News Article Czech Republic investment Komerční Banka office Prague
by Property Forum | Investment

The city of Prague is buying the company VN 42, owning an office building on the corner of Wenceslas Square and Štěpánské Street, from Komerční Banka, reports The municipality is planning to move employees from the Škoda Palace in Jungmannova Street, leased until the end of March 2028.

According to the approved document, the purchase price of approximately CZK 3.5 billion (€142 million), consists of two parts. The value of the building is CZK 3.32 billion (€134.5 million), and the rest of the amount consists of other assets of the purchased company. The transaction is to be completed on July 1 2024. According to the document, the bank will remain in the building until the end of 2026.

On March 12 2024, KB called for bids to be submitted for the purchase of the building, or the company through which it is owned. Several companies applied, including the capital city, whose council approved the submission of an offer of up to 3.65 billion crowns in March. Subsequently, the bank's management decided that it would deal only with the city of Prague.

The five-floor neoclassical house on the corner of Wenceslas Square and Štěpánská Square, built in the 1920s, suits the municipality in terms of capacity, which is about a third larger than that of the Škoda Palace. The house has been listed since 1958.