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Ablon has the market's pulse

Property development and management company breaks new ground this year

By Curtis M. Wong
Staff Writer, The Prague Post
May 16th, 2007 issue

KURT VINION/THE PRAGUE POST
Managing Director Yishay Furman says Ablon is hoping to expand its business to other big cities in Central and Eastern Europe.
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Regional economic transition can either make or break a business. While these periods are especially daunting for real estate firms, Ablon s.r.o. has been an intelligent gambler in residential and commercial property. Having invested in the developing Budapest, Prague and Bucharest markets, Ablon’s East European risk-taking appears to be paying off.
Ablon, s.r.o.

Na Žertvách 29, Prague 8
Tel.: 227 133 111
E-mail: ablon@ablon.cz
Web: www.ablon-group.com

Located in the Palmovka Business Center in Prague 8, Ablon’s offices are decidedly intimate, with a staff of just 17 employees. However, its list of 2007 proposals are diverse and ambitious enough for a firm twice its size. This month, Ablon’s crews will break ground on a 6,000-square-meter (64,584-square-foot) office and retail facility in Karlín, followed in June by a 10,800-square-meter, 162-unit residential complex in Prague 9, which is slated for a July 2008 opening. The company’s portfolio also extends beyond the city limits, having just approved the purchase of a 428,000-square-meter plot in Řitka, where an “exclusive residential village” project is in the works.  
Founded in Budapest in 1993, Ablon focuses on the acquisition, leasing and management of commercial property and the acquisition, construction and sale of residential units. Following its success in Budapest, where the company accounts for 17 percent of the city’s commercial property, Ablon’s Czech branch opened in 1998, followed by the Bucharest office in 2005.
Managing Director Yishay Furman joined the Ablon team five years ago. A hotel industry veteran, the Israeli-born Furman offered his thoughts on the company’s success, a preview of a few upcoming projects and his vision for the future of Ablon.
The Prague Post: How would you describe Ablon’s philosophy, and why do you think the company has been so successful in the real estate industry?
Yishay Furman: Our philosophy is to have at least one or two new projects every year, but we wouldn’t invest in a project only for profit or just because it’s “sexy.” We’re very picky in choosing new projects, and we’re careful in our estimations. It has to meet our high standards — we really want solid projects with good locations. Of course, the staff is the most important factor in any company’s success. We’ve managed to find a team here that works in a very cooperative way. These are people who would understand our goals and philosophy, and we really enjoy working together. These aren’t only professional relationships, they’re also friendly relationships. I’m very proud of that.
TPP: What sorts of changes have come about on the Czech market during your time at Ablon?
YF: The economic atmosphere in the Czech Republic has changed considerably. Many different international companies have now established headquarters here, and it’s influenced the needs and standards of new offices. In Prague, the yields today aren’t as good as they were a few years ago, which is only natural because Prague is a small city, and it’s gradually becoming more expensive. Anyone who invested in Prague real estate several years ago made a great decision. However, Prague is still growing. The economy here is still getting better, and the Czech crown is getting stronger. The fact that the European Union is supporting and enforcing financial regulations here in the Czech Republic only contributes positively to the economy.
TPP: How does Ablon’s business in the Czech Republic compare to its counterparts in Hungary and Romania?
YF: It’s difficult to compare the business in Prague to our different branches. If you compare it to Budapest, it’s one situation; if you compare it to Bucharest, it’s a much different situation. Our Budapest branch is much older with a much larger staff. And from a professional point of view, the business atmosphere in Bucharest is much like Prague was 10 years ago. Of course, there are still lots of good investments in Prague depending on where you compare it to. You can still find and make good deals here, but they aren’t as common as they were before.
 
TPP: What especially sets Ablon apart from its competitors on the Czech real estate market?
YF: There are strong and professional competitors here in Prague, but with the Ablon vision and the backup from our investors, we plan on being one of the biggest developers on the Czech market. I am proud and happy to say that our clients and tenants are more than happy with the cooperation and services they receive. Most of our tenants choose to extend their stay in our buildings. In fact, when some of our existing tenants choose to expand into bigger offices, they often insist on doing it in another one of Ablon’s buildings.
TPP: How do you see the future of Ablon developing here in the Czech Republic?
YF: Right now we’re looking at several buildings in Prague 1 as possible offices and apartment buildings, and I’d like to expand into retail, specifically outlet centers. We’d like to see the company develop here much like the Budapest branch did in Hungary; we would like to be one of the biggest developers in the Czech market. This is our main goal. Until now, we’ve been focused on the capital city, but we’re considering expanding to other large Czech cities outside of Prague. We’ve just signed the purchase in Řitka, where the master plan is to create an exclusive village just outside of Prague. Personally, I would like to bring my hotel expertise to the Czech market as well. Since Prague is one of the most heavily touristed cities in Europe, you can’t really make a mistake in having a hotel here.
TPP: Would you like to see Ablon expand to new countries and, if so, where would you consider?
YF: Definitely yes. Unfortunately I can’t confirm anything right now, but I can tell you that Ablon is interested in taking its expertise in commercial and residential properties to other regions and expanding to other countries in Eastern and Central Europe. Of course, right now we’re aiming for the big cities.
TPP: What’s the most challenging task about working in the Czech real estate industry?
YF: Since real estate in the Czech Republic has changed dramatically in the past 15 years, it’s been a big challenge for Ablon to be a part of this change. [We’ve addressed this by] trying to stay one step ahead as our company vision says, to find the future market first and to create the changes by finding the new tendencies in the real estate market.
TPP: What’s the most enjoyable thing about working at Ablon?
YF: I can’t complain. Certainly the atmosphere here in the office is really great. On a more personal level, after five years in Prague, I still really enjoy my [daily commute] to the office. Sometimes I feel like I’m living in a postcard.
TPP: What advice would you give to someone who’s interested in working or investing in real estate here in the Czech Republic?
YF: Check carefully, do a lot of market research beforehand, and then go for it. Many investors come to Prague without knowing what the market’s really like. This is true for investors in every region. I think many people think that their expertise in other areas and regions is enough to make it in the Czech Republic. But you need to learn to think like a Czech.

Curtis M. Wong can be reached at specialsection@praguepost.com


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