21. 10. 2024
Life to industry, campuses to towns
The industrial real estate market is a sector in which, at first glance, the cards have long been dealt. Situated in the middle of Europe, the Czech Republic has very good conditions to be a major regional logistics and industrial centre, and it therefore attracts the attention of the biggest European players. Nevertheless, a young Czech company is working its way into this strong competition and it want to take this discipline up a level. And so far, it is doing just that. Urbanity, a member of the investment group M. L. Moran, has been collecting one award after another under the guidance of the experienced visionary Roland Hofman for its industrial complex in Tachov and it has continued to expand its portfolio of industrial parks. Roland has demonstrated his managerial skills in M. L. Moran in the past through the management of Technistone and Thermoplast. After studying finance in Ostrava and at London’s University of Greenwich, he gained valuable experience in crisis management by cooperating on several major projects with the top experts of the field, Zdeněk Šmejkal and Václav Novák, but he has been specialising in investment, management and the development of commercial real estate for a long time now.
When you mention industrial complexes, one imagines unsightly buildings, dirt and noise. And when there is also a brownfield in the picture, there is a lot of waste, an ecological burden and other problems. Is that correct?
When you talk about brownfields, you’re not far from the truth. These are often long-neglected formerly industrial sites with pollution or buildings in a dissolute state. Places where you encounter a lot of skeletons in the closet and where you will be faced with problems associated with reclamation. On the other hand, these are areas that, for historical reasons, are situated in attractive locations, such as directly in towns or near an existing transport infrastructure. And last but not least, these are usually sites that people already traditionally associate with some kind of industry. These are all prerequisites for the fact that when you enter a place, you can be seen as a continuation of sorts and the locals will more easily accept you. The term industrial complex is more complicated and the situation is rapidly changing. The way we think about this in Urbanity today and how we implement it, for example, at our campus in Tachov or most recently in Bruntál, they are definitely not places with unsightly buildings that are dirty. The manufacturing campuses we are building meet high standards in terms of sustainability, user comfort and surrounding infrastructure and services. They are closer to functional urban districts with the necessary civic amenities.
These days, the Czech industrial real estate market is quite advanced and has several large players operating on it. What led you to decide to go into this business?On the contrary, I saw a huge opportunity on the market. A space to create a product that no one has offered. I had my vision of how an industrial complex could look and function, which was diametrically different from practically all existing industrial parks, so I did not really think about the competition. Meanwhile, it was clear that clients would have a growing interest in a product focused on user comfort and sustainability.
But isn’t it a bit crowded here now?As long as unsightly boxes are being built along motorways, there is more than enough room for industrial building or complexes designed by architects, built in accordance with ESG principles, providing a very comfortable and designer work environment for employees and other users.
Urbanity confidently refers to itself as a niche company in the industrial real estate segment. What makes you different?
As far as I know, we are the only one that builds each individual industrial campus on the basis of an architectural design by a different architect. Following Tachov, we are building Bruntál and preparing other locations in the same original way. The goal is not only to create unique and recognisable industrial campuses, but also to give them a specific atmosphere that is characteristic of the given site. Each of our locations has its genius loci and we approach the sites sensitively. At the same time, similar elements that make up Urbanity’s signature style are intertwined throughout our projects. We stand out in the range and combination of services and civic amenities offered according to the needs of a particular region, as well as in our work with renewable energy sources. This is how we fulfil the definition of sustainability. The fact we are different has been confirmed by the many prizes and awards we have received in recent months for various areas of our activities, from Best of Realty for the construction quality, to Estate Awards for ecology, to the ESG rating for sustainability.
In Tachov, you are planning to include a preschool and a doctor’s office in the complex.
We already have a doctor, relax zones and a children's group in Urbanity Campus Tachov. We are also preparing an expansion to include, for example, hotel accommodations, a cafeteria, fitness centre, a public forest park and a preschool. This corresponds both to the requirements of the inhabitants of the town, with whom we work in close cooperation, and to the needs of our tenants and their employees. They also need to have affordable housing available. This is one of the reasons we are preparing residential construction directly in the campus.
I suppose you also have your own 5G network and car charging stations. It is actually kind of an industrial complex of the future.
That future is now. Moreover, what you mentioned is more like the cherry on top. The main thing takes place under the hood and on the roofs of the buildings within our campus. In Tachov, we have installed one of the largest rooftop solar power plants in the Czech Republic, which is connected to a giant battery storage system. The energy produced will cover up to forty percent of the annual consumption of the production complex, including the aforementioned car charging stations. We plan to significantly expand this storage capacity in the coming years. We also collect wind data and are considering the use of wind power plants, and we have a hydrogen strategy prepared. When managing heat energy, our clients use waste heat from production technologies that are connected to heat exchangers. Water management is also on an advanced level, with the use of detention basins and seepage furrows, and we are striving to cover the consumption of drinking water from the complex’s own wells. To manage the individual technologies, a smart energy management system based on the online optimisation of energy flows is gradually being expanded. And I could keep going in this vein for quite a while.
Is this something that clients ask you to do or are you creating your own concept through which you want to differentiate yourself?
We entered the sector with a clear vision of creating a production campus with a beautiful design, sophisticated architectural solutions, energy self-sufficiency and a superior spectrum of services offered. We have a completely different position than the logistics complexes by the motorways. We are building new districts on brownfields in towns, putting the needs of different groups of people in the forefront, we hold a dialogue with the town, the local community. We are in the immediate vicinity of a skilled workforce, close to the people. And thanks to an attractive working environment, we become the first choice for local workers, which our clients can benefit from. It is certainly no coincidence that Urbanity Campus Tachov is the very first real estate project in the Czech Republic to receive the prestigious BREEAM Communities certification, moreover with the highest rating in the CEE region, which is usually obtained by sustainable parts of cities and public spaces with a mixed utility function.
Sustainability is a big topic these days, which is being discussed in all cases. But it’s not just about green roofs and photovoltaics.
Sustainability is a concept that I perceive in the broader context of business management and development; it includes economic, environmental and social aspects. The need to be as environmentally friendly as possible is now inevitable. Plus, it isn’t true that sustainability is expensive. That isn’t the case in the long term. Moreover, thanks to technologies and a quality strategy, a quick return on meaningful investments can be achieved.
Renewable energy sources, however, are perhaps the essential element of ESG for industrial campuses.
To be frank, renewables are not just a must-have for industry these days. In a few years, it won’t even be possible to build a new building without a solar power plant. There is already a lot of interest in green certified electricity and the fact that we have our own large renewable resource in Tachov, which can cover a significant part of the consumption, is another huge added value for our tenants. At the same time, it is a natural component of our vision of sustainable production campuses and, of course, fits into the objectives of our long-term ESG strategy.
But it’s not just about the environmental aspect, is it?
The economic, social and ethical dimensions are also important. Our priority is not to quickly build and sell projects. We are focusing on a permanent vision, which we have in all our locations. We add missing civic amenities to regional towns, such as pre-school education, a hotel, doctors, restaurants, retail and housing. We are involving the general public in the creation of the campuses and the mix of services we offer in the region depends not only on participation, but also on very detailed socio-economic and demographic studies and analyses that we always prepare for the locality. Our projects are currently evaluated by unique certifications such as the aforementioned BREEAM Communities, which evaluates entire functional districts of towns and cities, instead of individual buildings. We take into account the impact on the local community, which means, for example, supporting local suppliers and creating new opportunities connecting local talent with global opportunities. We pay attention to ethical standards. We are transparent in our behaviour; we responsibly manage supply chains and support the creation of pleasant working conditions.
And what is the companies’ stance on sustainable industrial parks? Is there interest in this theme?
Sustainability is often only associated with the aspect of nature conservation, but, as I have already mentioned, environmental sustainability combined with modern technologies is closely related to economic sustainability, quality civic amenities and comfort, and in turn, has a great connection to the sustainability of human resources and the overall competitiveness of the given site in the context of the changing requirements of clients and companies. The interest in sustainable industrial campuses is therefore growing, in addition to the general pressure and debate associated with ESG. For many companies, it is important or even necessary to meet the requirements for environmental and social responsibility under pressure from their customers, investors and regulators. ESG is becoming part of a positive image.
ESG is still a relatively new topic. Is it just about European taxonomy or do you see changes in how individuals perceive it?
ESG may be a relatively new topic, but its importance is rapidly intensifying. It is not just about European taxonomy and regulatory requirements, but we also see significant changes in the perception of individuals. People have seen climate change with their own two eyes, thus social responsibility is now inevitable. Therefore, they are far more interested in how companies affect the environment and society, and how they are managed. Companies are coming under pressure to integrate ESG principles into their strategies. Investors, banks, and companies increasingly prefer organizations that actually practice their ESG strategies, confirming that this is not just a formal requirement, but a deeper change in the thinking and priorities of companies and their individuals.
Preschools, medical facilities, co-living, you want to have all that in your campuses. So far it is actually a niche market. Do you think it will be the norm someday?
It will always depend on the location of the industrial complex and the willingness of the developers to offer such a standard. There is an unimaginable amount of extra work and energy behind it; the driving force must be both a grand vision and an attention to detail. Our campuses are basically functional urban districts. We are an important investor in the localities, making the whole area, town and region more attractive. In addition, we are still talking about the significantly higher satisfaction of all campus users and more efficient operations. This can be true in many other regions, but also in countries, depending on the will and intention of the investors. For Urbanity, exceptionality is a basic characteristic.
Comfort for the users of your complexes and the general aesthetic perception of space, it seems, play a big role in your vision.
Aesthetics is of key importance for us. We combine functionality with visual harmony, an abundance of natural light, greenery and ergonomics. Our spaces promote creativity, well-being and a connection with the company culture, thus contributing to higher employee satisfaction, loyalty and productivity. We take the attractiveness of the working environment to a whole new level. As a result, almost exclusively locals work in our campuses. Not only do our clients benefit from this, but so does the entire community.
Do you draw inspiration somewhere? In Western Europe, in Scandinavia?
I see inspiration all around me, especially during trips, whether to the countryside or abroad. Not because I would necessarily see something there that I would like to introduce here, but thanks to the possibility to observe and perceive the events around me. Then I find relevant information and connect the dots about whatever grabs my interest. I always think about steps two and three. We are creating the future in the present.
How did you get into industrial development in the first place?
It was a natural move from commercial real estate. I was always interested in and enjoyed larger units with overlap. In addition, I clearly saw a lot of room for creating a product that no one has offered yet, even though it was clear that clients would be interested in it. In other words, I identified a niche on the market. We are giving the industrial property segment a new direction, and I perceive that we also positively inspiring the competition.
How do you see the future of industry in the Czech Republic? Do we have a chance to be among the best in Europe, technologically speaking? Now we tend to be called Europe’s assembly shop.
Unfortunately, in many respects we have missed the boat in the Czech Republic. There are not enough attractive industrial zones here for interesting investments with added value. Many neighbouring countries, from the former East Germany to Poland, are better prepared in many aspects. And the same applies to transport infrastructure. We are a land of unused brownfields, unfinished motorways and slow railways. The situation is getting better, and of course we can’t be counted out yet, but we need to work hard to not become an outdoor museum where all modern industry has moved elsewhere. In Urbanity, we are working on this every day.
Thanks to your previous experience, you have the opportunity to make comparisons with other countries. Does the Czech Republic have a real chance to become a leader in something in the European context? Or a trend-setter?
Trend-setting has a lot to do with mind-setting. There are talented visionaries and leaders in every country, and the Czech Republic is no exception. It depends on the conditions and functioning of the market, whether it allows new trends to be set or not. Our business segment is still distorted by practices from the “90s”, but the situation is improving, thanks in part to our positive example.
What are your nearest plans? You mentioned a new campus in Bruntál.
In May, we obtained a building decision for the reconstruction and completion of the industrial complex in Bruntál. The campus with new buildings and a comprehensive infrastructure, including connections to the surrounding roads, will be going up between the exits to Opava and Krnov. Like in Tachov, the existing buildings will be complemented by four additional production halls. They will have areas of between 3500 and 10,000 m² and regional companies will find a place to do business in them. The fourth building will be exceptional, however, both in its size, because it will have an area of 35,000 m², and also in its net height of twenty metres, which allows the location of automated and robotised operations, or the use of the hall on floors. This superhall will be ideal for a large industrial manufacturer who would like to settle in a region close to the border with Poland.
And are there any more distant plans?
In the next few years, we have a lot of work to do both in Tachov, which is growing rapidly in terms of the number of buildings and further infrastructure, as well as in Bruntál, where we have just received the construction decision. But this is just the very beginning. We are currently completing two new acquisitions and we have another one under negotiation. You may be surprised.
https://www.adresa.cz/clanky/roland-hofman-zivot-do-prumyslu-kampusy-do-mest
When you mention industrial complexes, one imagines unsightly buildings, dirt and noise. And when there is also a brownfield in the picture, there is a lot of waste, an ecological burden and other problems. Is that correct?
When you talk about brownfields, you’re not far from the truth. These are often long-neglected formerly industrial sites with pollution or buildings in a dissolute state. Places where you encounter a lot of skeletons in the closet and where you will be faced with problems associated with reclamation. On the other hand, these are areas that, for historical reasons, are situated in attractive locations, such as directly in towns or near an existing transport infrastructure. And last but not least, these are usually sites that people already traditionally associate with some kind of industry. These are all prerequisites for the fact that when you enter a place, you can be seen as a continuation of sorts and the locals will more easily accept you. The term industrial complex is more complicated and the situation is rapidly changing. The way we think about this in Urbanity today and how we implement it, for example, at our campus in Tachov or most recently in Bruntál, they are definitely not places with unsightly buildings that are dirty. The manufacturing campuses we are building meet high standards in terms of sustainability, user comfort and surrounding infrastructure and services. They are closer to functional urban districts with the necessary civic amenities.
These days, the Czech industrial real estate market is quite advanced and has several large players operating on it. What led you to decide to go into this business?On the contrary, I saw a huge opportunity on the market. A space to create a product that no one has offered. I had my vision of how an industrial complex could look and function, which was diametrically different from practically all existing industrial parks, so I did not really think about the competition. Meanwhile, it was clear that clients would have a growing interest in a product focused on user comfort and sustainability.
But isn’t it a bit crowded here now?As long as unsightly boxes are being built along motorways, there is more than enough room for industrial building or complexes designed by architects, built in accordance with ESG principles, providing a very comfortable and designer work environment for employees and other users.
Urbanity confidently refers to itself as a niche company in the industrial real estate segment. What makes you different?
As far as I know, we are the only one that builds each individual industrial campus on the basis of an architectural design by a different architect. Following Tachov, we are building Bruntál and preparing other locations in the same original way. The goal is not only to create unique and recognisable industrial campuses, but also to give them a specific atmosphere that is characteristic of the given site. Each of our locations has its genius loci and we approach the sites sensitively. At the same time, similar elements that make up Urbanity’s signature style are intertwined throughout our projects. We stand out in the range and combination of services and civic amenities offered according to the needs of a particular region, as well as in our work with renewable energy sources. This is how we fulfil the definition of sustainability. The fact we are different has been confirmed by the many prizes and awards we have received in recent months for various areas of our activities, from Best of Realty for the construction quality, to Estate Awards for ecology, to the ESG rating for sustainability.
In Tachov, you are planning to include a preschool and a doctor’s office in the complex.
We already have a doctor, relax zones and a children's group in Urbanity Campus Tachov. We are also preparing an expansion to include, for example, hotel accommodations, a cafeteria, fitness centre, a public forest park and a preschool. This corresponds both to the requirements of the inhabitants of the town, with whom we work in close cooperation, and to the needs of our tenants and their employees. They also need to have affordable housing available. This is one of the reasons we are preparing residential construction directly in the campus.
I suppose you also have your own 5G network and car charging stations. It is actually kind of an industrial complex of the future.
That future is now. Moreover, what you mentioned is more like the cherry on top. The main thing takes place under the hood and on the roofs of the buildings within our campus. In Tachov, we have installed one of the largest rooftop solar power plants in the Czech Republic, which is connected to a giant battery storage system. The energy produced will cover up to forty percent of the annual consumption of the production complex, including the aforementioned car charging stations. We plan to significantly expand this storage capacity in the coming years. We also collect wind data and are considering the use of wind power plants, and we have a hydrogen strategy prepared. When managing heat energy, our clients use waste heat from production technologies that are connected to heat exchangers. Water management is also on an advanced level, with the use of detention basins and seepage furrows, and we are striving to cover the consumption of drinking water from the complex’s own wells. To manage the individual technologies, a smart energy management system based on the online optimisation of energy flows is gradually being expanded. And I could keep going in this vein for quite a while.
Is this something that clients ask you to do or are you creating your own concept through which you want to differentiate yourself?
We entered the sector with a clear vision of creating a production campus with a beautiful design, sophisticated architectural solutions, energy self-sufficiency and a superior spectrum of services offered. We have a completely different position than the logistics complexes by the motorways. We are building new districts on brownfields in towns, putting the needs of different groups of people in the forefront, we hold a dialogue with the town, the local community. We are in the immediate vicinity of a skilled workforce, close to the people. And thanks to an attractive working environment, we become the first choice for local workers, which our clients can benefit from. It is certainly no coincidence that Urbanity Campus Tachov is the very first real estate project in the Czech Republic to receive the prestigious BREEAM Communities certification, moreover with the highest rating in the CEE region, which is usually obtained by sustainable parts of cities and public spaces with a mixed utility function.
Sustainability is a big topic these days, which is being discussed in all cases. But it’s not just about green roofs and photovoltaics.
Sustainability is a concept that I perceive in the broader context of business management and development; it includes economic, environmental and social aspects. The need to be as environmentally friendly as possible is now inevitable. Plus, it isn’t true that sustainability is expensive. That isn’t the case in the long term. Moreover, thanks to technologies and a quality strategy, a quick return on meaningful investments can be achieved.
Renewable energy sources, however, are perhaps the essential element of ESG for industrial campuses.
To be frank, renewables are not just a must-have for industry these days. In a few years, it won’t even be possible to build a new building without a solar power plant. There is already a lot of interest in green certified electricity and the fact that we have our own large renewable resource in Tachov, which can cover a significant part of the consumption, is another huge added value for our tenants. At the same time, it is a natural component of our vision of sustainable production campuses and, of course, fits into the objectives of our long-term ESG strategy.
But it’s not just about the environmental aspect, is it?
The economic, social and ethical dimensions are also important. Our priority is not to quickly build and sell projects. We are focusing on a permanent vision, which we have in all our locations. We add missing civic amenities to regional towns, such as pre-school education, a hotel, doctors, restaurants, retail and housing. We are involving the general public in the creation of the campuses and the mix of services we offer in the region depends not only on participation, but also on very detailed socio-economic and demographic studies and analyses that we always prepare for the locality. Our projects are currently evaluated by unique certifications such as the aforementioned BREEAM Communities, which evaluates entire functional districts of towns and cities, instead of individual buildings. We take into account the impact on the local community, which means, for example, supporting local suppliers and creating new opportunities connecting local talent with global opportunities. We pay attention to ethical standards. We are transparent in our behaviour; we responsibly manage supply chains and support the creation of pleasant working conditions.
And what is the companies’ stance on sustainable industrial parks? Is there interest in this theme?
Sustainability is often only associated with the aspect of nature conservation, but, as I have already mentioned, environmental sustainability combined with modern technologies is closely related to economic sustainability, quality civic amenities and comfort, and in turn, has a great connection to the sustainability of human resources and the overall competitiveness of the given site in the context of the changing requirements of clients and companies. The interest in sustainable industrial campuses is therefore growing, in addition to the general pressure and debate associated with ESG. For many companies, it is important or even necessary to meet the requirements for environmental and social responsibility under pressure from their customers, investors and regulators. ESG is becoming part of a positive image.
ESG is still a relatively new topic. Is it just about European taxonomy or do you see changes in how individuals perceive it?
ESG may be a relatively new topic, but its importance is rapidly intensifying. It is not just about European taxonomy and regulatory requirements, but we also see significant changes in the perception of individuals. People have seen climate change with their own two eyes, thus social responsibility is now inevitable. Therefore, they are far more interested in how companies affect the environment and society, and how they are managed. Companies are coming under pressure to integrate ESG principles into their strategies. Investors, banks, and companies increasingly prefer organizations that actually practice their ESG strategies, confirming that this is not just a formal requirement, but a deeper change in the thinking and priorities of companies and their individuals.
Preschools, medical facilities, co-living, you want to have all that in your campuses. So far it is actually a niche market. Do you think it will be the norm someday?
It will always depend on the location of the industrial complex and the willingness of the developers to offer such a standard. There is an unimaginable amount of extra work and energy behind it; the driving force must be both a grand vision and an attention to detail. Our campuses are basically functional urban districts. We are an important investor in the localities, making the whole area, town and region more attractive. In addition, we are still talking about the significantly higher satisfaction of all campus users and more efficient operations. This can be true in many other regions, but also in countries, depending on the will and intention of the investors. For Urbanity, exceptionality is a basic characteristic.
Comfort for the users of your complexes and the general aesthetic perception of space, it seems, play a big role in your vision.
Aesthetics is of key importance for us. We combine functionality with visual harmony, an abundance of natural light, greenery and ergonomics. Our spaces promote creativity, well-being and a connection with the company culture, thus contributing to higher employee satisfaction, loyalty and productivity. We take the attractiveness of the working environment to a whole new level. As a result, almost exclusively locals work in our campuses. Not only do our clients benefit from this, but so does the entire community.
Do you draw inspiration somewhere? In Western Europe, in Scandinavia?
I see inspiration all around me, especially during trips, whether to the countryside or abroad. Not because I would necessarily see something there that I would like to introduce here, but thanks to the possibility to observe and perceive the events around me. Then I find relevant information and connect the dots about whatever grabs my interest. I always think about steps two and three. We are creating the future in the present.
How did you get into industrial development in the first place?
It was a natural move from commercial real estate. I was always interested in and enjoyed larger units with overlap. In addition, I clearly saw a lot of room for creating a product that no one has offered yet, even though it was clear that clients would be interested in it. In other words, I identified a niche on the market. We are giving the industrial property segment a new direction, and I perceive that we also positively inspiring the competition.
How do you see the future of industry in the Czech Republic? Do we have a chance to be among the best in Europe, technologically speaking? Now we tend to be called Europe’s assembly shop.
Unfortunately, in many respects we have missed the boat in the Czech Republic. There are not enough attractive industrial zones here for interesting investments with added value. Many neighbouring countries, from the former East Germany to Poland, are better prepared in many aspects. And the same applies to transport infrastructure. We are a land of unused brownfields, unfinished motorways and slow railways. The situation is getting better, and of course we can’t be counted out yet, but we need to work hard to not become an outdoor museum where all modern industry has moved elsewhere. In Urbanity, we are working on this every day.
Thanks to your previous experience, you have the opportunity to make comparisons with other countries. Does the Czech Republic have a real chance to become a leader in something in the European context? Or a trend-setter?
Trend-setting has a lot to do with mind-setting. There are talented visionaries and leaders in every country, and the Czech Republic is no exception. It depends on the conditions and functioning of the market, whether it allows new trends to be set or not. Our business segment is still distorted by practices from the “90s”, but the situation is improving, thanks in part to our positive example.
What are your nearest plans? You mentioned a new campus in Bruntál.
In May, we obtained a building decision for the reconstruction and completion of the industrial complex in Bruntál. The campus with new buildings and a comprehensive infrastructure, including connections to the surrounding roads, will be going up between the exits to Opava and Krnov. Like in Tachov, the existing buildings will be complemented by four additional production halls. They will have areas of between 3500 and 10,000 m² and regional companies will find a place to do business in them. The fourth building will be exceptional, however, both in its size, because it will have an area of 35,000 m², and also in its net height of twenty metres, which allows the location of automated and robotised operations, or the use of the hall on floors. This superhall will be ideal for a large industrial manufacturer who would like to settle in a region close to the border with Poland.
And are there any more distant plans?
In the next few years, we have a lot of work to do both in Tachov, which is growing rapidly in terms of the number of buildings and further infrastructure, as well as in Bruntál, where we have just received the construction decision. But this is just the very beginning. We are currently completing two new acquisitions and we have another one under negotiation. You may be surprised.
https://www.adresa.cz/clanky/roland-hofman-zivot-do-prumyslu-kampusy-do-mest