Penta plans to develop the site into a new residential and commercial district. This is Penta's third major real estate acquisition in the Czech Republic (following Florentinum and Masaryk Station Investment). The parties agreed not to disclose transaction details.
Penta plans to develop the 169,000 sq m site with an investment of over EUR 200 million. The former factory buildings have been demolished for the most part and the size and location of the site gives it a great development potential.
"Waltrovka is one of the best brownfields in Prague, it has great access and is adjacent to the attractive Malvazinky villa district. We would like to develop it into an attractive and modern residential district," said Petr Palička, Head of Penta's Czech Real Estate Division.
Penta expects a mixed development of the Waltrovka site in several phases – resulting in an administrative, residential and recreational section. The South part of the site already has a planning permit for 44,500 sq m of office space, whose design should be finalised by the end of this year. Rest of the site will contain residential buildings – approximately 350 residential units of varying types. Penta plans to commence this phase within two years, following an architectural design competition. The site will also contain 15,000 sq m of park space.
"The project has seen a significant restructuring during our involvement. We managed to alter the planning permit and obtain a number of approvals, which increased the site's value. We are very pleased with the transaction and wish Penta all the best for the upcoming development," says Barry Culen of Red Group.
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