Fond Českého Bydlení expands portfolio with over 300 flats, valuing assets at EUR 40 Million

Fond Českého Bydlení, the Czech Housing Fund specializing in residential rental housing, has significantly expanded its portfolio with the acquisition of two apartment buildings in Beroun and Chomutov. This transaction, valued in the tens of millions of euros, adds 313 fully rented apartments spanning nearly 20,000 square meters to the Fund’s holdings. With this move, the Fund’s asset value has surpassed EUR 40 million (CZK 1 billion), more than doubling its portfolio size since inception.

The acquisitions, facilitated by Czech Home Capital, mark a milestone for Fond Českého Bydlení. Legal advisory services were provided by Glatzová & Co., while technical due diligence was conducted by Proficheck, s.r.o., and Bytecheck, s.r.o.

Since its founding in 2018 as the Czech Republic’s first fund focused solely on rental housing, Fond Českého Bydlení has consistently delivered strong performance. Co-founder Jakub Kořínek emphasized the strategic importance of the recent acquisitions.

“Our long-term goal is to maintain the Fund’s stable performance,” Kořínek said. “These acquisitions represent profitable investments and will help us achieve a yield competitive with or better than last year, when we achieved an 8.27% annual appreciation. Investors who joined at the Fund’s inception have already seen their investments grow by more than 50%.”

Kořínek also highlighted the Fund’s emphasis on regional rental housing markets as a key to sustained growth. “Investing in rental housing, particularly in smaller towns and catchment areas, has proven to be a smart strategy. It allows us to deliver consistent year-on-year appreciation. We are actively pursuing additional acquisitions to further strengthen our portfolio.”

The newly acquired properties are notable for both their size and their locations. The Beroun property features 55 apartments averaging 38 square meters, while the Chomutov building comprises 258 apartments with an average size of 56 square meters.

“Beroun is a very attractive town near Prague with full public amenities and excellent transport links,” Kořínek explained. “As property prices in major cities continue to rise, we are focusing more on smaller towns with strong growth potential.”

Chomutov, in particular, stands out due to the ongoing construction of the D7 motorway, which will significantly reduce travel times to Prague and other key areas. This makes it an affordable alternative for residents working in regions like Kladno, Slaný, and Louny.

Both properties are fully occupied by stable tenants, ensuring immediate cash flow. Kořínek noted that while the buildings have been well-managed, plans are in place for future revitalization to enhance their long-term value.

With the addition of these properties, Fond Českého Bydlení now manages a portfolio of 20 buildings across 12 locations in the Czech Republic and Slovakia. The portfolio includes 487 residential and non-residential units, encompassing a total lettable area of 29,327 square meters.

“Fond Českého Bydlení continues to position itself as a stable and promising investment vehicle in the rental housing sector,” Kořínek concluded. “Our focus on long-term value creation and sustainable yields makes us an attractive choice for investors.”

This latest acquisition underscores the Fund’s commitment to expanding its footprint while maintaining its reputation as a leader in the Czech rental housing market.