Czech real estate fund Investika has decided to take another step in diversifying its real estate portfolio. Its latest acquisitions are luxury properties in Croatia for short-term rentals.
The Investika real estate fund has expanded its investments in the luxury residential segment. It has bought a portfolio of four fully equipped upscale properties on the Croatian peninsula of Istria. All four buildings are part of the high-end Grand Sea Villas resort located near the border with Slovenia.
"The luxury residential segment in Croatia offers an above-average appreciation of the invested funds. Both due to the very limited supply of similar type of properties on the Croatian coast and due to the favourable outlook for this area in connection with the country's entry into the Schengen area and the adoption of the euro," says Václav Kovář, portfolio manager of Investika real estate fund.
For the largest non-bank retail real estate fund in the Czech Republic and Slovakia, the new acquisition represents a portfolio addition that brings geographic diversification in the stable segment of luxury residences. The villas intended primarily for short-term rentals are the second acquisition of Investika Real Estate Fund in Istria this year. In the summer, the fund acquired four hectares of land for tourist development in this popular location for tourists. "With the current acquisition, we have taken advantage of a unique opportunity in a location we know well and believe in its further development in the future," says Kovář.
"The inflow of funds from investors has been very strong this year, as many people were looking for a way to protect their savings from losing value in a high inflation environment," Kovář says. He also added that inflation clauses are part of Investika Real Estate Fund's contracts with tenants of properties it owns. Thanks to them, the fund has generated an appreciation of 7.67% for investors over the past 12 months, surpassing its long-term target return of 4-6% per year.
