The Wood & Company investment group offers bonds with a stake in Prague’s commercial real estate through its fund. The maximum issue volume is CZK 300 million. The minimum investment is CZK 10,000 and has an annual yield of 5 percent with a maturity date in December 2023. The fund owns the Harfa Office Park office building and the Galerie Harfa and Centrum Kraków shopping centers with a total rental area of 77,500 sqm.
“The underlying assets are located in progressive locations and generate regular returns. The Harfa Office Park building is fully occupied and income is secured by medium-term leases. The location of both shopping centers in residential areas guarantees a stable clientele that addresses their daily basic needs,” he said. Chairman of the Board of Directors of the Fund Marek Herold. According to him, there were no significant fluctuations in income due to measures against the spread of coronavirus.
According to Wood & Company, the total value of the buildings is CZK 4.9 billion. It will issue bonds until February 25, but only up to a maximum total volume of CZK 300 million. It set this amount as 6 percent of the total value of assets.
The fund will use the money obtained from the bonds to refinance the previous issue of Harfa bonds from 2017 and for the further development of real estate. A large part of the investment will go to the modernization and expansion of the gastronomic zone in the Galerie Harfa shopping center.
“We believe that investing in the new Gurmán Harfa concept and expanding the existing Teras Harfa will increase visitor comfort, service offerings and increase time spent in the shopping center and frequency of visits. At the same time, we will invest in improving the Krakow shopping center. the pandemic will subside and the customers of our centers will start to return to their habits, “added Hrbáček.
The Wood & Company investment group focuses on providing transaction advice, advisory services in corporate financing, securities trading and asset management. The company was founded in 1991. It has offices in six European cities, including its headquarters in Prague.
Source: CTK and Wood & Co.
