PPF is willing to sell the Argentine star to Prague 7 at a lower price

Prague - The PPF Real Estate company is willing to sell the building Argentinská hvězda to Prague 7 for 697 million crowns. Initially, they requested about 65 million more for the property. This follows from the offer sent to the city district. In response to a query from ČTK, Mayor Marek Ječmének (ODS) said today. Prague 7 has been looking for a building for the new city hall for several months. In addition to Argentinská hvězda, two other projects are still in play. All will be discussed at the December council meeting.
     The Supreme Administrative Court (NSS) today upheld the appeal from residents and announced a referendum regarding the selection of the city hall. It will take place on January 12 and 13. People will be able to express their opinions on the price and design of the new city hall.
     Around the selection of the city hall location, tumultuous discussions have been ongoing for several months. Local residents have drafted a petition because of it. Opposing councillors have been vocally opposing the coalition's approach. The circumstances of the selection have also been investigated by the Office for the Protection of Competition (ÚOHS). Original plans considered an investment of approximately one billion. However, the city hall decided to limit the amount to 500 million some time ago.
     In addition to the unfinished Argentinská hvězda, councillors will reconsider a possible purchase of a similar project called Mercury Tower from the company Argentinská 38. The owner initially offered the building for 845 million, but recently halved the price through a mediator. However, councillors ultimately did not accept the offer, which the opposition labeled as opportunistic.
     Both Argentinská hvězda and Mercury Tower have been unsuccessfully seeking buyers for years. According to some experts, the enormous and expensive buildings are nearly unsellable. However, PPF has decided to complete the construction regardless of the outcome of negotiations with Prague 7. "We firmly believe in serious negotiations, based on which the city hall will choose a location that meets its needs and possibilities,” said Martin Tuček, investment director of PPF Real Estate, to ČTK.
     The mayor told ČTK that the city hall has commissioned a price estimate for Mercury Tower. A bid is also expected from the company Holešovický trojúhelník, which is developing the administrative project Galerie Stromovka on Prague 7's land. All three options will be discussed at the December council meeting. "However, I do not expect a final decision. The councillors should only determine the direction in which we will proceed in the negotiations,” Ječmének stated.
     The city district's lease in the building on Captain Jaroš embankment ends in 2015. They want to move before that.