The building of the former Sparkasse in K. Vary was sold for 100 million crowns

Karlovy Vary – The building of the renovated former Sparkasse in the center of Karlovy Vary was sold today at auction for a starting price of 100 million crowns. The building recently underwent a complete renovation costing 175 million crowns, but due to unpaid debts, it ended up in auction. The Art Nouveau building of the former bank is located on Theater Square, opposite the Vridlo Colonnade.

Ivo Gavlas from the auction agency is satisfied with the auction result. "The bidder now has time to pay by November 30. Otherwise, a deposit of 1.2 million crowns would be forfeited," he told ČTK today. The bidder is a Czech company.

According to Gavlas, the auction result is a success given the current situation in Karlovy Vary. Several luxury hotels have remained closed and are still waiting for foreign clientele, which has not been visiting the spa town since the beginning of the coronavirus pandemic.

The future use of the renovated building depends on the new owner. The property designed by architect Otto Stainl originally served as a bank building. However, it fell into disrepair for a long time. A private investor began renovations a few years ago, preceded by the completion of the building's rear extension. The entire property was repaired, with restorers also working on it. It was approved last March as a shopping center. The building is a registered cultural monument and has largely been preserved in its authentic form, both in terms of layout and appearance.

"The building was put up for auction due to debts to Unicredit Bank, which the owners were unable to repay even during the renovation. Their total amount exceeded 175 million crowns," summarized Gavlas. "In 2018, the international consulting company Cushman & Wakefield valued this property at 173 million crowns," he added.

The palace located opposite the Vridlo Colonnade won first place this year in the Karlovy Vary Region 2021 construction competition and received an award from the city’s mayor. The building has over 3,200 square meters of space, four full floors, one underground floor, and one usable attic floor. The first three floors were intended to serve as a shopping gallery with several stores having direct access from both the street and the interior of the building. According to the investor's plans, the two highest above-ground floors were to be developed into apartments or offices.