Prague—Dentons advised ČSOB and Česká spořitelna on the €74,13 million loan to Penta Real Estate to help finance the construction of the office buildings of the Nová Waltrovka real estate project in Prague's Butovice neighborhood. Nová Waltrovka includes two office buildings, a hotel and 400 apartments. In October 2022, Penta celebrated the successful completion of the rough construction. The office buildings and adjacent wide boulevard should be completed by autumn 2023.
Due to the current political and economic uncertainty, many ongoing real estate development projects are facing strong inflationary pressure. According to a recent statement by Penta, the Nová Waltrovka project budget had to be increased by CZK 1 billion (approximately €41 million) to CZK 5 billion (approximately €205 million) to reflect increased costs.
Partner Daniel Hurych, Co-head of the Banking and Finance practice in Prague, led the transaction team, with support from counsel Jan Hrivnák, who was responsible for the financing aspects, and counsel Jana Málková Želechovská, who was responsible for the due diligence review. The team also included associates Martin Fiala, Leontýna Bártová from the Banking and Finance practice, and Jan Blažek, Jan Sedlák and Samuel Bodík from the Real Estate practice.
Daniel Hurych commented: “In the current situation, where it is difficult to financially plan any long-term investment, we are pleased with the successful completion of the transaction. Regarding the project itself, I will just add that we favor the overall concept of the transformation of the Radlická brownfield, which respects the topography and landscape and works with ESG elements.”
The Waltrovka project began in 2012, when Penta acquired the 170,000 sq.m. Walter factory site with the ambition to turn it into a vibrant new city district. Alongside the office buildings, the complex also includes 700 apartments and houses, a kindergarten and a 20,000 sq.m. central park with a 1-kilometer running track. It has been a pioneering example of a successful brownfield development in Prague.
Dentons previously advised the lenders on the financing for the development of the residential buildings and several other office buildings as part of the Waltrovka project, including Aviatica, Mechanica and Dynamica.
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