International Property News

PPF, ECM Group owner to set up joint property business

3rd March 2009

The PPF group and Milan Janku, the owner of ECM Group, will set up a joint property holding company, PPF spokesman Alexej Bechtin told CTK Monday, adding it will be one of the largest property holding companies in Central Europe.

PPF will have majority in the new entity.

The new company will include PPF's investment property portfolio and its developer projects in the Czech Republic, Russia, Romania and China, and its part will also be the company Domus Eventis, a stake in the construction firm PSJ and based on the franchise system the retail chain Carrefour in Slovakia. A minority stake in ECM GROUP N.V. will be transferred to the new firm, while a majority stake will continue to be held by entrepreneur Milan Janku.

"This strategic merger is, in my opinion, a clear signal for investors and the entire property market that a new strong and stable multinational group is entering the market with promising prospects for dynamic sustainable growth irrespective of the current global recession," said Janku.

"The merger in the field of real estate business enriches the PPF group with experience and know-how of Milan Janku who should take over the management of the holding company. Our aim is to create a firm with real ambitions to become a leader in the real estate market in Central and Eastern Europe, Russia and China given the size of assets, comprehensive approach, managerial background, financial discipline and transparency," PPF shareholder Jiri Smejc said on the synergies brought about by the merger.

Source: Prague Monitor