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
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|
|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|