Mint Investments has established a new real estate fund which will target people interested in investing in the resi-for-rent sector. MINT rezidenční fond SICAV plans to acquire rental residential buildings in large Czech cities, mainly in Prague and Brno. The fund completed its first €19 million (CZK 500 million) acquisition in the country’s second-largest city – Mint Living Brno Campus comprises 120 apartments as well as office and retail space.
This is the first fund available for the general public in the Czech Republic which is focused on rental housing. The fund has a targeted performance of 4-5% per year, however, the founders expect even better results at 6-9% per year. The minimum investment is CZK 500.
"Our long-term goal is to become a leader in the dynamically developing segment of modern rental housing, "said Radim Bajgar, Partner at Mint Investments and one of the fund's founders. “We believe that next year we will collect at least CZK 500 million from investors and make two or three new acquisitions. In the long run, we are not only interested in Czech cities, but also in the metropolises of neighbouring Central European countries.”
The fund will mainly purchase new rental buildings with at least 100 fully furnished apartments and is currently negotiating with several developers to secure tailor-made projects.
The fund’s first investment, the Mint Living Brno Campus apartment complex was acquired for more than CZK 500 million. Česká spořitelna financed approximately 60% of the purchase price. The asset comprises 120 apartments on an area of 4,600 sqm, in addition to office and retail space with a total area of 3,500 sqm and more than 100 indoor and outdoor parking spaces. The complex was built in 2012 and is currently practically fully leased.
