Prague Airport Project Moves Forward with Penta Land Purchase

Land needed for the privatization and expansion of the Prague airport has been purchased by the airport’s operator, Letiste Praha. The process of purchasing the land from its owner, Penta, has been ongoing for several years. The sale, which has already been approved by the Czech government, was paid for out of airport funds. No banks loans were needed for the transaction. Although the specific terms of the deal have not yet been released, the sale price is estimated at around CZK 4 billion.

Letiste Praha (www.csl.cz)
The Penta sale was not the only land transaction that needed to be completed. Letiste Praha also acquired land from nineteen other sources. The plan has been to develop and expand the airport, and then sell it to a private investor. The Czech government was originally hoping for a sale price around CZK 100 billion, but has lowered expectations due to current economic conditions. The sale may be canceled altogether if bids do not reach at least CZK 50 billion.

Penta Investments (www.pentainvestments.com)
Established in 1994, Penta is an equity and investment company operating in Europe and Russia. The Czech-Slovak firm is involved in acquisition of large medium-sized and companies, real estate development, leveraged buy-outs and buy-ins, and restructuring projects. Penta operates in many business sectors including energy, entertainment, health care, machine engineering, metallurgy, private banking, real estate, retail, telecommunications, and transportation.