Czech Republic Komerční banka sales iconic Wenceslas Square office building

DLA Piper’s Prague office has advised Komerční banka on the sale of the building.

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 Škoda Palace, Adria Palace and the building on Mariánské náměstí 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 CZK 3.32 bln. 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 CZK 3.5 bln (EUR 140 mln).