UBM Development Czechia has somewhat unexpectedly sold one of the buildings in its project Timber Praha to the investment fund Future X1. Building M is the first multi-level apartment building in Czechia to be built from wood. When completed, it will offer 15 flats, or a total of 1,000 sqm of space. Future X1, which will lease out the building, is building a portfolio of assets that it’s preparing to sell to a major foreign investor.
This isn’t the first time the two companies have done a deal in the same location. UBM sold it 16 units in Arcus City two years ago, along with nine flats in Astrid Garden (in Prague 7) and an additional four in Neugraf. “This is the first time we’ve decided to buy an entire building in one transaction,” said Ondřej Zaruba, investment manager at Future X1. “Building M is the perfect size for us, so it was logical in view of the synergies that you get one you own all of the units at a single address.”
“We originally expected to sell all of the flats in Timber Praha to individuals,” said UBM Development’s CEO Thomas Winkler. “We’re delighted that institutional investors expressed interest in our first timber buildings in Czechia so quickly.”
“We look at all of our projects through the eyes of an investor,” said Winkler. Reducing our carbon footprint is an extremely important parameter, both during construction and when it comes to operations. And you can only achieve that if your project works from an economic standpoint.”
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