Praha 6 has a draft agreement with the investor of the construction at Vítězné náměstí

Prague - The leadership of Prague 6 is nearing an agreement regarding the plots at Vítězné náměstí, where a controversial project nicknamed the Polar Bear was to be built. The land is owned by the municipality, and the Penta group, together with the Kaprain Group of financier Karel Pražák, wants to build there. Both parties are discussing a proposal for an out-of-court settlement that includes the repayment of debts to the municipality and, after the construction is completed, the purchase of the land by the investor. This was stated today by the mayor of Prague 6, Ondřej Kolář (TOP 09), at a municipal council meeting. Instead of the original office building, a smaller residential building is expected to be constructed on the parcels.

The proposed agreement also includes the option for the municipality to purchase part of the commercial space on the ground floor of the building.

The municipality leased the land in 2011 to the company Vítězné náměstí a.s., which was backed by PPF Real Estate. However, the project for a large office building sparked disputes that culminated in mutual lawsuits. In the middle of last year, the financial group Penta and the Kaprain Group of financier Karel Pražák became the new owners of Vítězné náměstí a.s. The new owners stepped back from the original plan and recently presented a project by architect Jakub Cigler's studio for a residential building with commercial spaces on the ground floor.

According to Mayor Kolář, the lawsuits that both parties filed against each other due to disputes over the land have not yet been withdrawn. The lawsuit from Prague 6 is still being addressed by the court, which has not yet set a date for the proceedings. However, a proposal for an out-of-court settlement from the investor is currently on the table. In addition to settling the company's past debts, it includes the condition that the investor will pay nine million crowns annually for the land and contractually guarantee the municipality the option to purchase part of the commercial space on the ground floor of the new building. In return, the municipality will guarantee the purchase of the land after the construction is completed. The municipality is now having an expert report prepared regarding the potential purchase of non-residential spaces.

According to the deputy mayor of Prague 6, Martin Polácha (ANO), the offer concerns three spaces with an area of about 200 square meters. "It is a very attractive ground floor with great commercial potential," he stated. He added that he will try to acquire all of them. In one of them, for example, there could be an information office for the municipality, while the rest could be leased to private individuals by the municipality.