State Property Office Launches Ninth Attempt to Sell Prague’s Broadway Palace

The Office for Representation of the State in Property Matters (ÚZSVM) is making yet another attempt to sell one of central Prague’s landmark properties — the Broadway Palace. The electronic auction, which begins today at 10:00 and runs for 24 hours, sets the starting price at CZK 878 million. To succeed, at least one bidder must meet or exceed this price. The current tenant retains the right to match the highest offer, should a sale be agreed.

If the auction is successful, it would mark the most valuable transaction ever completed by the ÚZSVM. The property office first acquired the building in 2016 from the former Railway Transport Administration, now known as the Railway Administration. Since no public institution expressed interest in using the property, the office has been attempting to sell it through electronic auctions since 2021. Previous rounds have drawn potential bidders, but none submitted an offer at the set price. In each case, the tenant was later offered the property at the auction’s starting price but declined.

Broadway Palace, a functionalist complex designed by architects Bohumír Kozák and Antonín Černý in the 1930s, occupies a prime location between Celetná and Na Příkopě streets near Republic Square. The structure comprises three interconnected wings and ranks among the most notable examples of interwar functionalist architecture in Prague’s historic centre. Originally built for Italian insurance companies, the building also housed apartments. It was later adapted for administrative use, and its basement cinema, opened in 1938, was considered one of the most advanced of its time. Today, the site is home to the Broadway Theatre.

The ÚZSVM’s previous record sale remains the CZK 790 million transaction for a property complex at Republic Square. However, in recent years, state auctions involving high-value real estate have repeatedly failed to attract buyers. Notable examples include unsuccessful sales of the Štiřín chateau in Central Bohemia, the Veleslavín chateau, and the National House in Vinohrady, both located in Prague.

Whether the ninth attempt to sell Broadway Palace will finally attract a buyer remains to be seen — but for the state, it represents both a significant opportunity and a continuing challenge in the management of its historic property portfolio.

Source: CTK