The auction of the palace in the heart of Prague ended in failure. The minimum price was a billion
The real estate auction in the Czech Republic with the historically highest minimum price, namely 1.05 billion crowns, did not bring the winner. One bidder applied for the electronic auction of the Broadway Palace in the historical center of Prague and submitted the required deposit within the set deadline, no bid was made during the auction.
Therefore, in accordance with the concluded contract, which it took over together with the building from the then Railway Infrastructure Administration, the Office for Representation of the State in Property Matters (ÚZSVM) will contact the existing tenant to submit an offer in the amount of the minimum announced price.
The existing tenant can exercise his pre-emptive right within three months of receiving the invitations. If he does not show interest in the Broadway Palace, the ÚZSVM will announce another round of the electronic auction with the same minimum price as in the first round of the tender.
The starting price for the Broadway Palace in the historical center of Prague was 1.05 billion crowns. According to ÚZSVM, this is the most expensive sale in the history of the office.
The auction started on Tuesday morning and started with the payment of a deposit of 20 million crowns, which was paid by one of the bidders. The minimum price increase was then set at 200,000 crowns.
“This is a unique investment opportunity. From the first day of the publication of this offer, we noticed interest from foreign investors. I believe that through an electronic auction we will be able to find a new owner who will find meaningful use for this exceptional complex, “said Kateřina Arajmu, CEO of ÚZSVM, after the start of the public auction.
ÚZSVM took over the Broadway Palace complex in 2016 from the then State Railway and Transport Administration (now the Railway Administration). According to the law, the office first offered the palace to other state institutions, but none of them showed interest in it. Therefore, the Office approached the variant of electronic auction.
Office for Representation of the State in Property Matters
The Office was established in 2002 and, in addition to the administration of state property, represents the Czechia instead of other organizational units of the state in legal disputes concerning state property.
The main source of income for the office is the sale and lease of land, buildings and structures, as well as property that fell to the state from the so-called deaths of the dead without heirs.
Last year, the Office’s revenues fell by six percent year on year to 1.39 billion crowns.
The most successful year for ÚZSVM was 2015, when it received CZK 1.93 million from sales.
In February 2018, the Office launched an electronic auction system, in which, in mid-March this year, it held 11,742 electronic auctions, of which the state received 960 million crowns.
“This sale is completely unique, even in terms of the amount announced. This is especially the sale with the highest minimum price in the entire history of ÚZSVM, “previously the director of the office.
According to the state office, he received the highest amount so far, namely 790 million crowns, from the sale of the complex on Republic Square in Prague. Another of the highest amounts was brought by the auction of the Prague complex U půjčovny, which was sold for 355.1 million crowns after 100 bids.
