The City of Prague has acquired an historic bank premises for CZK 3.5 bn (€143 mln) from Komercní banka, with a view to converting the commercial building into its future City Hall.
Under the plans, the property at Václavské námestí 42, on Wenceslas Square, will become the workplace of hundreds of city employees by 2028.
The asset was divested via the sale of Komercní banka subsidiary VN 42. In March 2024, Knight Frank invited interested parties to submit final bids for the purchase of the property.
The mayor of Prague, Bohuslav Svoboda, said: 'The City of Prague is acquiring a beautiful and functional building that will serve not only for the administration of public affairs but, more importantly, for all the citizens of Prague.
'This acquisition has financial benefits, as it will eliminate the need to rent Škoda's palace at a high cost. The larger capacity will also allow for the consolidation of various city agendas under one roof.
'Additionally, its central location, close to three metro lines, is highly advantageous. I believe all the people of Prague who visit will appreciate this. I thank everyone who contributed to the successful completion of this transaction.'
The transaction includes an agreement that Komercní banka will remain in the building as a tenant until 31 December 2026. The lease of Škoda Palace on Jungmannova Street, Prague's current City Hall, ends on 31 March, 2028.
