News Article Czech Republic Prague property real estate
by Property Forum | Investment

State-owned Czech Post (Česká pošta) has sold three unneeded properties in Prague's Krč district in an electronic auction. Together they will fetch almost CZK 400 million (€16.4 million). The winner must pay the price within 30 days, writes

Each of the three properties on offer was sold by the post office through its own auction. The building in Na Strži Street had the highest asking price, over CZK 310 million (€12.7 million). A built-up plot with garages of 849 sqm also went to auction with a starting price of over CZK 31 million (€1.271 million). The third property on offer was an 88 sqm plot of land for which the post office was asking at least CZK 400,000 (€1,409), according to the daily, based on the auction database on the Tender Arena website.

The post office is now sending the winner of the auction an invitation to pay the purchase price. He must pay it within 30 days of its delivery, and then it will be registered in the land register. The post office also plans to offer the main post office building in Jindřišská Street in the centre of the capital at auction. The Prague City Hall has expressed interest in the property.

Czech Post reported a loss of CZK 1.73 billion (almost €70 million) last year, and its director in charge Miroslav Štěpán said in August that he expects a billion-CZK loss this year. So it had to turn to cost-saving measures. The post office employs almost 23,000 people, had axed 924 jobs at the end of May in connection with branch closures, of which some 600 employees were given notice, and has closed three hundred branches since July this year.