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On his arrival, Honza told us: “I see Crowdberry as a unique project that connects investors with interesting investment opportunities and talented people. I look forward to using my experience in transaction advisory and development here. There is a great team of people here and I am happy to help Crowdberry further develop the real estate segment .“

Jan Rovný joins us from Urban Developers and Investors, where he was responsible for new investments and financing of development projects in Central Europe. Prior to that, he worked at Patria, where he was involved in several large sales and acquisitions of companies in the CEE region and was also responsible for the development of the Profireal group in Southeast Asia. Among other things, he acted as an advisor on two successful IPOs on the Prague Stock Exchange.

Peter Bečár, Partner at Crowdberry, commented on the expansion of the team:”I am glad that Honza decided to strengthen our team. CB Property Investors Qualified Investor Fund is preparing several new investments in residential and industrial development and I have no doubt that Honza’s experience will help us significantly with their implementation. .“

Investor interest in the fund’s strategy has exceeded our expectations. The speed with which the first subscription round of investments filled up shows not only the available capital, but also the gap in the real estate market that CB Property Investors is filling. At the same time, it opens up space for further development in the Czech Republic and Slovakia.

The aim of the Czech-Slovak real estate fund CB Property Investors is to provide investment support not only to Czech and Slovak development projects with added value, but also to existing buildings with untapped potential. By carefully selecting projects, it aims to improve the ecological footprint of Czech and Slovak properties and reduce their adverse effects on the surrounding environment (e.g. by reducing greenhouse gas emissions), thus creating room for the introduction of sustainable technologies. In some cases, this could also include intervention in the physical character of real estate – modernisation of buildings and their interior systems. Optimising the use and improving the economic performance of selected development projects should bring investors an appreciation of 10+% p.a. The fund focuses primarily on logistics properties, retail parks and residential projects. It aims to make investments of EUR 30 million over three years and manage a portfolio with a total value of over EUR 75 million.

The underwriting of investments was preceded by an in-depth analysis of up to a hundred projects, which yielded those that met our strategic criteria and the requirement for superior returns.

“These are real estate projects with potential for value growth. For example, the conversion of an older office building into residential units or the construction of smaller commercial industrial projects. CB Property Investors is a fund that addresses both Czech and Slovak investors. It focuses on investment opportunities in the domestic environment, responding to the growing interest of Czechs in real estate as a safe investment destination, ” says Omar Sattar, managing director of Crowdberry’s real estate division, who heads CB Property Investors.

The fund’s strategy has not only attracted investors, but has also attracted the attention of developers, banks and other partners. All of this shows the appetite of potential investors and that they trust the Crowdberry team and our experience. We very much appreciate the trust of all the fund’s investors.

You broker investments directly into companies. Where are you on the spectrum between passive investing and entrepreneurship?

I would create a whole new category for us. We focus on the Czech and Slovak market, on growth capital. Our investors become co-owners of projects and participate in the growth of companies. They don’t buy shares from other holders, they put in capital directly.

Who are your clients?

We try to reach those who are eager to start investing, as well as those who have already done something in this field and are looking for new opportunities. The third group consists of more passive investors looking for specific opportunities that fit into their portfolios. We like to work with investors who are not only looking for capital appreciation, but also want to participate in the growth of the company, be its ambassadors, and support its image. This is extremely important for the development of local businesses.
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Do you also deal with the issue of exits from investments?

Yes. We ourselves try to provide know-how to companies to make them marketable or ready for further investment capital – both local and foreign.

So you also work for clients on a consultancy level?

We represent investors and offer them the expert knowledge and extensive experience of our team in various segments. By the way, in the Czech Republic and Slovakia there are very few experts focused on the growth of local or global companies.

Investments always go into primary underwriting?

The principle is roughly as follows: Investors acquire a stake in a company or real estate project and make growth capital available through their investment, which can be directed into new technology, building improvements, hiring people, or other forms of expansion. Often investments are structured to include various investor protection mechanisms, such as liquidity preference on sale and other specifics.

Standard investments are hugely overregulated. How is it for you?

The situation is different for alternative investments, with a major change to the regulatory framework due to take effect this November in the form of a new European directive governing the conditions for collective investment platforms in the EU, which should unify and improve conditions for both firms raising capital through crowdinvesting and investors. We are in favour of the regulation and consulted the National Bank of Slovakia ourselves when setting up the platform. Rather than legislation, what limits us in local markets is the continuing distrust of investment, probably stemming from the experience of the 1990s. In the USA, young people have been taught how to invest in high schools for decades. If Czech real estate is invested in by South African or other foreign funds motivated by the prospect of higher returns, why can’t Czechs and Slovaks?

How did Crowdberry come to be?

We founded the platform in 2015 in Slovakia as a professional digital marketplace for entrepreneurs and private investors to provide attractive opportunities and support the growth of innovative Czech and Slovak companies. Today we have more than 3,500 users and over 500 investors who have invested more than 30 million euros in 19 companies.

Has covid affected your business?

I see Covid as a reboot. A large part of our daily activities have moved online and we have all received “training” not only in the use of new technologies, but also an impulse to take a different view of capital management. The change is wide-ranging, global and really significant. Many investors have been cautious, but others have been preparing investments that are becoming relevant now. I think the situation could help shift some capital from current accounts to investment, especially in the context of potentially rising inflation.

You have opened two funds, one for startup companies and one for real estate. For the convenience of investors or for diversification?

For both. Specifically in the case of the real estate fund of qualified investors CB Property Investors, the reason was also that some potential investors do not want to study project prospectuses for a long time. They trust us and want us to choose the best option for them.

Crowdberry, an investment platform enabling private investors to co-own Czech and Slovak companies and real estate, has launched a new real estate fund for qualified investors, CB Property Investors Podfund (CBPI). The fund aims to invest €30m over the next three years and create a portfolio with a total value in excess of €75m. CBPI will focus on investing in real estate with opportunities to enhance value, across various categories, while delivering superior returns of 10+% p.a. by optimizing the utilization and economic performance of the properties. The Fund is therefore primarily designed for investors interested in participating in the appreciation of domestic real estate.

The Fund’s activities are managed by a team of recognized real estate professionals with a combined experience of over 50 years. CBPI will be led by Omar Sattar, an experienced private equity and real estate expert. As CEE Director of Avestus Capital Partners, a leading European real estate investment and asset management firm, he was previously involved in investment transactions in excess of €2 billion. He is also currently an independent board member of CPI PG, the largest real estate company in the CEE region. His experience in the segment also includes several senior positions in established international firms, including as a director of the Czech offices of Colliers International and DTZ. The fund’s management will also be supported by Peter Bečár, a Crowdberry partner who previously held the position of Managing Director of P3 Logistics Parks for CEE.

“The establishment of CBPI is another significant milestone in Crowdberry’s dynamic development. We have more than five years of experience with growth capital, across diverse business sectors. We have made investments in innovative e-commerce companies such as Footshop and GymBeam, last mile logistics companies, as well as startups such as Ecocapsule, Boataround and the proptech platform AKULAR ,” says Peter Bečár, Crowdberry partner.

“In the last two years we have had the opportunity to fundraise for investments in the areas of accommodation for the elderly or residential and industrial development, which has confirmed the interest of our investors in real estate projects. Focusing on future appreciation and actively working with the added value of real estate is key to CBPI’s strategy. Within the fund, we want to create a balanced portfolio focused on different segments, which will also reduce the riskiness of investments ,” he adds.

CBPI will focus primarily on logistics properties, retail parks and residential projects, but will also look for other interesting opportunities with expected investment returns above the market standard. It is an open-ended fund that aims to raise EUR 15 million from investors over the next 12 to 18 months. Investors can start putting in their capital from March this year, with a minimum investment of CZK 1 million (or the euro equivalent).

“Even after 25 years of rapid development of the real estate market in the Czech Republic and Slovakia, there are still many exceptional opportunities for development, redevelopment and modernization of existing projects, as well as for establishing partnerships with property owners to help them increase the value of their assets, or to refinance projects. CB Property Investors Sub-Fund aims to unlock the future potential of real estate and create benefits for users ,” says Omar Sattar, managing director of Crowdberry’s real estate division, adding: “Value-enhancing real estate investments require a deep understanding of the market, the ability to seek out new opportunities and a clear vision for the projects being undertaken. Thanks to our extensive experience, we can identify the real potential of properties and optimise their business model, operations, leasing, marketing and communication activities accordingly to ensure higher risk-adjusted returns for our investors .“

The regulator of the CBPI Fund is the Czech National Bank, the depositary is ČSOB. The fund is administered by Winstor investiční společnost a.s. and the auditor is BDO Audit.