The main post office building located in Jindřišská Street in the heart of Prague, listed with a starting price of 1.538 billion crowns, failed to attract any bidders in the recent auction held on January 3, 2024. Similarly, there were no takers for the post office building in Moravská Street, Vinohrady, which was listed at a starting price of 62.4 million crowns.

Matyáš Vitík, the spokesperson for the Czech Post, announced the outcome and mentioned that interested parties had until December 20 to register for the selection procedure. Despite the lack of interest in the initial auction, Vitík stated that they are now addressing the subsequent legal steps and are optimistic about selling the complex within the current year.

The Czech Post plans to engage in negotiations with Prague City Hall, which has expressed interest in the buildings and retains the option to match the highest bid in the selection procedure. Even if a sale occurs, the iconic main post office branch is intended to be preserved, with the new owner expected to sign a lease agreement with the post office, similar to other parts of the building. The main post office building currently houses the company’s management, among other functions.

The historic building, constructed between 1871 and 1890 with subsequent significant renovations, has been a prominent landmark in Prague. The valuation of the real estate, based on its historical significance and previous renovations, influenced the starting price in the auction. The last major renovation was carried out between 1996 and 1999.

The sale of these properties is part of the Czech Post’s strategy to stabilize its operations. Faced with financial challenges, the company reported a loss of 1.7 billion crowns in 2022 and anticipates further losses for the past year. The transformation plan for the Czech Post includes becoming an operator of branches and commercial parcels within the next two years.

Article by Prague Forum