The seat of the Prague magistrate in Jungmannova Street was purchased by the company GLL

Prague - The Škodův Palace located on Jungmannova Street, which has been long-term leased by the Prague City Hall, has been purchased by the investment company GLL Real Estate Partners based in Munich. It was bought from the company Guyana Holding. GLL announced this today in a press release. Neither party disclosed the transaction price. There are no changes for the City Hall regarding this transaction.

"The City Hall was informed about this transaction in advance," stated GLL. The historical building in art deco style dates back to 1929. It was completely reconstructed for the Prague City Hall in 2006. The building houses several public, administrative, and operational departments. The total office space is 23,000 square meters, which roughly corresponds to half the size of Wenceslas Square.

GLL manages international assets worth about seven billion euros (approximately 180 billion crowns). Since 2004, it has been operating in Central and Eastern Europe, managing commercial properties worth 1.2 billion euros (31 billion crowns). In Prague, they also own the Diamant building on Wenceslas Square and Anděl Park B in Smíchov.

According to the spokesperson for the Prague City Hall, Vít Hofman, the transaction does not pose any complications for the capital city. "We have a lease agreement until 2028. The City Hall is currently still working on an analysis of the most advantageous variant for the office's headquarters. If we decide to purchase the building in the future, we can still contact the owner at any time," he stated.

The palace houses most of the thousands of Prague officials. The original lease agreement with Copa Retail was criticized by many politicians as extremely unfavorable for the city. The current city leadership managed to negotiate an amendment, based on which Prague will pay a lower rent and save about 800 million crowns. At the same time, the city waived the option to buy the palace after the lease expires, and thus it will have to resolve where the officials will move before the lease ends.