Penta Real Estate has launched its expansion into the United Kingdom property market. The Central European group is set to develop over 680 new apartments across two premium sites in Canary Wharf and Nine Elms, both situated in the wider centre of London.

The total value of these two projects exceeds GBP 700 million, or EUR 800 million. Penta Real Estate is executing the developments in a joint venture with renowned London developer Ballymore. Both projects commenced construction this year and are scheduled for completion in 2029.

This transaction represents Penta Real Estate’s first move outside Central Europe. It follows the establishment of a London branch and aligns with the group’s wider strategy to extend its existing activities into new markets across Western Europe. The Penta Group is currently active in more than 10 European countries and reported a net profit of over EUR 620 million in 2024.

Marek Dospiva, Penta Partner, commented on the acquisition: “Being aware of the risks and challenges of development when entering new markets, we decided to join forces with a strong local partner, Ballymore, for our first projects in London. This is not a one-off speculative entry, but a strategic investment and a well-considered step in leveraging our know-how and capital, strengthened by the success of Penta funds, beyond the Central European region. With Ballymore, we share a passion for revitalising brownfields and transforming them into modern urban districts that offer quality architecture and public space.”

The London expansion is being managed by Pavel Streblov, a long-standing manager and member of the Board of Directors of Penta Real Estate. He stated, “We are entering the London real estate market with a long-term ambition to become a significant player in this development environment. In the future, we would like to operate here not only in the residential sector, but we are also actively analysing opportunities in office development, hotels, and student housing. In the next few years, we aim to significantly expand our local office, carry out similarly large investments in billion-pound volumes, and establish Penta as a strong player capable of delivering major development projects even in London.”

Penta Real Estate and Ballymore hold equal shares in the joint venture. The first project, Cuba Street, will deliver a striking 52-storey residential tower with 434 apartments in the former docks of Canary Wharf. It will include generous communal spaces, such as a gym on the 32nd floor, and London views. It will also provide the largest new publicly accessible park delivered in the area in recent decades, with a portion of the tower reserved for affordable housing.

The second project, The Capston, is the final stage of the prestigious Embassy Gardens development in Nine Elms, close to the new US Embassy. This phase will offer 247 luxury apartments in two buildings, 11 and 22 storeys high, with views of the River Thames. The Capston will feature a luxury Art Deco-style lounge, a wellness zone with a swimming pool, a fitness centre, and access to shared rooftop terraces. Residents will also have access to the iconic swimming pool spanning between two buildings from the previous phase, where Ballymore built over 1,200 apartments.

Mr Streblov added, “Given the relatively weakening supply of new real estate projects in London, this volume of apartments under construction immediately places us among the significant players in the market.”

John Mulryan, CEO of Ballymore, said, “Partnering with Penta and securing financing for more than 680 new homes is a significant achievement in today’s challenging environment. We look forward to working with Penta on its first projects in the United Kingdom, which will be based on shared values and a focus on quality, architecture, and public space.”