Former Sparkasse building in Karlovy Vary was sold for CZK 100 million

The building of the reconstructed building of the former Sparkasse in the center of Karlovy Vary was sold at auction yesterday for a starting price of CZK 100 million. The building recently underwent a complete renovation for CZK 175 million, but ended up in an auction due to outstanding liabilities. The Art Nouveau building of the former bank stands on Divadelní náměstí, opposite the Vřídelní Colonnade.

Ivo Gavlas from the auction and real estate agency Gavlas is satisfied with the result of the auction. "The auctioneer now has time to pay by November 30. Otherwise, the principal of CZK 1.2 million would be forfeited," he said.

According to Gavlas, the result of the auction is a success also given the current situation in Karlovy Vary. A number of luxury hotels have remained closed and are still waiting for foreign clients who have not been going to the spa town since the beginning of the coronavirus pandemic.

The future use of the reconstructed building depends on the new owner. The building by architect Otto Stainl originally served as a bank building. But it fell into disrepair for a long time. A few years ago, a private investor began the reconstruction, which was preceded by the completion of the building in the rear wing. The whole building was repaired, restorers also worked in it. It was approved as a shopping center last March. The building is an immovable cultural monument and has been largely preserved in its authentic form, both in terms of layout and appearance.

"The building was put up for auction by liabilities to Unicredit Bank, which the owners were unable to repay during the renovation. Their total amount exceeded CZK 175 million," Gavlas summed up.

This year, the palace opposite the Vřídelní Colonnade won first place in the Construction of the Karlovy Vary Region 2021 competition and the mayor's award. The building has over 3,200 sqm, four full floors, one underground area and one used attic floor. The first three floors were to serve as a shopping gallery with several shops with direct access from both the street and the interior of the building. According to the investor's plans, flats or offices were to be developed on the two highest above-ground floors.

Source: CTK