Penta diversifies its portfolio and focuses on markets with high growth potential. This step includes both acquisitions and the development of new projects in healthcare, pharma and real estate. Penta is collaborating on the expansion with renowned architects, banks and investment partners who bring additional know-how as well as further strengthen the fund’s reputation.

Ultimately, we want foreign markets to play a bigger role than CZ and SK combined. Given the purchasing power in Western Europe and other countries, such as in Asia, this goal is certainly attainable. The expansion of Dr. Max in Italy alone would position the local market as one of the most significant where Penta operates. What we have built in Central Europe is transferable to other markets, and we are confident that, with additional capital, we can achieve it.

Our advantage is a quick decision-making process and an agile approach to managing acquisitions. In comparison with big Western players, we still benefit from lower labour costs. We are a strategic, long-term oriented investor without a fixed investment horizon. We hold key assets for 15 to 20 years; selling them is not our priority. Thanks to this investment patience, we can create value through active business development, not merely by optimising capital returns in the short term.

Certainly, the difference lies in the size of the given acquisition and, consequently, the capital requirement. In acquisitions, we manage a variety of regulatory hurdles, whether it’s the permitting process in real estate, restrictions for betting offices or the state healthcare system. In every market, including the EU, the situation is unfortunately slightly different, which necessitates an individual approach. I will illustrate this with the example of building laws and implementing regulations, which also correspond with the length of the permit process. Here, we want to be more diversified and ensure that we do not solely rely on the laws of one market, which can ultimately delay a project, regardless of its quality. On the contrary, we are targeting both sectoral and regional diversification, which has been going very well for us in recent years.

We have been inspired by Western standards for many years. Aspects that commonly work and enhance the lives of residents in Western Europe are gradually reaching us. At the same time, our style of management and optimisation in projects has already proved its added value in other European countries, where we transfer our know-how. We build the portfolio with an emphasis on counter-cyclical and defensive sectors, such as healthcare, pharmaceutical services and regulated markets like sports betting. With this approach, we are unique in many markets.

Currently, we have more opportunities than we can process and implement, and that was one of the main reasons the Penta Fund was established. We estimate that capital expenditures in the next five years will be at least EUR 2 billion and will be directed towards our core businesses, such as those we are showing investors today. The existing diversification will continue at a similar ratio.

The advantage of Western European projects is the size of the market and the stable legal environment. After integration into our existing companies, we expect the internal rate of return to once again exceed 15% p.a. in the long term. Penta has not been an opportunistic investor for roughly the last fifteen years. The approach to risk is fine-tuned and tested over the years. We never start a business we don’t know. A more interesting yield, however, may be found in Asian markets, where Dr. Max and Fortuna are now exploring.

In our projects, we strive to achieve the highest environmental, social and regulatory standards, regardless of the market. Attractive and very tangible proof of this is Penta Real Estate’s approach to ESG. We focus on comprehensive urban development and revitalisation projects, mostly on former, often long-neglected brownfield sites. This is a very complex job, requiring much more effort and time than building on the outskirts of cities. We always strive to enhance the surrounding area of our projects by creating high-quality public spaces. We are a trustworthy and reliable partner for cities, authorities and the public. We also appreciate our collaboration with universities by organising lectures and supporting students to embrace our know-how.

Penta Real Estate is one of the few developers capable of developing large land areas, building entire new districts in such a way that they are pleasant to live in throughout the day. This approach ensures that residents have access to shops, services and public amenities, find employment opportunities and enjoy a balanced mix of ownership, rental and short-term housing. Furthermore, it also provides quality public spaces and all the necessary infrastructure. This is a unique approach among developers not only in the Czech Republic, but also among the main players in Western markets.

The management method will not change with foreign expansion. We will continue to build on the robust background of Penta Investment Limited in Prague and Bratislava. We have centralised risk management, an analytical team, treasury and other functions in the domestic markets. On foreign markets, we always look for experienced managers for individual projects with perfect knowledge of their field and the given region. Managerial teams then have the motivation to start their businesses and use the strength of the entire group for this purpose. International elements have long been integrated into the overall functioning of the group. An example can be one of the partners, Fabrice Dumotheil, who has been with Penta since 2012 and is responsible for the group’s strategic financial management and its IT development. Thanks to that, English is the common form of communication within Penta, both at the level of strategic management and in the approval of budgets and new acquisitions.

The Penta group has strong capital, which it has demonstrated in other regions – for example, with planned investments amounting to an additional EUR 2 billion for development and a record profit of EUR 621 million in 2024. Western European countries are greatly investing in healthcare, pharmaceuticals, green real estate and ESG quality buildings.

Therefore, our expansion to Western Europe represents a strategic step for Penta towards internationalisation and greater diversification of its investment portfolio. This will provide investors with exciting new opportunities in stable and developed markets.