With confidence that prices on the Czech real estate market are at stable and realistic levels, some property investors are aiming to raise funds to participate in the coming opportunities. Czech/Slovak-focused finance and investment company Natland Group among them, and in an interview with Czech daily Lidove Noviny (LN) on April 14, Natland Group executive director Lubor Svoboda said the company was planning a €40-70 million bond issue for its investments in 2011.
The Cyprus-based Natland Group specializes in private equity and real estate investment. Czech Position asked Svoboda for a breakdown of which areas the funds were likely to go towards.
“Most of the resources should be used for projects that have been identified and prepared in advance. The larger part, approximately 60 percent, will go into private equity investments, while the remaining 40 percent will go into real estate,” Svoboda told Czech Position.
In terms of its real estate activities, Natland is currently engaged in the Čakovický park residential development in Čakovice–Prague 9. Recently the company also sold all its rights and shares in the Ukrainian land acquisition company Agro 21 though it will continue to provide approximately €20 million in mezzanine capital for acquisition finance for the project.
According to Svoboda, the new capital will be more focused on the commercial real estate sector, specifically the office market.
“Investment resources should be directed to purchase A and B class office buildings as well as into land that is interesting for future development in the Prague region,” he said.
In the interview with LN, Svoboda also pointed out the relative market stability of the Czech market compared to certain eurozone markets like Spain and Greece, saying that the drop in housing prices was much less severe here and that investors have gained confidence from this fact.
