Generali Investments CEE: New real estate fund

The Fund will benefit mainly from property rentals.

Prague - Generali Investments CEE is offering a new Qualified Investor Fund – Real Estate Fund (Realitní fond). This Fund will allow for investors to participate primarily in revenues from rentals of apartment houses and commercial real estates, and also in expected growth in their market value. The minimum investment is CZK 1 million.

Nowadays, in the period of low interest rates, the Fund aims to achieve net revenue of 3 % p. a., primarily from rentals. In addition, investors will be able to potentially profit from capital gain if the real estate market value keeps growing.

“The new Fund is our first step in the implementation of our new product strategy striving to intensify our future investments in real assets,” says Martin Vít, Vice-chairman of the Board of Generali Investments CEE.

The Fund will invest into residential and commercial real estates in the Czech regional cities of Pilsen and Brno. “From our side this was a logical choice of two major university towns, in which we were looking for well-reconstructed historical buildings at their centres,” adds Martin Vít.

Compared with properties in Prague in general, the estimated value of residential and commercial buildings in the Czech Regions is priced favourably currently. According to the analysis prepared by CBRE consulting company, selected regional properties can bring on average up to 2 % higher investment return than in the capital while still having an interesting growth potential.

Real Estate Fund (Realitní fond), the open-ended mutual fund for qualified investors of Generali Investments CEE, investiční společnost, a.s., is offered in cooperation with RSBC Group which works for the Fund as an expert advisor and property manager. The property manager will maintain and develop a portfolio of several hundreds of leaseholders.

With respect to tax obligations, duration of the Fund has been determined to four years. When the recommended investment period is respected by the client, the returns will be tax-exempt for Czech tax residents (physical persons – individuals).

Throughout the whole three-month subscription period, i.e. until 15 December 2017, investors are able to enter this Fund without any entry fee. When complying with the specified duration of the Fund, the investors will be also charged no exit fee.