Prague 6 selects buyers for land worth hundreds of millions of crowns

Prague - The company SNEO, owned by Prague 6, is completing the first round of the competition for the sale of land on Na Dračkách Street, where the new owner is expected to build a residential project. This was communicated to ČTK by the chairman of the board of directors, Tomáš Jílek. Three offers will advance to the second round, and the results of the competition should be known by the end of next week. According to the decision of the city council, Prague 6 requires at least 250 million crowns for the land. The municipal district initially wanted to build on the parcels, but has since withdrawn from this intention.

The area where the residential project is to be built is a former brownfield on the border between Ořechovka and Veleslavín. According to Jílek, the evaluation of the offers submitted in the first round took place on Thursday, both by the board of the SNEO company and by the representative commission appointed by the city council. "Next week we will send a proposal to the city council on which three offers should advance to the second round, which is expected to be closed by the end of next week," Jílek told ČTK. After that, the selection must be confirmed by the councilors.

In the first round of selection, 70 percent of the decision was based on price. The remaining 30 percent of the evaluation of offers consisted of the speed of construction, the offer of a public investment project in the territory of Prague 6, and the respect for the architectural design that the municipal district initially wanted to build on the parcels. In the second round, the three advancing interested parties will be able to bid and counter each other until one offers the highest price.

Jílek declined to comment on the details of the submitted offers until a final decision is made. He only stated that, given the current developments, it appears that the result could be advantageous for the municipal district.

Initially, the municipal district planned to build the apartments itself. However, following an analysis by the consulting company Deloitte, it ultimately decided to sell the area along with the project in the form of a so-called share deal. The land and the project will pass to a subsidiary of the SNEO company, which will then sell it to a private developer. The sale of the land was approved by the city councilors at the December council meeting.

The Greens from Prague 6 criticized the process, arguing that it is unnecessary to sell the parcels when the municipal district already has a prepared project with a building permit. The Greens would prefer that SNEO build the apartments and that the municipal district then offers them to residents as starter apartments for young families or for preferred professions such as teachers or police officers.

Before the 2014 elections, the city council announced a tender worth 1.1 billion for the construction of apartments in the area. It was subsequently canceled, stating that the next political representation would decide on the further course of action.