Ostrava, Czech Republic
Purchase of undervalued flats in original condition, subsequent reconstruction, and sale at the market prices.
The Charles Bridge project represents investments in the purchase of undervalued housing units, their reconstruction, and subsequent sale. It is an additional part of the portfolio of real estate activities. Based on the top-down analysis, the third-largest city in the Czech Republic, Ostrava, was selected as a very interesting investment location. The ratio of real estate prices to average household income here offers the potential for one of the most interesting long-term appreciations in the Czech Republic. While in Prague and Brno the prices of residential real estate attack the level of EUR 4,000 per m2, in Ostrava it is still possible to buy older flats around 1,200 to 1,300 EUR per m2. Real estate prices in Ostrava are growing at a double-digit rate.
We provide financing to partner companies in the region, which can independently ensure the entire investment process – from the identification of undervalued older apartments, subsequent acquisition, reconstruction, to the actual sale to new owners.
Real estate financing is secured through a lien on real estate, which gives us direct control over an undervalued asset if any problems occur during the investment process. The average investment cycle of one residential unit is approximately 6 months, the reconstruction itself takes approximately 3 months. The average amount of investment in one residential unit is approximately EUR 100,000.
We have prepared a yearly report for 2019, in which you'll find a lot of interesting information about the world of finance and investment.