CPI Property Group is preparing for the launch of a rental housing investment fund, reports Hospodarskenoviny.cz. The stabilised rental properties are a conservative investment opportunity with relatively low returns.
The fund, scheduled to launch in the summer of 2025, will encompass over 11,000 apartments across 15 Czech cities, with assets valued at approximately CZK 20 billion (€793 million). The fund aims to generate consistent returns while remaining accessible to the broadest possible group of investors. As Zdeněk Havelka, COO at CPI Property Group, mentioned to Hospodářské noviny, the fund targets an annual return of about 6%, split between rental income and property value appreciation.
The residential portfolio is spread across regions out of the Capital, 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 (€1,378) per sqm, 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 (€3,370) per square meter in regional areas and CZK 150,000 (€5,947) in Prague.”
