Notification on bidding aimed at finding purchase candidates and selecting a suitable purchaser to buy assets rated as redundant to the state administration

CzechRepublic – Ministry of Defense,

Redundant Assets Management Agency,

Address: nám. Svobody 471/4, 160 01 Prague 6, DirectorIng. Ľuboš HAJDUK,

(hereinafter referred to as“advertiser“)

in accordance withAct 219/2000 Coll., § 22 par 1.,On Properties of the Czech Republic and its Acting in Legal Relations, as subsequently amended, and in compliance with Part 5 of the Ministry of Finance Directive 62/2001 Coll., announces that under terms and conditions as stated below

is launching on June 11, 2014 bidding process (BP) on the below stated article of property registered under specified variable symbol (VS):

Sale Article:

18140401 (VS) Praha – kasárna J. Žižky zTrocnova, k.ú.Karlín, obec Praha, okres Hlavní město Praha(J. Žižka z Trocnova Camp, city quarter: Karlín, Prague, district: the CapitalCity of Prague).

The premises “Kasárna J. Žižky zTrocnova”are located in Prague 8 – Karlín in the vicinity of Florenc Bus Station, near Florenc subway and other city transport stops.It is a unique enclosed area situated among streets Vítkova, Křížíkova and Prvního pluku. The inner yard (land ref. no. 97/3) covers approximately 1 ha and can be used as a parking lot. The main five-floored building no. 20 (land ref. no. 97/4) with basement is recorded on the list of cultural monuments.In the unnumbered building (land ref. no. 97/5) are garages, a concert hall and rooms after the former rehabilitation center with a pool. The unnumbered building on land 97/6 is registered as a car wash. The premises include its own transformer station and are connected to all utility networks (gas, electricity, water, sewage). The whole area is situated in the cultural monument protective zone. In accordance with the hitherto effective Capital City of Prague Municipal Plan, the premises are still registered as lands for accommodating structures and facilities for security and armed forces.After completing the purchase and transfer of ownership, a new owner is entitled to request an amendment of the aforementioned Municipal Plan. The main building, originally titled “Ferdinandova kasárna” (Ferdinand´s Camp), was constructed in 1844 – 1845. In the 19th century the camp accommodated, for example, 3rd Pioneer Battalion, 8th Sapper Battalion and 91st Infantry Regiment. From 1920 to 1945, the building renamed “Kasárna Jana Žižky z Trocnova” was the home of the 5th Combat Engineer Regiment. During the 2nd half of the 20th century the premises housed various units of Prague Garrison, e.g. Military Regional Command. Technical and engineering conditions of the buildings are adequate to their age. The area was afflicted by floods in 2002.

Lowest purchase price for the whole sale article: 620200 000,-CZK

Security deposit: 100000,- CZK

Visit dates: 18/6, 20/6, 23/6, 24/6 and 26/6, 2014 always from 09.00 hrs.The meeting point is at the entrance on Křižíkova Street.

PART A

BIDDING TERMS AND CONDITIONS:

  1. Delivery of application:

Each applicant shall deliver the application in a sealed envelope with the following wording:

“PŘIHLÁŠKA” (application)– … you are to unmistakably fill in the title of sale article and variable symbol (each article shall include an introductory text in bolt) … - “NEOTVÍRAT“(do not open)

to this address:Ministerstvo obrany, Agentura pro nakládání snepotřebným majetkem, nám. Svobody 471/4, 160 01 Praha 6, either by mail service or in person.

Applications sent by mail must be dispatched (submitted to a licensed mail service) no later than July 16, 2014and delivered to theadvertiser no later than July 24, 2014.

Applications delivered in person will be accepted only on July17, 2014 from 10.00 till 11.00 hrs.,
in “Information” room, at the entrance to the building of Ministry of Defense, nám. Svobody 471/4, Prague 6.

Failure to meet the aforementioned requirements will disqualify the application from further rating procedures.

  1. Applications must be written in Czech and contain the following:

a)Unmistakable identification of the purchase article(at least an appropriate title and VS);

b)Unmistakable identification of the applicant

–physical person is to fill out first and last name, birth certificate number, permanent address; if married, the applicant is also to add personal data of their husband/wife if there are no reasons for transfer into an individual ownership outside the framework of joint marital property;

–legal entity is to provide identification data on the company or its title, seat and identification number, on registration into the pertinent public register including the file identifier, on the person authorized to represent the legal entity, and on the method of signing documents. These data shall be proven by a copy of the extract from the Register of Companies or any other register, or by a copy of the foundation charter to prove the establishment of the legal entity, or through reference to a special law on which basis the legal entity was established;

c)The sum of offered purchase price for the entire purchase article in Czech crowns written both in digits and words (in case of discrepancies the sum in wording is valid, or only one of the specified methods) – the offered purchase price may not be lower than the lowest purchase price allotted to the specified purchase article;

d)Declaration that the applicant has no debts to the state and is not a subject to insolvency or distrainment process;

e)Declaration that the applicant agrees with the terms and conditions of the announced bidding process, and in doing so, they bind themselves to carry out the obligations as stated in the Bidding Terms and Conditions, Part C;

f)Declaration that the applicant, prior to submitting the application, became acquainted with the pertinent draft of the purchase contract (Note: at in writing at the relevant regional office ANNM);

g)Declaration that the applicantagrees with processing of their personal data (Note: solely for this bidding process and subsequent steps pertaining to the preparation, closing, implementation and archiving of the purchase contract and pertinent documents);

h)Declaration that the applicant, if the purchase article is transferred into their ownership, will pay the real-estate transfer tax in compliance with the Senate legal measure No. 340/2013 Coll.;

i)Signature of the applicant (Note: it means signature given by the person/persons authorized for legal acts).

  1. Making security deposit as specified for the relevant purchase article:

The security deposit must be made into the MoD deposit account No. 2030-404881/0710atČeská národní banka (Czech National Bank) (hereinafter referred to as “account“) no later than July 18, 2014,i.e. unmistakably and with inclusion of both VS (the number stated at the specific purchase article) and specific symbol (birth certificate number for a physical person or identification number for a legal entity). Making deposit means putting down the specified sum to the aforementioned MoD deposit account. Failure to make the security deposit into the aforementioned account within the deadline or in the amount as stated, or to fill out properly both symbols, so making the deposit by the applicant becomes unidentifiable even from other submitted documents, will be interpreted that the deposit is not made.

PART B

CRITERION FOR SELECTING A SUITABLE BUYER:

Out of those applicants who will comply with all the terms and conditions, as stated above, the suitable buyer will be selected on the basis of only one criterion – i.e. the highest bid for the whole purchase article. A suitable buyer will be selected even if only one person/entity is applied.

PART C

FURTHER BIDDING TERMS AND CONDITIONS AND INFORMATION:

  1. Should two or more applicants offer the same highest purchase price, these applicants will undergo another narrower bidding process based on a further highest bid.
  2. The security deposit made by a suitable buyer is de facto the advance payment of the purchase price and will be used for paying the first of two parts of the purchase price. The second part of the purchase price will be due after the purchase contract comes in force (in specific cases in accordance with Art. IV of the Purchase Contract – predominantly after the purchase contract is approved by the relevant ministry), always prior to submitting the request for permission to entry the proprietary right into the Land Registry.
  3. The advertiser will release the security deposit and send it back to the account from which the sum was deposited belonging to the applicant who was not selected as a suitable buyer within 14 days at the latest, after the date when the applicant was notified about not being selected. The sum will be returned to the applicant at the same amount as was put down to the MoD deposit account since the deposits on the MoD account are interest-free.
  4. Validity of the contract that shall be closed based on this bidding process is primarily subject to the approval by the relevant ministry (Ministry of Finance and Ministry of Culture in compliance with Act 219/2000 Coll, § 22 par. 3 and 4).
  5. The Czech Republic - Ministry of Defense hands over all the items of the property in their status quo (as they are) in accordance with Civil Code, Law 89/2012 Coll. § 1918.
  6. Any further information on the purchase article is available at the address: Regionální pracoviště ANNM Praha, Hradební 12, 111 21 Praha 1, following prior phone request at number 973 206331and702003 626.
  7. The advertiser will notify each applicant in writing no later than August 1, 2014, in reference to the date of sending, whether they are or are not selected as a suitable buyer. Within 45 days from the date when the notification was delivered the selected suitable buyer is obliged to deliver to the advertiser the documents proving that the suitable buyer has no debts to the state, i.e. primarily:

–Confirmation by the Financial Office that their records show no back taxes;

–Confirmation by the Czech Social Security Administration that no arrears or any unpaid debt on insurance, social security penalty payment and employment dues are recorded;

–Confirmation by the Health Insurance Office that no arrears or any unpaid debt on insurance and public health insurance penalty payment are recorded.

  1. Should the suitable buyer fail to deliver to the advertiser the confirmations as stated in the previous paragraph, or should they fail to deliver to the advertiser the specified quantity of properly signed copies of the purchase contract within 1 month following the date of being delivered to them by the advertiser, they are penalized with the amount of the security deposit they made, which will not be returned but forfeited to the advertiser. In these cases the advertiser is no longer obliged by the bid of the suitable buyer and is entitled to reopen the bidding process to address other bidders.
  2. In case that the conditions and circumstances, upon which the advertiser decided to transfer ownership of the purchase article, or for any other significant reasons,are changed, the advertiser is entitled, pursuant to Decree 62/2001 Coll. § 23 par. 1, to terminate the bidding process. All the applicants are to be immediately notified about this fact. The same reasons also justify termination of the purchase contract closing process.
  3. The applicants are not entitled to reimbursement for expenses related to their participation in this bidding process and subsequent closing of the purchase contract.
  4. The advertiser declares that all personal data provided by the applicants will be used solely within the scope that is necessary for closing the contract pursuant to Act 101/2000 Coll., On Personal Data Protection and Amendment of Some Acts, as subsequently amended.
  5. The applicants are cognizant of the fact that all rights, duties and entitlements resulting from the terms and conditions of this bidding process, or those unregulated by these terms and conditions, are governed by Act 219/2000 Coll., On Properties of the Czech Republic and its Acting in Legal Relations, as subsequently amended, and by Part 5 of the Ministry of Finance Directive 62/2001 Coll., and subsidiarily by Civil Code, Law 89/2012 Coll.
  6. For the purpose of smooth communication the applicants are recommended to include their e-mail address and phone number.

This information, including photos and draft of the contract, is available at .