Penta Real Estate and SUDOP Invest Start Construction of CZK 2.9 Billion Churchill III in Prague

PRAGUE — Penta Real Estate and SUDOP Invest have started construction of Churchill III, a CZK 2.9 billion office-led mixed-use project next to Prague's main railway station, the firms announced Nov. 9. Raiffeisenbank will be the main tenant, leasing approximately 16,000 square meters and relocating its headquarters from the Pankrác district in 2028.

Churchill III Project Details

Churchill III will offer approximately 18,000 square meters of office space (about 193,750 square feet) and more than 2,000 square meters of retail space (about 21,500 square feet). Raiffeisenbank's commitment of roughly 16,000 square meters, or about 172,200 square feet, represents approximately 89% of the office area.

Jakub Cigler Architekti designed the building. The project targets LEED Platinum certification and will also add new retail and services, as well as improved pedestrian and cycling connections.

The CZK 2.9 billion figure is the project's development investment, not a sale price or valuation. It equates to roughly CZK 145,000 per square meter of the stated office-and-retail area.

Third Phase of the Churchill Scheme

Churchill III builds on the previous two phases and continues the transformation of the area between the main railway station and Žižkov. The development extends the Churchill scheme along Seifertova Street toward the railway viaduct.

Penta Real Estate and SUDOP Invest are the developers.

Prague Office Market Backdrop

The project is starting construction in a tight Prague office market. Vacancy stood at 5.6% in the third quarter of 2026, with approximately 222,900 square meters of available office space. Prime city-center rents reached €32 per square meter per month. Another market survey put vacancy at 5.65%, the lowest level since 2020, with city-center rents of roughly €31–€32 per square meter per month.

Prague's modern office stock totals approximately 3.95 million square meters, and no new office buildings were completed in the third quarter. About 309,000 square meters remained under construction, of which 61% was already secured by tenants. New central-business-district developments were targeting rents of approximately €32–€36 per square meter per month. Savills reported that first-half 2026 completions were 33% below the five-year average.

Leasing Activity and Tenant Behavior

Leasing figures show a market in which tenants remain active but are often not expanding. Gross take-up reached 107,000 square meters in the third quarter, while net take-up was 50,700 square meters. For the first nine months of 2026, gross take-up totaled 344,300 square meters, down 21% year over year, and net take-up fell 48% to 129,500 square meters. Lease renewals accounted for 61% of year-to-date gross take-up.

Raiffeisenbank's commitment covers roughly 16,000 of the 18,000 square meters of office space in Churchill III, leaving approximately 2,000 square meters, or about 21,500 square feet, available for other occupiers. The bank's planned 2028 move will relocate its headquarters from Pankrác to a site beside Prague's principal rail hub.

Sources

• Penta Real Estate: Penta and SUDOP start construction of Churchill III, future headquarters of Raiffeisenbank