News Article brownfield Czech Republic development investment land Penta Real Estate Prague
by Property Forum | Investment

Penta Real Estate has acquired unused land in Florence from České dráhy for CZK 234 million (€9.565 million). A new district is to be built on the brownfield site near the main thoroughfare, which will seamlessly connect to two buildings near Masaryk railway station, reports.

According to the daily, the purchase price that Penta will pay to ČD depends on the proposed change to the zoning plan. Penta will immediately pay Czech Railways a price corresponding to the maximum buildability of the area according to the current zoning plan, i.e. CZK 234 million (€9.565 million). However, the amount may increase depending on its final form. "In addition to the amount we will receive for them right away, the contract also provides for an additional payment based on the final form of the master plan. At the same time, we will not pay the costs of land improvements related to, for example, the local Florenc metro station or the archaeological survey of the site. This will now be provided by the developer," says Michal Krapinec, Chairman of the Board and CEO of ČD.

According to the online daily, the construction on the land in the Florence locality is also planned by the Prague city administration and the Prague 1 and Prague 8 municipal districts. The future shape of the new district was outlined in an urban planning competition, which was won in 2021 by a proposal from the team of Unit Architects, A69 - Architects and Marko &P lacemakers. Discussions on the change of the master plan have been ongoing for several years. The municipality had previously agreed with Penta that the new development would contain at least 40 percent of the apartments, which have long been in short supply in the city. The aim is to turn the existing impenetrable enclosed area into a vibrant urban district linking the Florence, Karlín and Žižkov areas. The rezoning hearing is expected to be completed in 2024.

The investment group Penta, through Penta Real Estate, is also seeking to acquire ČSAD Praha Holding, which owns the Florenc bus station and adjacent land. The merger is still being assessed by the Office for the Protection of Competition (ÚOHS), which is expected to issue a decision within the next week.