Profitable Penta invests

The total value of Penta’s assets increased by 21 pct to EUR 8.5 bln (EUR 7 bln in 2015). The main factors behind the growth in Penta’s profits included the expansion of its portfolio companies as well as the disposals of the Florentinum office complex and its subsidiary Gimborn. In 2016 Penta invested a total of EUR 510 mln in the acquisition of new projects and the development of its current investment portfolio. It greatest expenditure was in the financial services, real estate and retailing sectors.

“Penta is focusing on its growth and increasing the value of its six long-term investment platforms: financial services, commercial properties, retailing, medical care services, production and media,” explained Łukasz Waszak, Penta Investments’ investment manager. “In 2016 we continued the international expansion of our Dr. Max pharmacy chain and our Fortuna swimming pool chain. In terms of other companies, we decided that the previous year was a good time for making internal investment in increasing their competitiveness. This involved long-term and large scale enterprises, such as the construction of a multidisciplinary hospital in Bratislava, the production of a new generation training plane, the L-39NG by Aero Vodochody, as well investment in the digitalisation of processes and services, the development of the online sales channel, and in customer service, particularly in our retail companies,” he added.

In 2016 Penta’s transactions portfolio registered total revenue of EUR 5.6 bln and EUR 322 mln in adjusted EBITDA. Penta is one of the main employers in the region, providing 32,000 jobs across its portfolio of companies. Last year Penta spent EUR 201.3 mln on taxes, social insurance and deductions on account of health insurance for its employees.

“Penta is one of the most significant players in the commercial property segment in the region and its portfolio of projects has been growing impressively. Its current real estate projects constitute 15 pct of the net value of Penta’s assets and its portfolio includes 25 projects in Slovakia, the Czech Republic and Poland, such as its flagship projects: Masaryk Station in Prague and Čulenova in Bratislava, which are being carried out in cooperation with the world-class Zaha Hadid architectural studio. In 2016 we started the construction of projects with a combined area of over 171,000 sqm and completed nearly 40,000 sqm gla/nsa, 55 pct of which was in the office segment and 45 pct in the residential segment. In Poland we are currently carrying out two office projects in Warsaw and are looking at potential new projects,” commented Damian Grzywacz, the Poland country managing director of Penta Investments, who is responsible for real estate investment.