České dráhy Has Sold the Last Part of the Plots of Land Near Masaryk Railway Station, the Terms Being More Favourable

14. 11. 2023 - 14:34

České dráhy has reached an agreement with the Penta Real Estate company concerning the sale of the plots of land situated between Masaryk Railway Station and the Florenc City Quarter in Prague. České dráhy has managed to negotiate better terms than those originally planned, gaining CZK 243.8 million on the transfer of the plots of land and an additional bonus dependent on a change in the land development and zoning plan. In addition, it will save over CZK 100 million in connection with the costs associated with archaeological surveys and the solution of old encumbrances, including the costs of the overbridging of the Metro system and the underground technologies thereof.

České dráhy has no use for the plots of land and buildings situated between the Masaryk Railway Station and the Florenc City Quarter, and that is why it started to deal with the idea of their sale in 2004. Within the framework of contractual arrangements, the developer had already purchased 18,730 sqm of plots of land in the locality in recent years. The current sale includes an area of 24,407 sqm. These plots of land are situated close to the arterial road and the bus station in the Florenc City Quarter.

České dráhy and the Penta Real Estate company have concluded an agreement on the sale of the plots of land on the terms which also take into account the potential betterment of the attractiveness of the plots of land after the approval of the change in the land development and zoning plan. In addition, the sale will take place earlier than originally anticipated, and České dráhy will also save, at the same time, significant costs associated with, for example, archaeological surveys or the removal of geological defects on the plots of land. As a result, the plots of land were sold on more favourable terms and conditions with a higher yield.

“I am glad that we have managed to negotiate significantly better terms and conditions with the developer for the sale of the plots of land at the Masaryk Railway Station and that at the same time one of the last brownfields which is to serve the development of the metropolis can finally disappear from the centre of the capital city. In addition to the financial amount which we will receive for them right away, the contract also provides for an additional payment based on the final form of the land development and zoning plan. At the same time, we will not pay the costs of the upgrade of the plots of land related, for example, to the local Florenc Metro System station or the archaeological survey work on the site. This will now be ensured by the developer,” says Michal Krapinec, Chairman of the Board and Director General of České dráhy.

České dráhy will use the money raised from the sale of the plots of land for further expansion and modernisation of its rolling stock and improvement of services provided to customers. “This is the priority we want to focus on. Also, for this reason we are selling unused plots of land and are not acting as a developer. This year alone, dozens of new trains are heading to the regions and next year we will put the latest ComfortJet trains on our long-distance routes. Our plan is to invest in new trains and services,” adds Director General Michal Krapinec.

Author: Petr Pošta

Release date: 14. 11. 2023

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