Development of the area above Prague Main Railway Station – "Hlavák" Project, Red Group

Project Hlavák creates space for the modern development of a new district above the platform of Prague’s Main Railway Station and the related railway areas in the city centre. The construction phase addresses the building of the platform and the project’s connection to engineering and transport infrastructure. Construction will take place on the prepared platform in six phases over 15 years, with a total gross floor area of 345 975 m². The goal is to create a multifunctional district in the city centre, combining residential functions (both ownership and rental housing) with commercial areas, including offices, retail, a hotel, and parking capacities, in line with the RICS principle of Highest and Best Use, ensuring the most efficient and value-maximising use of the land. Public amenities such as a school and a cultural centre are also included. Project Hlavák is designed to achieve an IRR of 15.2 %, making it commercially attractive for the developer and SŽ (the Railway Administration) as a partner. This is achieved through a combination of own resources and external financing. Financing is set within the required LTV and LTC parameters, with an annual ROE of 5.04%. The legal part addressed the joint venture between the developer and SŽ, the company structure down to individual SPVs, as well as contractual documentation and risk management for the project.