Crowdberry investors earned almost double on real-estate

Crowdberry investors have achieved extraordinary double-digit returns by investing in Slovak commercial real estate. In 2020 and 2021, these investors had the opportunity to invest on Crowdberry's platform in a logistics distribution hall in Nitra and a land development in Trnava, both with long-term lease agreements in place. Earlier this year, these properties were successfully sold by developer KLM Real Estate. Crowdberry investors invested almost €1.5 million in the two projects and the total sale proceeds exceeded €2.7 million, almost doubling their investment in just three and a half years. The average annual return to investors was thus approximately 20%.

Investing at the right time in a growing segment

The investment strategy behind the real estate investments was based on the explosive growth of online sales in Europe, which rose 14% in 2019 and by more than 25% in 2020, mainly dueto the Covid-19 pandemic. It was during this period that Crowdberry launched its investment campaign with developer KLM Real Estate, totalling almost €1.5 million in the two logistics facilities in Trnava and Nitra. The investors not only became co-owners of the distribution halls together with the developer, but also co-owners of the land on which the developments sat, which both had 10-year lease agreements with Slovak Parcel Service.

The private investors were attracted by the unique opportunity to actively participate in the projects’ early stages and in the profits from the success of the development projects. The investment horizon was three years with a preliminary expected return of 11-14% per annum.

Direct investment in local and proven companies

The Crowdberry team carefully set up an investment structure that protected investors from negative scenarios and minimized development risks. The goal was to achieve superior returns with strong protection, while allowing them to participate in the growth of the lucrative commercial real estate segment. At the end of the first quarter of 2024, the developer KLM Real Estate, with 20 years of experience and the successful implementation of dozens of projects, proceeded to sell both halls according to the set investment documentation.

The properties in the commercial zone in Trnava and Nitra, serving as distribution centres mainly in the area of e-commerce, were purchased by an institutional fund for €2.7 million