The billionaire owner of CPI Property Group (CPIPG) Radovan Vitek plans to launch what he expects to become the country’s largest rental housing investment fund. He no doubt looked at the options on the SICAV side of the real estate fund universe. In the end, the company is banking on the number of Czechs who want to invest in residential assets but lack the millions in ready cash to do so. For CPIPG, it’s the latest in a series of moves set to raise capital while reducing its LTV to more acceptable levels.
The fund, scheduled to launch in summer 2025, will eventually encompass over 11,000 apartments across 15 Czech cities, with assets valued at approximately CZK 20 billion. “We aim to create a stable, conservative product that generates consistent returns while remaining accessible to the broadest possible group of investors,” explains Zdeněk Havelka, COO of CPI Property Group. Speaking exclusively with Hospodářské noviny, he said the fund targets an annual return of about 6%, split between rental income and property value appreciation.
CPIPG is making it clear that stabilized rental properties traditionally offer a conservative investment opportunity, meaning the returns they produce are relatively low. “The issue of Czech funds buying assets from their mother companies has become a recent talking point and will likely be scrutinized in this operation. Havelka told HN that the fund would initially acquire just 10% of Vitek’s 11,000-flat portfolio as it begins collecting investor money.
His portfolio is spread across key non-Prague regions, with nearly 5,000 apartments in Ústí, around 4,000 in Ostrava, and over 2,000 in Liberec. While most are older panel buildings, CPI claims to have fully renovated many units, with insulation and other renovation work ongoing across the portfolio.
“There will undoubtedly be much discussion about the performance of these apartments,” Havelka told HN. “But even the current setup, where initial investors will enter the fund at a price level of CZK 34,000 per square meter, is attractive and offers substantial potential. This price is not only below construction costs but also significantly contrasts with current apartment prices, which are around CZK 85,000 per square meter in regional areas and CZK 150,000 in Prague.”
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