Multibillion-euro billion Prague regeneration project moves forward with new investor consortium

Central European developer Penta Real Estate is to lead the development of a major new mixed-use district in Prague following an investment in the city’s Bubny–Zátory regeneration area.

Penta has acquired a 50% stake in HoldCo Bubny, a landowning company within the development area. AKIPIA, an investment group founded by Michal Strnad, Tomáš Brzobohatý and Marek Šmrha, has acquired a further 35%, while J&T Group will retain a 15% interest as a financial partner.

The project is expected to attract around €3.7 billion in investment and could eventually deliver 25 urban blocks and as many as 10,000 homes.

Covering more than 250,000 sq m, the site is located between two metro stations and close to the recently opened Praha–Bubny railway station. It has long been regarded as one of the largest remaining development areas within Prague’s wider city centre.

Residential development will form the largest component of the new district, alongside offices, rental and student housing, hotels and retail. Plans also include schools, kindergartens, public amenities and a central park. Development is expected to take place in phases through to 2050.

The project forms part of a wider push to redevelop former industrial and underused land within European cities as demand for housing and modern commercial space competes with constraints on available urban land. For Prague, Bubny represents a substantial opportunity to add housing and employment space within an already well-connected part of the city rather than through outward expansion.

David Musil, CEO of Penta Real Estate, described Bubny as the largest project in the company’s history and said its objective was to turn a “long-neglected barrier into a natural extension of the city”, combining homes, workplaces, services and public spaces.

The transaction also brings newly established investment group AKIPIA into the project. Co-founder and managing partner Marek Šmrha said the group viewed Bubny as a long-term investment with significant development potential. J&T, meanwhile, said it would remain involved as a passive investor under the new ownership structure.

Brownfield regeneration is already a significant part of Penta Real Estate’s development activity, with around two-thirds of its projects located on former brownfield sites. The company has also recently expanded beyond Central Europe, entering the London market in 2025.