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Koh-i-noor holding Acquires Historic prague Palace for Over $1 Billion
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A landmark Art nouveau building in Prague, known as Šupichovy domy and sometimes referred to as the Ice Palace, has been sold to the Koh-i-noor holding for a sum exceeding $1 billion, marking the largest real estate transaction in the company’s history. The acquisition, finalized in early December, signals a strategic expansion of Koh-i-noor’s real estate portfolio and a commitment to maintaining Czech ownership of the iconic structure.
A New Chapter for a Prague Landmark
Located at Wenceslas Square 40, the palace will be rebranded as the Koh-i-noor Palace and will serve as the holding company’s new headquarters in the Czech capital. The move will see the gradual relocation of Koh-i-noor’s energy and engineering divisions, as well as a significant portion of its overall operations, to the centrally located property. The building is currently fully rented, ensuring immediate revenue generation.
Diversification Drives Acquisition
The purchase represents a significant diversification strategy for Koh-i-noor, according to a statement released by the company. “By acquiring such a prestigious building in the center of Prague, we not only strengthened the real estate division itself… but above all we significantly diversified our entire holding portfolio,” explained a company spokesperson. this diversification is especially significant for the long-term future of the holding, as the owner, Vlastislav Bříza, expressed concerns about the next generation’s interest in customary manufacturing. “I have two sons, and they certainly won’t want to do the kind of manufacturing that I knew, so the diversification is not bad,” Bříza stated in a recent interview.
Czech Hands preserve a National Treasure
The sale is notable for the fact that ownership of the building remains within Czech hands. The previous owner was a family fund representing the traditional Czech brands Mikov and narex Bystřice. this continuity was a key factor in the transaction, with both parties emphasizing the importance of preserving the palace’s heritage. “Czech capital has built a lot over the past 30 years,so it is indeed good that our rare and historic buildings remain in Czech hands,” noted Zdenka Klapalová of Knight Frank,who represented the seller in the deal.
Modernization plans for Czech Industry
The ample capital generated from the sale will be reinvested into the modernization and robotization of Mikov and narex Bystřice’s production facilities. “Our duty is to ensure that the iconic Rybička and narex tools will be top Czech products for the next 100 years,” said Karel Ježek, CEO of Mikov, emphasizing the commitment to maintaining the quality and legacy of these renowned Czech brands. The funds will be used to secure modern production lines,ensuring the continued competitiveness of these manufacturers.
Architectural Significance of Šupichovy domy
The property, Šupichovy domy, is a significant example of Art Nouveau architecture with notable Cubist elements.Its richly structured facade is characteristic of the architectural style prevalent at the turn of the 20th century, making it a visually distinctive landmark in Prague’s historic center. The building’s unique design contributes significantly to the cultural heritage of the city.
Koh-i-noor’s acquisition of the Koh-i-noor Palace underscores a trend of Czech entities investing
