Penta sold Florentinum to the Chinese CEFC

photo: http://www.jakubcigler.archi/florentinum

Prague - The investment group Penta today signed an agreement to sell its Prague administrative complex Florentinum to the Chinese group CEFC, which made the highest bid. This was stated in a press release. The company did not disclose the value of the transaction, but according to CTK information, the price is around 283 million euros, or over 7.6 billion crowns. CEFC defeated the German Allianz in the final rounds.

"Interest in Florentinum exceeded the borders of Europe. From a number of offers, five remained in the shortlist, with two applicants making it to the final. The renowned German investor was surpassed by CEFC's offer only in the last weeks," said Penta partner Marek Dospiva.

Penta presented its first real estate project, an administrative palace with a commercial passage, courtyard, and garden, in January 2012, and it was put into operation after 20 months of construction at the end of 2013. The total investment was around 200 million euros, or about 5.5 billion CZK.

"Florentinum is more for us than just an excellent business opportunity. It is part of our strategy to build a European headquarters in the Czech Republic. We want to further develop the Florentina complex and create the best conditions for both CEFC's own base and all its tenants," said CEFC China's president Chan Chi-tuo.

Currently, Florentinum is fully occupied, with the largest tenants being EY, law firms Havel, Holásek & Partners, as well as companies Renomia, Veolia, BlueLink, and Bank of China, while Dr. Max and Fortuna from the Penta group also reside in the building, as does Penta's headquarters. All 70 tenants have long-term contracts.

"From the moment Penta purchased the land, we completed Florentinum in four years. During that time, it was necessary to select the best architectural design, process the project, remove the original buildings of the Rudé Právo printing houses. And after obtaining all the necessary permits, to build and lease the entire facility, filled with modern technologies. That would be unimaginable under today's conditions," noted David Musil, who is responsible for the Florentina project at Penta.

The location of Florentina in the center of Prague will only gain significance. In its immediate vicinity, at the current brownfield site near Masaryk Station, Penta plans to revitalize the now-forgotten area with modern administrative buildings, shops, and restaurants, but also a park, according to the design by architect Zaha Hadid.

Penta is a Central European investment group, founded in 1994. It operates mainly in healthcare, financial services, manufacturing, retail, and real estate development. It manages a single fund of its partners, the company's shareholders. Its portfolio companies employ more than 37,000 people, and the group's assets reached seven billion euros in 2015. Penta operates in more than ten countries in Europe and has its representations in Prague, Bratislava, Warsaw, and Munich.