After one decade of legal affairs that impeded the opening of the beautifully renovated Rác Bath and the pertaining superior hotel nearby, now the proprietor company decided to sell the properties at public auction. The starting price exceeds EUR 13.6 million.
The history of the iconic Turkish bath dates back to the 16th century, when its oldest part, the Turkish cupola was built in 1572. Later on, the imperial pools and shower corridors were constructed during the age of the Austro-Hungarian Monarchy. Since then – thanks to periodic renovations – the spa has preserved its original authenticity and style. Few may know that Rác Thermal Bath is also listed as a UNESCO World Heritage Site; though, its inner beauty has not been admired by tourists for a long time. However, a final decision has been made on the future of Budapest’s iconic spa and the superior hotel alongside.
It makes it even more complicated that the land under the buildings is the property of the capital, and the Budapest Thermal Bath Plc holds the water rights necessary for the spa’s operation (BGYH). As a result, the spa, the state, the capital’s local government and BGYH also have the right of pre-emption. So the final race for the real estates begins.
As Népszava reports, for the renovation of the spa, the municipality of the Hungarian capital established Rác Nosztalgia Ltd. in 2002. The capital took the land under the buildings to the joint business, while the associated Rác Beruházó Ltd. undertook the renovation and the construction of the 67-room hotel. The construction of the 16,000-square-foot complex began in 2005, and the inauguration was scheduled for May 2010.
Even though, the renovation of the patinated spa and the construction of the new, superior hotel cost a total of EUR 21.7 million and was already licensed in the autumn of 2010,
Now, the National Reorganizational Nonprofit Ltd. – entrusted with the liquidation of the owning company, Rác Nosztalgia Ltd. – has decided to sell the renovated Turkish Bath and the 67-room hotel at public auction.
The electronic bidding starts on 26th March and runs until 12th April.
The starting price and the minimum amount to be paid for the real estate is slightly more than EUR 13.6 million; the amount of the advance payment to participate in the auction is EUR 692,000.
As the Hungarian news portal Turizmus.com reports, the capital has repeatedly stated that it intends to acquire ownership of the Rác Bath and the hotel building in the liquidation proceedings. In the current financial situation, the capital’s municipality will hardly have sufficient financial resources for the renovation. The big question is how far it will go in bidding. It seems – that after years of useless negotiations – the spa, which was beautifully renovated by 2011, and the newly built hotel will have to be redone again, the cost of which is estimated at millions of EUR.
Source: nepszava.hu; turizmus.com