Prague - PPF Investments, which manages the finances of the Czech billionaire Petr Kellner, continues to invest in real estate.

While in the first quarter of 2007 real estate investments constituted only 7 percent of the group's activities, it now makes us 23 percent.

The group manages more than one billion USD, which is currently more than CZK 16 billion.

PPF Investments is keen on investing not only in Czech real estate market, but abroad as well.

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A drive towards the east

Most of the PPF's foreign investments are aiming for Russia, Ukraine and Romania.

Consultant firms consider these markets as promising and in the developing stages. These regions are still experiencing a lack of office space and apartment buildings, thus profits from real estate investments are expected to continue increasing in the future.

Probably the largest planned foreign investment is a new residential development on the outskirts of Tolyiatti in Russia. PPF expects it will build roughly 7,000 flats as well as various amenities, such as shopping malls. Costs are expected to total approximately USD 600 million.

Real estate experts believe that the project might also be successful because there is an automobile and truck factory AutoVaz located in Tolyiatti which will be expanding its production in the near future.

New developments in ČR  as well

In the Czech Republic, PPF owns 25 properties, which include Tokovo tower in Holešovice, currently rented out to the Supreme Audit Office.

PPF Group - a company linked through Petr Kellner to PPF Investments - is investing in real estate as well. It owns, for example, a new administrative building near Diplomat hotel.

One of the companies that are to move to this building is PPF Group itself.

In addition, PPF Group is preparing a commercial venue on Vítězné square, together with Prague 6 officials. Costs are estimated at about CZK 1 billion (40 million euro).

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