Komerční banka will negotiate with Prague for the building on Wenceslas Square

Komerční banka (KB) will negotiate the sale of the building on Wenceslas Square in Prague 1 exclusively with the capital city. The reason for this is a favourable offer for the bank from the city. KB also published the decision of its board of directors on its website. City councillors last week approved a resolution by which the city offered CZK 3.65 billion to the bank. The municipality plans to move officials to the building from the Škodovo Palace in Jungmannova Street, where it is leased until 2028. The negotiations are expected to be concluded in the second quarter of this year.

"I am very happy that after long negotiations we have managed to find suitable premises for the functioning of the municipality itself and the people working for the city. The house on Wenceslas Square represents a great solution to a difficult situation - namely the expiring lease agreement with the owner of the so-called Škoda Palace. I believe that the purchase of the property into the hands of the city is very beneficial in the long run, and Prague will find its final home," said Kovářík.

On 12 March this year, KB invited bids for the purchase from its company VN42, which owns the building. It has received several interested parties. "After evaluating the bids received, KB's board of directors decided to start negotiations on the terms of a possible future sale of VN 42 with the best bidder, the City of Prague," the bank's announcement said. According to the document, the bank will seek to close the deal in the second quarter of this year.

The house at the corner of Wenceslas Square and Stepanska Street suits the municipality in terms of capacity, which is roughly one-third larger than the Škodovo Palace. The location in the city centre at the intersection of all three metro lines is also suitable. The municipality's officials are now based in several locations. A large number of them, roughly 1,200 out of 2,200, are based in the Skoda Palace, where the city's lease expires in 2028. Officials moved there under Mayor Pavel Bem (ODS), and the terms and length of the lease were then adjusted under Mayor Adriana Krnáčová (ANO).

In the last year, the Prague administration considered buying the building of the main post office in Jindřišská Street, but did not reach an agreement with the Czech Post. In the past, there was also a plan to build a new building at Na Knížecí, but this too was abandoned. The city administration is housed in the New Town Hall on Mariánské náměstí.

Source: CTK