Performance of REDSIDE funds in August 2022

Monthly reporting of REDSIDE funds for the period 8/2022

NOVA Real Estate

In August 2022, the appreciation of the NOVA Real Estate fund reached a value of 0.98% and thus the total appreciation since the beginning of the year is 5.11%.

In August, we completed the reconstruction of the facilities in the Panorama Office Center building. The newly created premises will serve tenants who get to work actively, either by bicycle, scooter or running. We built a dressing room with lockers and a shower room. We believe that this move will make the building even more attractive to tenants. At the same time, we contribute to reducing the negative effects on the environment caused by passive individual transport.

In the Anděl 17 building, the new tenant has taken over retail space with an area of approx. 290 m2, which will be used partly as offices, but at the same time it will also build a cafe and a studio for recording podcasts. We hope that this use will make the building attractive and help support the specific genius loci.

We respond to the energy crisis mainly with technical measures, when we audit and streamline technology settings. At the same time, we actively cooperate with tenants to optimize the supply of air, cold and heat. At the moment, we have secured energy supplies for next year, when we mostly choose contracts for spot prices with the possibility of fixing in case there is a positive market development.

Report NOVA Real Estate

NOVA Green Energy Sub-Fund 1

The appreciation of Subfund 1 for the month of August 2022 was 0.40%, and for the year 2022 it was 3.59% YTD.

In the case of Hungarian power plants, we managed to conclude an agreement with the financing bank regarding securing rates, where part of the agreement also includes the repayment of part of the senior bank loan. Thanks to this contract, the threat to the project's financial position due to rising interest rates has been significantly reduced, and at the same time, the project is not forced to enter into long-term interest rate fixes under the current disadvantageous conditions. Appropriate timing also led to the repayment of part of the loan - a weaker exchange rate of the forint against the euro.

In the Krnča biomass heating plant, Subfund 1 is taking steps for financial-operational optimization with regard to the current situation on the electricity market, but also on the biomass chip market and the wood market in general. In connection with this, Subfund 1 also convenes a general meeting of the company covering this heating plant.

Report NOVA Green Energy podfond 1

NOVA Green Energy Sub-Fund 2

The appreciation of Subfund 2 for the month of August 2022 was 0.53%, and for the year 2022 it was 1.62% YTD.

After the opening of Subfund 2 in June, the subfund is already registering the entry of the first new investors. Even their investment gives us the opportunity to work intensively on several new PV projects. We are currently working mainly on several projects in the Czech Republic - specifically, smaller (in the order of hundreds of kWp) rooftop installations and also one larger photovoltaic power plant with an output of around 7 MWp located on a brownfield that is otherwise difficult to use. There is a limited amount of such available areas in the Czech Republic, as the majority of suitable brownfields for larger PV plants are already owned by large energy players.

In the last few years, from the point of view of our investment strategy, the conditions for investments in the development of PV plants in the Czech Republic were not suitable, because the absence of operational and investment support, and at the same time low electricity prices (at a level below EUR 50/MWh) practically did not allow investing in the construction of new PV plants, and this despite gradually falling construction costs. Currently, electricity prices have stabilized at around EUR 500/MWh for the year 2023 and, even in the long term, they are well above EUR 100/MWh. With these long-term higher prices, it already makes sense to invest in new PV plants in the Czech Republic, despite the higher construction costs associated with inflation and generally higher demand for PV plants.

The production of photovoltaic power plants in the last 3 summer months was always above the expected value according to the energy audit, by approximately 10%.

Report NOVA Green Energy podfond 2