IRQ funds is buying a stake in an upcoming apartment building in Prague 7

by   CIJ News iDesk III
2022-06-20   15:25
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As part of building the portfolio, the funds of qualified investors IRQ, focusing on quality real estate in the desired locations of Prague and Brno, have their first project. The fund is buying a stake in an upcoming apartment building in Prague 7. The Realism development group, which is preparing the project, has already selected an architect in the tender, and the relevant authorities are now approving the architectural study.

IRQ Funds have launched their activities on the Czech market. They added the first project to their portfolio - an apartment building in Holešovice, Prague. At the same time, they continue to search intensively and acquire other projects.

"In the first phase, we worked for IRQ funds to acquire qualified investors. This, of course, became complicated during the pandemic, but we still did well and we had already raised the necessary capital for the fund. The current situation, when interest in maximally safe investments increases in uncertain times, records an increase in demand for real estate. Today, it is also supported by high inflation growth and the search for ways against the devaluation of funds. Thus, appetite definitely does not leave investors," describes Zdeněk Tůma, co-founder and chairman of the supervisory board of IRQ Funds.

Martin Hubinger, co-founder and member of the Supervisory Board of IRQ Funds and also the owner of the Realism Group, adds: “Currently, it is not such a problem to find investors, because there is money on the market, but finding a good and economically meaningful project is very challenging. There is a lack of suitable land and acquisition opportunities, especially in Prague. The situation is also complicated by the disproportionately long permitting process, and the ever-increasing prices of building materials are also reflected in the project economy. We are therefore very pleased that the apartment building we are planning in Holešovice has met the strict criteria of the fund. "

The new project of the Realism group will grow in the following years on a plot of land with an area of ​​almost 1,200 sqm in U Měšťanského pivovaru Street. The developer also plans to incorporate plenty of greenery and ecological elements into the apartment building with underground garages and several retail spaces, which can be used, for example, for small shops, services or showrooms. Architects have already been selected in the tender. They have prepared an architectural study, which is now being discussed with the relevant departments of Prague 7 City Hall and the City Hall.

Through a pilot partnership with the Realism Group, the IRQ Funds are fulfilling their goal of working closely with major development companies. Thanks to this, it is possible to achieve higher growth in the value of the fund and the ongoing returns on individual assets than is standard in the real estate segment. The funds' strategy makes it possible to realize both the profit from part of the development margin and, subsequently, the revenue from the sale or long-term lease. "The cooperation of the Realism Group with IRQ Funds is a logical outcome of our current interconnected activities, focus and shared vision. However, the fund is also fully open to cooperation with other developers," adds Martin Hubinger.

For qualified investors who want to increase their assets in real estate, IRQ funds have three classes of shares with regard to the amount invested - the entry fee, "hurdle rate" and management fee differ in each class. The lowest invested amount is one million crowns. The quality of IRQ funds is guaranteed by cooperation with renowned partners: the administrator and statutory body are AMISTA investment company, the auditor KPMG, the depositary ČSOB and the appraiser Kreston A&CE.