Generali purchased the Kotva department store from PSN

Prague - The company Generali Real Estate has purchased the Kotva department store in the center of Prague from PSN. Generali announced this to ČTK today. Neither party disclosed the price, but according to information from ČTK, it is around four billion crowns. The seven-story building, with a total area of 28,000 square meters, is now set to undergo renovation.

The renovation of the building will be taken over by the development company Sekyra Group. "The aim of the collaboration with Sekyra Group is to carry out extensive renovations of Kotva to restore its prestige and status as a prime shopping destination in the historic center of Prague," Generali stated.

The company PSN, where the son of billionaire Václav Skala, Maxmilian Adam Skala, is a managing director, purchased Kotva in 2016. Based on a decision from the Ministry of Culture, the department store was declared a cultural monument last year. According to previous statements by the department store's director, Marek Vavřina, the reconstruction has approved documentation from the National Heritage Institute. The renovation also has permission from the original architects of the building, Vera and Vladimir Machonin.

According to information from ČTK from this February, the planned reconstruction will likely not begin until next year at the earliest. The building authority of Prague 1 has so far received a request only for partial adjustments, Martin Šebesta from the city hall's press department said at that time. Some tenants have also confirmed to ČTK that their stores will definitely operate at the location until the end of the year.

"We are proud to invest in this iconic property and look forward to its complete renovation, which will preserve its historical value while adopting the most modern recognized standards. This acquisition is fully in line with our strategy to invest in valuable assets in the most dynamic and fastest-growing European cities," stated Ramon Spoladore, head of the CEE & Nordics region at Generali Real Estate.

The Kotva department store was opened in 1975 as an example of a luxury Czechoslovak department store. At the time it was put into operation, Kotva was the fifth largest department store in Europe, with a sales area of 22,160 square meters, capable of serving up to 75,000 customers daily thanks to 2,000 employees. The department store is among the so-called second generation of Czech department stores. The building, shaped like interconnected hexagons, was designed by Vera Machonin and Vladimir Machonin and is considered one of the most significant Czech buildings from the first half of the 1970s.

After 1989, Kotva and other department stores had to face newly emerging modern shopping centers. The department store has long struggled with insufficient interest in leasing retail space, with some floors left with vacant sales areas.

Generali is one of the largest global providers of insurance and asset management. The Generali Group, founded in 1831, operates in 50 countries worldwide, and its total insurance premium income in 2019 reached 69.7 billion euros (1.9 trillion crowns).