Contera founders turn Czech brownfields into CZK 16bn business parks

Tomáš Jirku and Dušan Kastl, co-founders of the Czech development and investment group Contera, started from scratch in 2009. Today their portfolio is valued at more than CZK 16 billion, and on major industrial projects they work strategically with Blackstone, the global alternative asset manager.

Contera's headquarters is in Říčany near Prague, on the grounds of the former giant Interiér Říčany. Fifteen years ago the complex was slowly falling apart. Now it is a lively place with dozens of companies at work. The heart of the park, the Terra building, smells of fresh bread from a local artisan bakery. Three years ago Contera's offices were named the most innovative in Czechia.

“When we bought the complex, it was a dead space. We managed to bring it back to life,” says Contera partner Tomáš Jirku. A modern industrial zone first appeared on the site of the old plant, but the founders did not stop there. Today a business park under the Citysite brand is growing here, and Contera sees its future in it.

A concept that attracts a variety of tenants. Citysite buildings are designed as modular Small Business Units (SBU) for small and medium-sized companies. The interior adapts to the tenant's needs: a showroom with a warehouse, a shop, light production, or offices with laboratories. In Říčany alone, neighbors include a maker of superconducting materials, a cord blood storage company, window sellers, a paint manufacturer, an optics distributor and a premium fitness center. “The advantage of Citysite is that it attracts a very diverse range of clients,” notes Dušan Kastl.

Flexibility proven in practice. In Liberec, Contera is preparing space for a climbing and entertainment center of about 4,500 m². Another park houses a veterinary clinic, and one of the units was even prepared for a hospital.

Expansion. All Citysite projects are built on brownfields, that is, former industrial sites. The developer brings forgotten urban districts back to life. Companies that already occupied such buildings are happy to move to a more prestigious setting, so existing tenants often secure pre-leasing at the level of 20–30%.

The operating complexes now total around 50,000 m², and Contera will build at least another 80,000 m² in the next two to three years. Business parks are being prepared in Bratislava, Brno, Ostrava and Liberec. New buildings in Říčany are due to be completed by the middle of next year, followed by Liberec, Brno and Bratislava, and Ostrava in 2028. Several more sites in Czechia and Slovakia are being considered for redevelopment in three to four years.

How it all began. Dušan Kastl, now 51, and his partner Tomáš Jirku, a year older, met at CTP, the industrial real estate developer led by Remon Vos. They decided to go it alone in 2009. The plan was five large projects with international clients, but the global economic crisis hit Czechia in full force, and the company had to adapt quickly.

The founders put the secret of their growth this way: “We would never have grown like this if we had done everything the way others do. We don't chase volume; we have always looked for locations and prepared projects that fill a gap in the market.”

By the Around Prague newsroom