News Article alternative Czech Republic FINEP Heimstaden investment living Prague residential
by Property Forum | Investment

Swedish company Heimstaden is entering the Prague rental market. It has acquired the first 164 units under construction in Prague's Holešovice district as part of the Pergamenka project from developer FINEP.

FINEP will build 164 fully equipped apartments, 162 parking spaces and 4 non-residential premises for Heimstaden on a turnkey basis. Future tenants will also have access to a reception, restaurant, café and facilities for sports and relaxation. Heimstaden will offer its first Prague apartments for full occupancy in early 2024. The Swedish company will pay almost CZK 1.2 billion for the Prague portfolio. 

"Since its entry into the Czech Republic at the beginning of last year, Heimstaden has declared a strong desire to continue investing here. We crossed the border of the Moravian-Silesian region in March this year with the purchase of 226 apartments in Pilsen. Now we have also made our first acquisition in Prague," says Stanislav Kubáček, Head of the Acquisition Team for Germany and Central and Eastern Europe.

"We want to continue to be the market leader in rental housing in the Czech Republic. Not only in the size of our portfolio, but also in the quality and stability of our services. Offering rental housing to customers in Prague has been a big ambition of ours from the beginning and I am glad that we have succeeded in our first investment," adds Jan Rafaj, CEO of Heimstaden. 

The Prague acquisition is also the first joint venture between Heimstaden and FINEP. "We are pleased to have agreed to work with the largest rental housing provider in the Czech Republic, and one of the largest housing funds in Europe. We were able to share our experience not only from the Czech market but also to take into account good practise from abroad, already at the project preparation stage. Thanks to this, we have created a product optimised for rental housing in our location in Holešovice, which at the same time meets high demands for sustainability in construction and subsequent operation," says Tomáš Pardubický, CEO of FINEP.

“We are mutually exploring different possibilities for our cooperation. I firmly believe that we will benefit from further possible joint projects and the development of rental housing in Prague and the Czech Republic," adds Stanislav Kubáček.

Heimstaden worked on the acquisition with the consulting companies Dentons (legal), Deloitte (tax and commercial) and Arcadis (technical).