Penta Real Estate, a leading development company, has finalized a deal with Czech Railways, acquiring long-unused land near Prague’s magistral for a minimum of 244 million crowns. The purchase, situated in Florenc, aligns with Penta’s broader development plans for a new district around its recently opened office building, Masaryčka. This strategic move follows Penta’s recent acquisition of ČSAD Praha Holding, the owner of the Florenc bus station and adjoining plots.

Pavel Streblov, Director of Commercial Construction for Penta Real Estate, expressed the company’s intention to extend construction towards Florenc, connecting the city center with Karlín. The acquired land will enable negotiations with the city regarding changes to the zoning plan for this location.

Upon completion of streets and public spaces, a significant portion of the purchased land will become the city’s property. Some plots currently house a commercial center designed by architect Zaha Hadid, which Penta acquired from the railways in 2016.

Michal Krapinec, Chairman of the Board and CEO of Czech Railways, emphasized the advantageous conditions negotiated, highlighting that Penta will handle land modifications associated with infrastructure developments.

Funds generated from the land sale will support Czech Railways’ initiatives for expanding and modernizing the vehicle fleet and enhancing customer service. Krapinec outlined the railways’ priority of focusing on these aspects, emphasizing the sale of unused land over acting as developers. The proceeds will contribute to the deployment of new trains to regions and the introduction of the latest ComfortJet sets on long-distance routes.

The ongoing discussion about changing the zoning plan, spanning several years, has received prior approval from the Prague City Council. The agreement with Penta includes a commitment to ensuring at least 40% of the new buildings will be apartments addressing long-term housing shortages. The envisioned transformation aims to convert the currently impassable closed area into a vibrant city district connecting Florenc, Karlín, and Žižkov. The conclusion of the zoning plan change discussion is anticipated in 2024.

Article by Prague Forum