News Article cooperation Czech Republic investment Kaprain Group Penta Penta Real Estate Prague transaction
by Property Forum | Investment

Kaprain and Penta Real Estate have entered into a cooperation agreement to build on the former Howden ČKD factory site adjacent to the O2 arena. Penta has bought a 40% stake in the project, which will create a new centre of Prague's Vysočany and Libeň districts on a site of over 50,000 sqm, Kaprain announced.

"The development on the site of today's Howden will play a crucial role in developing Vysočany and Libeň. Together with Penta's team, we will use all the experience we have gained in our previous two joint projects and all our projects to build a new modern centre for the whole of Prague 9. We will build the entire district by the concept of the zoning plan change prepared by the Prague 9 municipality," says František Dombek, Chairman of the Board of Harfa District and CIO of Kaprain Group.

"We have been cooperating with the Kaprain Group for several years in the construction around Vítězný náměstí in Prague 6. Vysočany also has potential, it will create a modern and perfectly accessible district in the wider city centre. We are happy to be involved in it, we will have a 40% stake in the joint venture," confirms David Musil, Commercial Director for Residential Development and Hospitality at Penta Real Estate.

The site involved in the transaction was historically owned by ČKD, with compressor and engine manufacturing taking place there for almost 150 years, most recently under the name Howden ČKD Compressors. This production is now part of the global compressor manufacturer Howden. It continues to operate in the Czech Republic but from a new production facility in Nehvizdy near Prague. Kaprain acquired the land in an open tender organised for Howden by the real estate company Colliers.

The construction will be closely coordinated with the city district's management. There is an urban planning study for the entire area, which was prepared for Prague 9 by architect Jiří Řezák of Qarta architecture. The site's centrepiece is Emil Kolben Square, open towards the O2 arena.