Project name
Residential Fund Prague (FULLY FUNDED)
Location
Zilinska Street, Prague, Czech Republic
Pod Dráhou Street, Prague, Czech Republic
Gotthardská, Prague, Czech Republic
Initiator
REALIANCE Europe B.V.
Local partner
Category
Two new developments of a total of 111 apartments and an existing city villa with 10 apartments
Projected investment term
36 months, completion Q2 2022
Exit strategy
Sale to end investor(s) and/ or through refinancing
Equity Residential fund Prague LP (Dutch CV)
€ 4,500,000
Equity local partner
€ 3,400,276
Structure
Issue of participations in Residential Fund Prague LP, which acquires a participation in three Czech project companies
Participation
From 4 participations of € 25,000 (minimum of € 100,000)
Projected total return
46.4% after 36 months
Projected return (ROI)
15.5 % per year
Unique selling points
Prague is an economically attractive city for a real estate investment because of its strong housing market, good demographic outlook and the lowest unemployment rate in Europe.
Demographic growth, structurally high employment and sharply rising costs for owner-occupied apartments benefit the rental apartment market in Prague, which resulted in a rent increase of more than 4% last year.
The demand for apartments is high, with the rental market being a relatively young phenomenon.
Balanced mix of three projects at different locations and in different real estate segments, so that risks are spread.
The project locations are conveniently located for employment centres, in transformation areas directly on the river and in the beautiful embassy district.
Significant risk mitigation due to the advanced stage of pre-development. The site plan has already been approved.
Subordination of local partner’s equity in the two development projects.
As a developer, the local partner is very experienced with Prague as its home market.
GEONE participates in the project partnership for € 3.4 million (44%).