Prime Highlights:
- Penta Real Estate is strengthening its presence in the UK, with plans to invest up to £600 million as it expands across London’s property market.
- The company is targeting a mix of residential, hotel, student housing, and office developments, reflecting strong confidence in the UK’s long-term growth.
Key Facts:
- Penta Real Estate plans to deploy around £100 million in equity over the next 12 months, with total investment rising through leverage and joint ventures.
- Construction has already begun on its first UK projects after receiving Gateway 2 approval, with completion expected in 2029.
Background:
Penta Real Estate, the property division of Czech Republic–based investment group Penta Investments, is preparing a significant expansion in the UK property market, with up to £600 million in combined debt and equity earmarked for new investments.
The firm entered the UK market in December with the acquisition of two major living-sector developments in London, valued at approximately £700 million. Following this entry, Penta Real Estate is now actively seeking additional sites across the capital as it builds a long-term presence in the country.
According to Pavel Streblov, business director for commercial real estate at Penta Investments, the company is attracted by the transparency and maturity of the UK property market. He said that while the UK welcomes investment, development opportunities are limited, which makes projects with planning approval especially valuable.
Over the next year, Penta Real Estate plans to invest about £100 million in equity, typically contributing around 20% to 30% of each project. With the use of leverage and potential joint ventures, total investment capacity could rise to between £300 million and £600 million.
The company typically operates with loan-to-cost ratios of 60% to 70%, depending on market conditions. Existing partnerships include a joint venture with Ballymore, delivering 680 new homes across developments at Canary Wharf’s Cuba Street and The Capston in Nine Elms.
Penta Real Estate’s UK investment strategy focuses on projects that already have planning consent and spans all areas of London. Penta Real Estate is focusing on hotels, mid-market housing for international buyers, student accommodation, and build-to-rent projects. The company is also bidding for office developments in key London areas, including the City, West End, and Midtown.
In addition to new developments, Penta is looking to grow through mergers and acquisitions and is considering the purchase of smaller development firms based in London.
Penta Investments manages around £11 billion in assets across Europe, with real estate making up about 18% of its business. Penta Real Estate controls roughly €2 billion in property assets and operates from offices in London, Prague, and Bratislava.
Work has already started on its first UK projects after receiving Gateway 2 approval, with completion expected in 2029.
