The UOHS approved the sale of the Prague complex Florentinum

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

Brno - The Office for the Protection of Competition (ÚOHS) has approved the sale of the Prague administrative complex Florentinum to the Chinese group CEFC. ČTK was informed by the chairman of the ÚOHS, Petr Rafaj. The authority assessed the transaction only through a simplified procedure. The administrative complex is being sold by the Penta group. The value of the transaction has not been disclosed by the companies, but according to ČTK information, the price is around 283 million euros, thus over 7.7 billion crowns. CEFC defeated the German Allianz in the final round.

"This is an important step towards completing the sale of Florentinum. We naturally welcome the ÚOHS decision," said Penta spokesperson Ivo Mravinac.

Penta presented its first real estate project, an administrative palace with a commercial arcade, courtyard, and garden, in January 2012. It was commissioned after 20 months of construction at the end of 2013. The total investment was around 200 million euros, which is about 5.5 billion crowns.

"Florentinum is more than just an excellent business opportunity for us. It is part of our strategy to build a European headquarters in the Czech Republic. We want to continue developing the Florentinum complex and create the best conditions for CEFC’s own background as well as for all its tenants," said CEFC China president Chan Chao-tuo earlier.

Florentinum is fully occupied; the largest tenants include EY, law firms Havel, Holásek & Partners, as well as companies Renomia, Veolia, BlueLink, or Bank of China, while Dr.Max and Fortuna from the Penta group, as well as Penta’s headquarters, are also located in the building. All 70 tenants have long-term contracts.

The location of Florentinum in the center of Prague will only gain significance. In its immediate vicinity, at the site of the current brownfield at Masaryk Station, Penta plans to revitalize the currently forgotten area with modern administrative buildings featuring shops and restaurants, as well as a park, according to a project by architect Zaha Hadid.

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