The Czech Post (Česká pošta) has announced a tender for the main post office building at the corner of Politických vězňů and Jindřišská streets in Prague. The asking price is CZK 1.538 billion (€62.3 million) excluding VAT. The tender was preceded by an offer of the building to state institutions, which was not taken up. This is according to information from the Czech Post on its website, the ČTK news agency reports.
The tender procedure will take the form of an envelope method with the right of the capital city of Prague to match the highest bid. The branch of the main post office in Jindřišská Street will be preserved and the new owner will have to conclude a lease agreement with the post office.
The building was built between 1871 and 1890 and its first major reconstruction was between 1896 and 1899. Further major alterations took place between 1912 and 1920 to 1921. This was the baseline for the valuation of the property, which formed the basis for calculating the asking price. Between 1996 and 1999, builders carried out a major renovation of the property.
The building, which currently houses, among other things, the company's management, is being sold by the Czech Post together with the house in Moravská Street, where the price is CZK 62.39 million (€2.5 million). The Prague City Council has previously expressed interest in this property, as well as in the building in Politických vězňů.
According to ČTK, the Post Office has so far this year received over CZK 200 million (€8 million) for the sale of the unneeded property. The company intends to offer dozens of unneeded properties before the end of the year. These include post office buildings, administrative buildings, land and flats. By selling real estate, the post office is trying to stabilise its economy. Last year it ended with a loss of CZK 1.7 billion (€69 million) and expects a drop of billions of CZK this year as well. Within two years the company is to be transformed into a branch operator and a commercial parcel company.
