Sub-fund investment strategy

Commercial real estate assets are considered to be a suitable instrument for a portfolio diversification. Properties are resistant store of value generating stable yield for an investor. NOVA Real Estate - Sub-fund 1 acquires only well chosen prime assets. Considering transactions the main focus is on lease agreements period, place and buildings technical conditions. These aspects are main drivers that influence value of a property and it market liquidity in the future.

The Sub-fund primarly invests in the Czech republic real estate market, potencially Central Europe.

Expectation yield around 5% p.a.

Who is the Sub-fund designed for?

Investing in the Sub-fund is designed for both privat investors and institutional ones who are willing to accept long-term investment horizon. That is why an investor should consider his/her liquidity needs even if investing into the Sub-fund may be liquidated.

The minimum amount, under Section 272 ZISIF1 an investor can invest is 125,000 EUR, or 1,000,000 CZK (equivalent 40,000 EUR) after performing a suitability test under Section 15 ZKPT2.

There is no dividend payments distribution from created earnings however everything is reinvested back.

How to Invest

Individual Investors

The investment in the Sub-fund is exclusively intended for persons matching the definition of a qualified investor in compliance with Act No. 240/2013 Coll., on Investment Companies and Investment Funds, therefore it is necessary to invest at least 125,000 EUR or 1,000,000 CZK (equivalent 40,000 EUR) after performing a suitability test and sign a Declaration of Risk Awareness concerning this type of investment and including investment experience.

Subsequently, the investor wishing to make investments fill out the following documents with the fund manager:
+ Agreement on Subscription/Redemption of Investment Shares
+ Request for Issuance of Investment Shares
+ Declaration of Risk Awareness
+ Anti-Money Laundering (AML) Form
+ FATCA documents

Institutional Investors, asset managers and similar financial institutions

You will need to fill out a few subcription documents:

  • Agreement on Subscription/Redemption of Unit Certificates
  • Request for Issuance of Unit Certificates
  • FATCA documents
  • Offical list of authorized persons entitled to sign these documents on behalf of the institution/client
  • A copy of documents (e.g. your licence or similar document) that proves that your institution can be considered the professional investor

We will need hard copies of these documents from you by mail. To accelerate the process, please send us scan copies by e-mail while the hard copies are delivered to us.

Reasons why to invest into the Sub-fund

  • Carefully chosen assets – investmet company selects only among prime assets. Every transaction goes through multiple due diligences with focus to eliminate potencial risks. Main aspects for a selection are yield, location and a possibillity to generate additional value with active property management.

  • Inflation protection – as a market standard, lease agreements are indexed against inflation. If inflation rise, rent income rise as well.

  • Diversification – investment company selects primarly assets across the whole Czech Republic with mixture of shopping centers, retail markets and office buildings to minimize economic cycle.

  • Value drivers - assets are selected with a focus on 3 main drivers that influence their value - rent income, yield expectation and a possibillity for further development of a project.

Issuance/Redemption of Investment shares

An investor can subscribe investment shares for the actual NAV (Net Assets Value). Every investor must fulfill conditions under Section 272 ZISIF1 - qualified investor - minimal invested capital, risk awarness statement etc.

Every investor has a right to Sub-fund´s investment shares for the actual value. This type of open-ended fund structure provides an investor great variability in needs of liquidity. With investment company´s permission an investor can sell the investment shares to a third-party as well.

There is no entry fee. In case of early redemption - during 24 months since investment or during 36 month since the Sub-fund inception - the Sub-fund may charge 10% exit fee. After these periods pass there is no exit fee. Fees are set-up for the Sub-fund optimal liquidity management.

Basic Data about Sub-fund

Basic data about NOVA Real Estate - Sub-fund 1 as of 31st October 2016

Fund type Investment fund with variable registered capital
Sub-fund NOVA Real Estate – Sub-fund 1
Investment objective Real estate investments
Investment strategy The Sub-fund is aimed at the premium type of real estate – business centres, office buildings and other investment opportunities related to the real property market.
Equity capital 45,507 thous. EUR, (as of 31st October 2016
Issued security Registered investment shares
Fund Duration From 20 August 2015 for an indefinite period of time
Currency EUR
Minimum investment Minimum initial investment for every single investor of the Sub-fund amounts to EUR 125,000 or CZK 1,000,000 (equivalent 40,000 EUR) after performing a suitability test under Section 15 ZPKT2
Fund Manager REDSIDE Fund Management
Management fee 1,3 % of sub-fund’s NAV, min. 300,000 CZK/month
Performance fee 30 % of annual yield of sub-fund over 10% IRR of the fund
Depository UniCredit Bank Czech Republic and Slovakia
Auditor PricewaterhouseCoopers Audit, s.r.o.
Supervisory Authority Czech National Bank
Law and accounting system The Czech Republic
Fund taxation 5 % from profit

Information duty

Performance of Investment shares

Since April 2016, there has been first refinanced aquisition of real estate portfolio consisting from three shopping centers located in Czech Republic. The Sub-fund has started generating returns for its investors.

During August 2016, Sub-fund aquired four A class office buildings located in main office areas in Prague. The second aquisition helps portfolio diversification and mitigates econimic cycles.

There will be more aquisitions in teh future.

Real Estate portfolio

Victoria Vyšehrad

This modern property is located in one of the Prague’s most prominent office hubs – Prague 4 with a convenient connection to the public transit via metro line C and the local infrastructure. After the opening in 2008, this class A office building has a proven track record of full occupancy and high demand from tenants. Victoria was awarded with LEED GOLD certification in 2012. Design of the property provides an efficient layout of the premises and especially the upper floor with terraces, in particular, provide a magnificent panoramic view of Prague.

Leasable area: 5,633 m2
Year of construction: 2008
Aquisition date: since 2016
Location: Prague 4
Main tenants: WAG, Zimmer Czech, Conteg

Avenir E

Completed in 2007, the building represents the final addition to the established Avenir Business Park, located in Prague 5. The property offers flexible A class office accommodation rentable by up to 4 tenants per floor with both open-plan and cellular office options. The amenities include a favorite green campus park, a shopping gallery with an extensive food court and fitness facilities. The location benefits from a nearby access to the Czech highway network and the Prague international airport.

Leasable area: 6,864 m2
Year of construction: 2007
Aquisition date: since 2016
Location: Prague 5
Main tenants: Porsche, Mitsubishi

Anděl 16

The Andel 16, a modern class A project, is located in one of the most sought after office locations in Prague - Andel. Most of this seven-floor building is let to BNP Paribas and serves as a headquarters for their successful consumer finance branch – Cetelem. The Andel office hub with its infrastructure and prestige attracts international corporations mainly from IT and pharma industry. The property was designed by D3A architectural studio.

Leasable area: 6,751 m2
Year of construction: 2005
Aquisition date: since 2016
Location: Prague 5
Main tenants: BNP Paribas

Anděl 17

Andel 17 is an A class office building completed in 2004 to a very high standard, significantly above normal market levels in all areas such as technology, materials and fit-out. Thanks to these features, the property attracted strong international tenants – Pfizer and Google, who lease most of the building. The ground floor accommodates a restaurant with a terrace which contributes to the wide choice of amenities in the surrounding area. The rectangular premises are capable of offering a fully open plan, cellular offices or a combination of both. The Andel office hub with its infrastructure and prestige attracts international corporations mainly from IT and pharma industry. The property was designed by D3A architectural studio.

Leasable area: 5,414 m2
Year of construction: 2004
Aquisition date: since 2016
Location: Prague 5
Main tenants: Google, Pfizer

Orlice Park Shopping

Completed in 2002 and modernized and rebranded Orlice Park Shopping represents a well-established neighborhood shopping destination anchored by an Albert Hypermarket and popular DIY operator, Baumax. In 2014 the center underwent substantial refurbishment project improving the attractiveness of the center as a family oriented shopping destination. The asset is 99% let to a well-diversified tenants base featuring a strong customer flow reaching over two million customers per year.

Leasable area: 21,881 m2
Year of construction: 2002
Aquisition date: since 2015
Location: Hradec Králové, Czech Republic
Main tenants: Ahold, Baumax, Sportisimo, Pepco, Teta Drogerie, Bambule

Hypermarket Albert - Znojmo

Opened in 2004, Znojmo asset is fully leased to global retail operator – Ahold, where the tenant operates their Hypermarket concept with an attached gallery. The income is secured by a long-term lease agreement running until the end of 2025. The building structure is surrounded with a surface level car park with capacity of 411 spaces. The parking area is directly conveniently connected to the local infrastructure.

Leasable area: 7,694 m2
Year of construction: 2004
Aquisition date: since 2015
Location: Znojmo, Czech Republic
Main tenants: Ahold

Hypermarket Albert - Rýnovka

Opened in 2009, Rýnovka asset is fully leased to a global retail operator – Ahold, where the tenant operates a neighborhood shopping mall with their Hypermarket concept. The income is secured by a long-term lease agreement running until the end of 2027. Rýnovka offers a generous parking provision with a total capacity of 650 parking spaces.

Leasable area: 15,400 m2
Year of construction: 2009
Aquisition date: since 2015
Location: Jablonec, Czech Republic
Main tenants: Ahold