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May 17th, 2008
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Bigger isn't better

Akro Real focusing on quality over quantity

By Curtis M. Wong
For The Prague Post
April 16th, 2008 issue

KURT VINION/THE PRAGUE POST
Lukáš Najman, Akro Real's director, says the city's residential growth has skyrocketed.
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Akro Real, a.s.


nám I.P. Pavlova 5
Prague 2
Tel.: 221 592 030
Web: www.akroreal.com

Even in the world of real estate, good things often come in small packages. While many developers strive to be the biggest and the most extensive in their fields, the founders of Akro Real are perfectly content to maintain a portfolio that’s of a manageable size and focused entirely in the Czech capital.
Of course, that’s not to say the firm has been unsuccessful. Founded in 1997, Akro Real has established itself as a developer of premier luxury residences throughout the city of Prague. Currently in the works is the Atrium Villas Císařka project in the Smíchov neighborhood of Prague 5. The development encompasses a block of 13 luxury units to be built in three phases over the next year and a half. The firm’s impressive portfolio also includes residential projects in the Chodov, Kamýk and Kunratice neighborhoods of Prague 4, as well as the Řepy, Střešovice and Liboc sections of Prague 6.
Recently, The Prague Post chatted with Lukáš Najman, the company’s director and one of its four original founders, to discuss the company’s plans for the future as well as the reasons why, in the world of residential real estate, size doesn’t always matter.
The Prague Post: First of all, how did you become interested in Czech real estate industry?
Lukáš Najman: It started about 10 years ago, when we first established this company. We wanted to establish a real estate company, and within a half year, we [decided to focus] on the residential market. In 1998, the market was completely destroyed, so we started with a small project and continued to grow from there. Before that, I was studying and working in computer sales.
TPP: Did you always know that you wanted to work in real estate development?
LN: No, no. I started to study to be an electrician, so I thought my future would be with computers. But things change. … I received an offer to have a chance in real estate, and I found that I enjoyed it and that I was successful.
TPP: How would you describe the current state of the Czech residential market?
LN: The Czech residential market is still just starting. Ten years after the Velvet Revolution, in 1999, there was still only one large group, and this group eventually declared bankruptcy. This bankruptcy destroyed the market, and the market has been re-building itself in the time since then. I think there are too many companies in the market right now … which will eventually give up the residential market and the number of companies will reduce. There will be large firms such as Orco, and also, there will be a market of midsize development companies that will only work on small projects.
TPP: How has the Prague real estate market changed in the past five years?
LN: It’s changed a lot in the past five years. Residential growth has been very high, and there has been a problem with expensive construction costs. The large companies started to build the huge projects, which offer low prices for residences. Midsize companies are having problems with being [midsize] prices. So, we’ve tried to focus on luxury residences, and we are very successful in this segment of the market.
TPP: How would you describe Akro Real’s No. 1 goal in the industry?
LN: The goal is to find good locations for good projects. Also, to build well-designed architecture.
TPP: What sets Akro Real apart from your competitors, and what makes you unique?
LN: I don’t want to use the word “unique,” but our company is different because we are trying to put [out] only the best architecture that the Czech market can offer. We have 10 years of experience, and we offer a lot of services that other development companies do not. We have our own architects, and we have a lawyer who’s also one of our employees, so I think we offer a lot of security for our clients.
TPP: What’s the most enjoyable part of your job?
LN: It’s most enjoyable to create nice projects that we can look back on in three to five years and know that the customers are satisfied. And also just communicating with great people. I look forward to working with my colleagues every day, and I look forward to seeing how projects are developing. My work is mostly about problem-solving, so I’m always happy when those problems are solved.
TPP: What’s the least enjoyable part of your job?
LN: The least enjoyable element is communicating with the state. … There’s a terrible amount of administration and not being sure what problems that you have to solve. This is the worst. When we want to buy some land, or we want to build something, we never know what problems will develop. It’s [difficult to estimate] the length of time it takes to develop a project as a result.
TPP: Does your company have any interest in expanding outside of Prague — into the regional areas of the Czech Republic or internationally?
LN: To other countries, no. We’re planning to expand to some other areas, but there’s [not a strong market] for luxury projects in other areas. We’re looking into some of the Czech mountain regions, but we want to stay mostly in the Prague market. We feel very specialized for Prague, we know what the customers want, and we know a lot of architects in the city, so I can say that for the next three years or more we’ll probably stay focused in Prague.
TPP: What improvements would you like to see in the domestic real estate market?
LN: I’d like to see the market reduce its prices. I’d like to see the price increases slow down. Also, I have to say I’d like to see less state regulation of rents. A lot of nice areas are unused and not renovated.
TPP: Finally, what are your personal and professional plans for the future at Akro Real?
LN: I hope that my personal goals are the same as my professional ones. We’d like to maintain two middle-market or luxury projects each year. We don’t want to make the company very huge. … We don’t want to have the biggest company in the Czech Republic. We’d like to stay within these numbers. We’d mostly like to maintain high quality services and security for our clients.

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


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