Penta Real Estate has acquired a 50% stake in HoldCo Bubny s.r.o., which owns key land plots in the Bubny-Zátory area. Penta Real Estate will become the lead developer of a new modern urban district directly connected to the attractive neighbourhoods of lower Holešovice and Letná, as well as the Vltava riverfront, creating a place to live and work for tens of thousands of people. A further 35% stake will be acquired by AKIPIA, a newly established investment group founded by independent investors Michal Strnad, Tomáš Brzobohatý and Marek Šmrha. The group will focus on attractive market opportunities, combining strong capital backing, flexibility and a long-term investment horizon. The remaining 15% will be retained by the current owner, J&T Group, which will remain involved in the project as a financial partner. By 2050, Bubny will be transformed into a new urban district comprising approximately 25 city blocks and up to 10,000 apartments. Total investment in the project is expected to reach approximately €3.7 billion.
Bubny is one of the largest undeveloped areas in Prague’s wider city centre and has been designated for the development of a fully integrated urban district combining a diverse mix of uses, including housing, offices, education and culture. The site stretches between the Vltavská and Nádraží Holešovice metro stations and covers more than 250,000 square metres. It also benefits from existing transport infrastructure, including the new Praha-Bubny railway station, which significantly improves connectivity to the area.
The new district will primarily provide urban housing, complemented by premium office space, rental and student accommodation, hotels, shops, services, schools, kindergartens, public amenities, a park and high-quality public spaces. Up to 10,000 apartments could ultimately be built in the area. The project will be delivered in several consecutive phases through to 2050 and will comprise approximately 25 city blocks. Once completed, it will create a new urban district serving tens of thousands of residents, visitors and people working in this part of Prague.
“Urban development opportunities such as Bubny come along once in a generation, and for Penta this is a unique opportunity to create a new part of Prague that will shape the city for the next hundred years. In an area with the potential for up to 10,000 apartments, we are building on twenty years of experience in transforming large urban sites. In terms of investment, Bubny will be three to four times larger than Waltrovka, our biggest district to date, making it by far the largest development project in Penta’s history. Our ambition is not simply to construct new buildings, but to create a fully integrated urban district that transforms what is currently a barrier within the city into a natural part of its urban fabric, bringing together housing, workplaces, services and high-quality public spaces. Together with the city and our partners, we will now work to establish a shared vision for the gradual development of this exceptional area,” says David Musil, CEO of Penta Real Estate.
Penta Real Estate’s investment in the Bubny project builds on the company’s long-term strategy of developing large-scale urban districts and regenerating brownfield sites. Approximately two-thirds of Penta Real Estate’s projects are developed on previously neglected brownfield land.
“Bubny represents an exceptional investment opportunity for our newly established AKIPIA group, offering significant long-term development potential. We are entering the project alongside experienced partners with the ambition of contributing to the creation of a fully integrated new urban district that will be important for Prague and for future generations of its residents. The project also fits perfectly with our strategy of building a portfolio of long-term investments, both independently and in partnership with other investors,” says Marek Šmrha, co-founder and managing partner of the newly established investment group AKIPIA.
“We have been following the Bubny area for a long time and recognise its potential for an attractive development project. This time, however, the investment perspective prevailed. Under the new ownership structure, we will therefore take the role of a passive investor,” says Dušan Palcr, Chairman of the Board of J&T Real Estate.
For decades, the Bubny-Zátory area has been regarded as the largest development reserve in Prague’s wider city centre. The new Metropolitan Plan has now paved the way for its transformation into a modern urban district offering housing, employment opportunities, public amenities and high-quality public spaces.