Komercni banka sold its subsidiary which owns the historic building at Vaclavske namesti 42, to the City of Prague for more than €131m.
The City of Prague was interested in the building due to its historical value and because the recent sensitive reconstruction of the building will allow the city to move in without major investment. Its strategic location in the city centre on three metro lines and the capacity of the office building also played an important role in the decision. Prague intends to move several hundred of its officials from Skoda Palace, Adria Palace and the building on Marianske namesti into the office building. The transaction also includes an agreement for the bank to remain in the building on a lease until the end of 2026.
The purchase price consists of two parts. The first amount corresponds to the value of the property of c. €131m. The second part will be determined by an expert opinion of the value of the subsidiary’s other assets and liabilities. As a result the total value of the transaction could exceed €140m.
The agreement on the sale was signed on 21 June 2024 by Bohuslav Svoboda, Mayor of Prague; Jan Juchelka, Chairman of the Board of Directors and CEO of Komercni banka; and Jitka Haubova, Member of the Board of Directors of Komercni banka. The transaction was successfully completed and settled on 1 July 2024 after the subsidiary’s financial year-end.
DLA Piper’s Prague office has advised Komercni banka on the sale.
DLA Piper partner, Michal Hink, commented "We‘re very pleased to have been part of this unique transaction, which represents the largest single asset deal of the year so far. This builds on my many years of working with Komercni banka and I would like to thank the whole team and the counterparty for their cooperation throughout the sale and for their professional approach in closing this complex transaction.”
Image provided by DLA Piper.
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