AFI Europe and FINEP have announced the conclusion of a long-term framework agreement on cooperation in the development of rental housing in Prague. The move is based on their previous collaboration in this area.
As part of the Memorandum of Cooperation, AFI Europe has expressed interest in purchasing up to 1,728 apartments in five locations in Prague over the next few years. Among them are Barrandov, Opatov, Západní Město, Harfa and Poděbradská. The houses that AFI Europe will buy in the following period have from more than 50 to 500 apartments and their average size is 55.3 sqm. Construction will start between 2025 and 2026 and be delivered to the market in 2027 and 2028.
"We believe that sufficient supply on the market is the best way to regulate rising rents. That is why we have decided to focus not only on owner-occupied housing but also on rental and cooperative housing within the framework of our housing affordability program. Each of these segments makes up approximately a third of our projects. Although it would undoubtedly be more advantageous from an economic point of view to sell apartments for ownership at the moment, the development of the rental fund in the capital is necessary and correct from a medium and long-term point of view," says Ing. Tomáš Pardubický, CEO at FINEP.
"Cooperation with FINEP is the next step in expanding our rental housing portfolio in Prague and Central and Eastern Europe. We see potential in long-term investment in this segment, especially in dynamically developing locations such as Barrandov, Opatov or Harfa," said Doron Klein, Deputy CEO at AFI Europe Group and Director at AFI Europe in the Czech Republic and Romania, shortly after the signing.
