Realia Fund Sicav just bought another two retail parks in a move that’s expanded its assets under management to over CZK 2.2 billion. Located in Plzeň and Frýdek-Místek, the funds 17th and 18th retail parks cost it CZK 180 million. The fund’s conservative approach means it targets assets secured by long-term leases and predictable and fixed interest rates for its financing.
“These acquisitions allow us to generate regular rental income immediately upon their inclusion in the fund,” said Tomáš Oplíštil, Commercial Director of Realia Group. “Thanks to the fixed interest rate strategy, we were not under pressure from rising loan costs in the past two years, ensuring the fund’s performance even during periods of economic uncertainty.” The park in Plzeň has six stores, including brands such as DM and Dr. Max. The center in Frýdek-Místek features KiK, Sportisimo, Planeo Eletro and Dráčik stores.
Last year, Oplíštil told ThePrime Realia that once its delivers a 6% return on Czech income (5% in Euro), all additional profits are split between fund investors, owner and managers. “That means we’re highly motivated — not just to be big but that everything works properly in order to drive profits. There’s no direct management fee like the way the most of the funds do it,” he said.
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