The Municipality of Prague has succeeded in an auction for a plot of land the in Ruzyně cadastral unit (parc. No. 2178/17), on which a pavement owned by the Municipality is located. Considering it is often difficult for the Municipality to acquire built-up plots of land, this represents another success of the Asset Management Department.

“We are very happy with the outcome of the auction that took place early in February. The effort was based on our new asset management strategy. There is a pavement owned by the Municipality of Prague on the plot and our aim is to protect the city’s property. The pavement is used by the general public but until now, the land underneath was not owned by the city, which turned out to be a serious complication. That is why we presented a proposal to the Prague City Council to take part in the auction and we have eventually succeeded,” explains Ing. Jan Rak, Head of the Asset Management Department.

Prague has faced difficulties when trying to acquire built-up land because in the past, owners had a large room for speculations and tended to ask disproportionately higher prices for their estates than independent valuations or would not sell at any price and would request a lease agreement instead. However, a lease agreement is not a favourable legal arrangement for Prague and does not provide an appropriate legal solution. That is why it is important for Prague to take part in any auction for a plot of land with a local or special-purpose road because the Asset Management Department registers multiple litigations with owners of such land.