A gold mine from a potato fieldLand
In 2015, we were contacted by an owner who was offering a plot of land approximately two hectares in size for the construction of a warehouse beside the D1 motorway in Ostředek. Our task was to find interested parties and sell the plot. We examined the local zoning plan, andfound that the neighbouring plots are also designated for industry and logistics. At the same time we knew that, in terms of price, it would be best to contact larger players in industrial development, who however are interested in areas from ten hectares upwards. We therefore prepared all the necessary materials, established a process, and tried to consolidate as many plots as possible in collaboration with the clientin such a way that the participating owners come to an agreement, and sell their plots simultaneously in a certain phase of the project. In this way, we finally managed to prepare an area of 18 hectares. One of the world’s largest developers, the American companyPrologis, was the buyer. Our client’s plots appreciated by hundreds of percent.
It was key for us not to approach the transaction as selling two hectares of land in this location, but to think about who the buyer could be, and how to prepare everythingto make the plot more interesting for them. This is the essence of land development. We create added value by consolidating the plots for a certain purpose. In practice, we agree with all the owners that they’ll sell to a designated interested party simultaneously, under the given conditions. At the same time, we take care of the permit process, which for example may end with a zoning decision. This guarantees that a certain building can be constructed on the plots in accordance with the zoning plan. Nowadays, we usually immediately prepare speculative development, which we then offer for sale to developers or end users.
“It was the first transaction where we said to ourselves that we’ll do land development differently, and that’s how we’ve been doing it since. We transformed a potato field into a gold mine,“ says founder of 108 AGENCY and spiritual father of the entire transaction in Ostředek, Jakub Holec.