Commercial real estate represents a typical diversification tool for any investment portfolio. Commercial properties in lucrative locations offer attractive value preservation and stable return for a conservative investor. Sub-fund 1 invests only in prime commercial properties. Its focus on quality of tenants, attractive locations with enhancement potential and real estate meeting the highest requirements for quality and technical standards are main aspects of the fund investment policy and its value proposition to investors.
The Sub-fund primarily invests in the Czech republic real estate market, potentially Central Europe.
Expectation yield around 5% p.a.
How to invest?
Investing in the Sub-fund is designed for both private 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 investors 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 subscription documents:
- Agreement on Subscription/Redemption of Unit Certificates
- Request for Issuance of Unit Certificates
- FATCA documents
- Official 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.
Why to invest into the Sub-fund?
Carefully chosen assets – investment company selects only among prime assets. Every transaction goes through multiple due diligences with focus to eliminate potential risks. Main aspects for a selection are yield, location and a possibility 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 primarily assets across the whole Czech Republic with mixture of shopping centres, 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 possibility for further development of a project.
An investor can subscribe investment shares for the actual NAV (Net Assets Value). Every investor must fulfil conditions under Section 272 ZISIF1 - qualified investor - minimal invested capital, risk awareness 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 - the Sub-fund may charge 10% exit fee. After this period passes, there is no exit fee. Fees are set-up in order to ensure the Sub-fund's optimal liquidity management.
Basic Data about Sub-fund
Basic data about NOVA Real Estate - Sub-fund 1 as of October 31, 2017
|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||47,786 thous. EUR, (as of October 31, 2017)|
|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|