“For projects, we are in the advanced stage of preparation through their implementation, long-term holding, administration and evaluation to properly timed sales. We will prepare, adapt and build real estate in this way so that we can maximize investor return over a long period of time, ”comments Zdeněk Tůma, co-founder and Chairman of the Supervisory Board of IRQ Funds, who is primarily responsible for the fund’s overall strategy, investor relations and financial resources management. IRQ funds have three classes of shares for qualified investors with regard to the amount invested – the entry fee, hurdle rate and management fee differ in each class accordingly. The lowest invested amount is one million crowns.
The first sub-fund of IRQ Funds, called IRQ Residential Rental, focuses on rental housing, whose popularity in the Czech Republic is still growing. As part of building a portfolio of rental housing, the sub-fund wants to focus on sufficiently large projects to be able to work with the project and its individual parts during preparation and implementation and to manage a gradual and significantly more profitable exit from the investment. The IRQ Residential Rental subfund enters the relevant project already in an advanced development phase. It expects an investment horizon of 5 or more years and aims at a return of over 8% pa. Its founders are currently negotiating with larger investors, from whom they have a preliminary promise of investments in the order of hundreds of millions of crowns, which would allow the sub-fund to realize 2- 3 transactions. In the next 3-4 years, the sub-fund plans to implement 5-10 projects “The main measure of our success is the security of the investment in combination with a high internal rate of return (IRR). We trust our business model so much that we do not claim any profit shares until we secure targeted returns for our investors. Therefore, they only share their profits with us when we have the floor, ”adds Martin Pětivoký, co-founder and member of the Supervisory Board of IRQ Funds, who is responsible for fund management and investor relations.
The guarantee of the quality of IRQ funds is cooperation with renowned partners: the administrator and statutory body is AMISTA investment company, the auditor KPMG, the depositary ČSOB and the appraiser Kreston A&CE. IRQ funds plan to work with major development companies. An example is the pilot partnership with the REALISM group, whose owner Martin Hubinger is also one of the founders of IRQ Funds. However, the fund is also open to cooperation with other development companies. Realized constructions of the REALISM group (Truhlárna, Barrandovská zahrada, Sakura) are regularly appreciated by the Czech and foreign professional public and the company has thus gained a strong position among respected domestic residential developers.
“The REALISM Group provides services in the area of preparation, construction and asset management to the projects in which IRQ will enter, under the supervision of the fund and in its cooperation. For the IRQ Residential Rental sub-fund, such a partnership is a way to participate in the preparation of own realizations from the beginning and to minimize risks and costs while achieving significantly above-standard returns and appreciation of investment funds. It then brings a more conservative and stable part of business opportunities to the partner developer. It is this transparent vertical integration and calculated revenue reduction on the part of the developer that is the key to success and stability, “concludes co-founder and member of the Supervisory Board of IRQ Funds and owner of the REALISM Group Martin Hubinger. transactions and the valuation of projects owned by the fund.
