Penta will pay at least 243.8 million crowns for the land. This amount may increase depending on when Prague changes the spatial plan on the spot. "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 spatial plan. At the same time, we will not pay the costs of land improvements, which are related, for example, to the local Florenc metro station or to the archaeological survey of the site. This will be ensured by the developer," explains Michal Krapinec, chairman of the board and CEO of České drahé.

The sale represents the last phase of concluding contracts for the transformation of the surroundings of Masaryk nádraží, which České dráhy agreed between 2004 and 2007 based on the winning bid of an international consortium of companies with the participation of ING Real Estate.

The administration of the city of Prague and the city districts of Prague 1 and Prague 8 are counting on the construction of a new district in the Florence location. In 2021, an international urban planning competition took place, which outlined the future form of this area. The winning proposal from the team of Unit Architects, A69 – Architects and Marko & Placemakers was discussed and approved by the Prague City Council in spring 2022.

Map of the area of Florence where Penta plans to buildBy: Penta,

"We would like to build further towards Florence in the intentions of the 2021 urban planning competition and thus connect the city center with Karlín. Thanks to the purchase of land, we can now complete negotiations with the city on the change of the zoning plan for this location, as well as negotiations on contributions. A large part of the land being purchased now will become the property of the city after the construction of streets and public spaces," adds Pavel Streblov, director of commercial construction at Penta Real Estate.

The discussion of the change to the territorial plan has been going on for several years. The municipality previously agreed with Penta that at least 40 percent of the apartments, which have been in short supply in the city for a long time, will be in the new development. The aim is to transform the existing impassable and closed area into an urban district connecting the area of Florence, Karlín and Žižkov. It is expected that the discussion of the zoning change will be completed in 2024.

Construction from Masaryčka to Pernerova street

In October, Penta Group completed work on two nine-story office buildings near Masaryk Railway Station, designed by Zaha Hadid Architects. Their construction lasted over 2.5 years and the cost was 2.5 billion crowns. The company will invest additional money in the planned reshaping of the track, which, according to representatives of Penta, could begin construction at the end of March next year. The plots in the direction of the Florenc bus station should follow.

Meanwhile, the Penta group intends to acquire other parcels in the Florence location. Specifically, through the company Penta Real Estate, he seeks to buy the bus station in Florence and the adjacent land owned by the company ČSAD Praha Holding. The merger of companies is currently being assessed by the Office for the Protection of Economic Competition (ÚOHS) in the so-called simplified procedure. The companies did not disclose the price of the transaction.

If Dospiva negotiates this deal, Penta will control a significant part of the plots above one of the three transfer stations of the Prague metro, which is one of the most lucrative places for construction in the center of the metropolis. Specifically, Penta would own the territory from the entrance to Masaryk station from Havlíčkova Street in Prague 1 to Pernerova Street in Karlín. Some time ago, it also acquired a plot above the Florenc metro station, where the Billa grocery store is now located. There is also construction to be done there.

Penta wanted to buy the land near the station already in the past, but the current owners ČSAD Praha Holding were planning their own project there. In cooperation with the land owners, Prague previously launched a competition for the territory of the station, the neighboring area of former warehouses and the cargo area of the Masaryk station north of the track and east of the highway. According to the winning proposal, in the future 50 percent of the building will be offices, 40 percent apartments and ten percent shops. "All city functions will be on site. Housing, offices, shops, there can be a hotel or student accommodation," said the head of Penta's real estate division, Petr Palička, in an interview for e15, which we will publish in the next few days.

Waltrovka, Nuselský brewery and the covered Main Station

Penta Real Estate is currently one of the most important developers who significantly influence the appearance of the central part of the capital city. In November, it completed the first stage of construction in the Nová Waltrovka location in Prague's Jinonice, where it created twenty-four thousand square meters of rentable office space. Specifically, the developer completed and approved two office buildings, Metalica and Legatica, on site. Eight dozen apartments in the residential part of the project will also be approved on site soon. However, the construction does not end there. It will continue until 2027. The next stages in Nová Waltrovka will include residential buildings with four hundred apartments and other shops.

In September, the council of the Prague 3 district approved two contracts with Penta and the Finep group regarding construction in the location of the former Žižkov freight station. This opened the way for developers to change the spatial plan, and on the other hand, the city and the city district itself will receive a total of 267 million crowns in so-called contributions.