ÚZSVM to hold eighth auction for Prague’s Broadway Palace in January

The Office for State Representation in Property Matters (ÚZSVM) will attempt once again to sell Prague’s Broadway Palace in an electronic auction this January. This marks the eighth attempt to auction the historic property, with the starting price now reduced by CZK 13 million to CZK 878 million, down from the previous auction in mid-September. The office announced the news in a press release, noting that while previous auctions had interested bidders who paid the required deposit, no bids were ultimately placed.

The decision to hold another auction comes after the current tenant failed to exercise its right of first refusal during previous rounds. The tenant will have another opportunity to match the highest bid in this auction.

The auction will run from January 22 to January 23, 2024. Participants must place a minimum bid equal to the starting price, with subsequent bids increasing by at least CZK 50,000. To qualify, interested bidders must pay a CZK 20 million deposit no later than one day before the auction begins.

Broadway Palace, a functionalist architectural gem from the 1930s, is located between Celetná and Na Příkopě streets, near Republic Square in central Prague. Designed by architects Bohumír Kozák and Antonín Černý, the complex consists of three interconnected buildings.

Originally constructed for Italian insurance companies, part of the property also housed apartments. In 1938, it gained a state-of-the-art cinema, now operated as the Broadway Theatre. The building later served administrative functions after modifications in the 1980s. Despite its prime location and architectural significance, the property has struggled to find a buyer.

ÚZSVM has been trying to sell the Broadway Palace since September 2021, offering it first to state institutions, none of which expressed interest. If sold at the current auction, the property could achieve the office’s highest sale to date, surpassing the CZK 790 million earned from a previous sale of premises at Republic Square.

Alongside the Broadway Palace, the ÚZSVM will also auction Štiřín Castle in Central Bohemia. Despite its historic value, the castle has similarly faced difficulties in finding a buyer. The asking price has been reduced from an initial CZK 3.3 billion to the current CZK 1.445 billion after three failed auction rounds.

Both auctions reflect the challenges of selling high-value, historically significant properties in today’s market, even as the government seeks to divest such assets.