention in the near |
| Europe. It is expected to employ up to 100 | | | | future. Contact me at any time, for free, to get |
| people. This tenth call centre for Lufthansa, | | | | more information about the Brno real estate |
| named Global Telesales Brno s.r.o., will start | | | | market or start progressing on investment |
| operations on June 1st 2005. | | | | properties now. |