Upvest has recently closed an investment in the form of participation in a mezzanine loan for the Opatov Office Park in the Czech Republic, where Savills' technical assessment has played a crucial role.
Technical due diligence is an unavoidable step for real estate investments or financing. Upvest and Savills cooperate on projects related to investments in the form of shares in a class of assets known as real estate private debt and private equity.
Savills provides technical due diligence for these types of real estate projects, which is, along with commercial, legal or financial pre-investment due diligence, crucial for this type of investment. After evaluating all aspects and results of external reviews, Upvest adjusts the contractual relationship in the context of the identified risks and either implements or rejects the investment project if insurmountable risks are identified.
Upvest has so far financed CZK 3.4 billion (€135.2 million) within 52 investment projects at a total value of CZK 23.2 billion (€922.6 million) and has paid out CZK 1.6 billion (€63.6 million) to investors.
"Our projects yield higher returns on average than current inflation rates and stand as competitive alternatives to other investment instruments in the long run. A thorough technical assessment of a residential or commercial property is paramount for devising the right investment strategy or financing structure. All findings from these assessments must be diligently addressed. If a remedy isn't feasible, we opt to withdraw from the project," says Petr Volný, Chief Technical Officer at Upvest.
Related to the Upvest Opatov Office Park deal, David Musil, CEO at Upvest, explained: "The rectification of the technical findings was embedded in the contract documentation and the property owner is obliged to bring the technical defects to a perfect condition within a predetermined timeframe. This particular investment opportunity was offered to investors with a net expected return of 9.0% to 9.3% p.a."
David Musil
CEO
Upvest
Savills also provided Upvest with comprehensive project management services while relocating to new office spaces at Jindřišská 16. As part of the boutique office renovation, a new space design was created that respects the requirements of day-to-day work and client meetings.
