CB Property Investors closed first signing round at end-June
CB Property Investors Sub-Fund, a real estate fund for qualified investors established by Crowdberry, concluded its first signing round at the end of June 2021, opening the way to invest in new construction as well as the sustainable re-development of existing real estate. A significant part of the CB Property Investors’ portfolio, however, will consist of liquid and marketable real estate with regular rental income. Such a balanced structure makes it possible to minimize risk and provide a greater return on the portfolio.
Interest among investors in the fund’s strategy exceeded expectations. The speed at which the first signing round for investments was completed highlights the availability of free capital, as well as demonstrate the gap in the real estate market the CB Property Investors fund is designed to fill. At the same time, space is clearly opening up for further development in the Czech and Slovak Republics.
The fund will focus primarily on logistics real estate, retail parks and residential projects. Over the course of three years, it plans to invest €30 million and manage a portfolio with a total value exceeding €75 million.
The goal of the fund goes beyond providing investment support to Czech and Slovak development projects with added value; it also has its eye on existing buildings with untapped potential. By carefully selecting projects, the fund will strive to improve the ecological footprint of Czech and Slovak real estate, reduce its adverse effects on the environment (e.g., by reducing greenhouse gas emissions), and create space for the implementation of new, sustainable technologies. In certain cases, this could mean intervening in the material nature of real estate, such as modernizing buildings and their interior systems. Optimizing the use of selected development projects and improving their economic performance should bring investors expected returns of 10+% p.a.
The signing was preceded by an in-depth analysis of hundreds of projects; those selected met the fund’s strategic criteria and requirement for above-standard returns.
“These are real estate projects with the potential for value growth – for example, the conversion of an older office building into housing units or the construction of smaller commercial industrial projects. CB Property Investors, a fund aimed at Czech and Slovak investors, focuses on investment opportunities at home and responds to the growing local interest in real estate as a safe investment target,” says Omar Sattar, Managing Director of the Real Estate Division at Crowdberry and head of CB Property Investors
The fund’s strategy has drawn interest beyond qualified investors; it also attracted attention from developers, banks and other partners. All this testifies to the appetite of potential investors for the product as well as the trust placed in the Crowdberry team and its extensive experience.