The Czech Housing Fund (Fond) has completed the largest acquisition in its history. The first investment fund on the Czech market, which offers the opportunity to invest in rental housing, bought two completely renovated apartment buildings in the wider center of Ústí nad Labem. Both properties will offer tenants a high standard of living. The total value of the transaction exceeded CZK 50 million.
The expected rental income from both apartment buildings in Ústí nad Labem amounts to at least 6% p.a., which is fully in line with the strategy of the Fund, which again this year aims to increase over 6% p.a.
“We are pleased to announce two more new acquisitions that make a significant contribution to the development of our existing portfolio while demonstrating that the regions are able to offer extremely attractive investment opportunities, both in terms of revenue and size and overall condition,” says Jakub Kořínek, co-founder of the Czech Housing Fund.
Both newly purchased apartment buildings are located in the area between the center of Ústí nad Labem and its popular residential area of Klíše. The first house has a total of 18 residential units with layouts of 1 + kk and 2 + kk and an area of 606 square meters of leasable area. The second house has a total of 17 residential units – 1 + kk and 2 + kk – and an area of 559 square meters. In total, there are 35 residential units that offer up to 1,165 square meters for rent.
“These two significant acquisitions undoubtedly bring other profitable investment projects to the Fund’s portfolio. We bought apartment buildings at a time when the regions of Northern Bohemia belonged to investment-friendly locations, which is why new acquisitions in Ústí nad Labem make long-term sense,” adds David Fogad from the Czech Housing Fund.
“The fund has free funds, which is why we are in the negotiations to buy more apartment buildings. We are aware of the current situation in the residential market, which we want to use to expand the real estate portfolio in regions where we still see great potential. We are also monitoring the offer of residential buildings in Prague, but so far we are evaluating it as unpromising for our Fund, “adds Jakub Kořínek.
The total value of real estate in the portfolio of the Czech Housing Fund thus now reaches CZK 160 million. The Fund owns a total of ten apartment buildings in Pilsen, Liberec, Ústí nad Labem, Ostrava, Znojmo, Frýdek-Místek and Mělník Vtelna. From the point of view of leasable space, the latest acquisitions make up 19 percent of the portfolio, however, up to 31.5 percent in terms of the value of all the Fund’s properties.
“Apartment buildings in Ústí nad Labem are not yet fully leased, as the extensive reconstruction was completed immediately before the acquisition. However, they should be 100 percent occupied within a month or two,” concludes Jakub Kořínek.
