On 22 March 2019, a groundbreaking ceremony took place near the small town of Týniště nad Orlicí in eastern Czech Republic, which not only kicked off the construction of a large industrial development, but also heralded the arrival of a new real estate service in the central European country.

The 13,900-square-metre build-to-suit facility for Cataler Corporation, a Japanese manufacturer of automotive exhaust catalysts for hybrid, gasoline and diesel vehicles, is the first example of a real estate deal in the Czech Republic whereby the property advisor, in this case Savills, has been solely responsible for connecting all sides of the development process: tenant, landowner, investor and construction manager.

Savills identified the 22,000 sq m site in Týniště nad Orlicí, where the landlord already had the correct permits; Savills knew the tenant, Cataler, was searching for a plot of this size to build its new industrial facility; Savills was also aware of the interest of investor DRFG in investing in real estate projects of this size and certain timeframe. By using construction management, DRFG will oversee the building of the state-of-the-art facility, which will be 100% pre-let by Cataler when it takes over the site in January 2020. The result is a completely new way of doing business.

Used previously by Savills in the UK, this real estate service might be new to the Czech Republic, though it could become more commonplace as the limited availability of land for the construction of industrial facilities in optimal locations will make such full-service options more attractive for all the parties involved. Of course, to successfully manage such a service requires a real estate advisor that has the knowhow, expertise and experience to connect all four sides of the transaction.

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