The Reico ČS Nemovitostní (RČSN) fund is expanding its investment portfolio. To its commercial real estate portfolio the fund is now adding the first residential rental housing project.
RČSN agreed with the Finep development group to purchase the Nový Opatov G1 project in Prague 11. The Nový Opatov is located near the D1 and is directly on the C metro line. Construction works begin in September 2024, and the first tenants will be able to move in in 2.5 years.
"As part of the future direction of the fund, we have decided to spread the risks over another segment of the real estate market, namely residential housing for rent. We bought a project with a building permit from Finep and will have a turnkey building with 170 apartments. This is the first time in the fund's history that we are entering development," says Dušan Sýkora, Chairman of the BoD at Reico IS ČS.
The real estate fund was founded in February 2007 and is the largest and at the same time the oldest Czech real estate fund. It is mainly intended for conservative investors. The fund now owns nine properties in the Czech Republic, seven in Slovakia and five in Poland. The fund has 20 properties in its portfolio with a current market value of almost CZK 38 billion (€1.5 billion). At the end of August 2024, over 120,000 shareholders invested in the RČSN fund, and the fund's yield over the last 12 months was 5.1% (as of August 15, 2024).
