The Zbrojovka Brno complex was auctioned by J&T for a record 707 million

Brno - The site of the bankrupt Zbrojovka Brno was acquired in today’s auction by the Czech-Slovak investment group J&T for a record 707 million crowns. They outbid another ten interested parties. The auction has thus become the largest in Czech history. The price of the twenty-two-hectare land with several dozen buildings is estimated at 325 million, the starting price was set at 352 million. J&T must pay the amount by the end of April; bankruptcy trustee Martin Kopčil does not wish to comment on the auction until then. If J&T pays, all creditors from the bankruptcy should be satisfied. Their claims amount to 480 million.
    Zbrojovka went into bankruptcy three and a half years ago and has not produced anything since last year. A representative of J&T stated that the holding has certain plans for the site but did not want to be more specific. The production of weapons will most likely not be resumed. J&T is one of the largest financial groups operating in the Czech Republic. It controls Pražská Energetika, the football club Sparta Prague, and ČKD Blansko Engineering Works. Recently, it announced plans to build a commercial center for 2.5 billion in Prague's Karlín instead of the dilapidated buildings of the Prague Engineering Works. Whether it has similar plans for the Zbrojovka land, spokesperson Petr Málek did not comment.
    The current zoning plan considers the use of the site for industrial production. However, the Brno city hall is already preparing changes that would allow for the construction of offices, apartments, or a park. The change, however, will not be approved for at least a year and a half, added Dana Wendscheová, head of the zoning planning department.
    The site was auctioned as a whole. The oldest building is from 1870, and most of the structures date back to the first half of the 20th century. However, they have been without maintenance for several years and need to remove environmental burdens. Therefore, it is necessary to invest at least hundreds of millions of crowns into the repairs, says real estate agent Marcel Prát. "It is definitely a favorable investment. The land is close to the center with good transport accessibility. Moreover, it is so large that a small city could grow within it," he stated.
    According to economist Marek Hatlapatka, J&T is one of the few investors in the Czech market that could afford a price over 700 million. "One of the options for utilization is also the reconstruction and subsequent rental of individual parts, which would correspond to the investment profile of the group," he believes. Investors have already repeatedly shown interest in parts of the site, said Irena Krčilová from the South Moravian Regional Development Agency. According to her, demand for smaller plots could be high. Currently, there are about 200 hectares of brownfields in Brno, i.e., abandoned industrial sites. In addition to Zbrojovka, there is also an unused part of the Zetor company site and barracks in Slatina and on Šumavská street.
    The auction of Zbrojovka lasted about 30 minutes. After the amount of 600 million, only two interested parties continued to bid, mostly by one or five million. Auctioneer Josef Machů stated that the auction company Prokonzulta had anticipated a final price of around half a billion. The previous highest final price was achieved by the auction of the property of the Ostrava company Unikov, exceeding 465 million.
    At Zbrojovka, part of the machinery and weapons has already been successfully sold, with their total value reaching tens of millions. Some of the equipment now belongs to Brno Rifles from the group around the Uherský Brod company Česká Zbrojovka. They employed 29 former Zbrojovka workers and began producing again in a rented part of the Brno plant last autumn. However, they only participated in the auction as guests.
    Kopčil is the third trustee at Zbrojovka. He succeeded Ilona Strmisková, who faces accusations of wanting to sell weapons from the company's bankruptcy below market price. The day before the auction, court proceedings with her were supposed to continue, but were ultimately postponed.