By purchasing the Mezi Vodami 31 office building in Modřany, Prague, the NEMO Real Estate Fund, established by Českomoravská Nemovitostní (ČMN), expanded the total area of its office portfolio to 17,500 sqm. The value of the Fund’s portfolio now reaches €47.7 million (CZK 1.3 billion).
The building at Mezi Vodami 31 has approximately 10,000 sqm of useable area. Nestlé has occupied the building since its construction.
“When it comes to property owned by the fund, we prefer quality over quantity. Our goal is to have a broadly diversified portfolio composed of premium real property with highly-rated tenants and long-term lease contracts. The state-of-the-art office building Mezi Vodami 31, which the new long-term contracts relates to, perfectly matches the fund’s strategy,” said Josef Eim, ČMN’s vice-chairman.
NEMO invests particularly into those projects in the Czech Republic that have consistent and sustainable potential of rental income in the long-term. It invests into well-functioning projects with high-quality tenants and longest possible lease terms. The target net yield for investors into profit participation certificates is 5 per cent per annum, while the minimum investment is CZK 500.
The fund’s portfolio currently includes three office buildings in Prague. “Along with the Nestlé building in Prague-Modřany, the fund presently owns a building at Václavské náměstí 62 and a building in the Pekařská street in Prague, with Volkswagen Financial Services as its principal tenant,” added Josef Eim.
