We have closed the first tranche of investment in the Apartments Lipno project

21/04/2022

Czech and Slovak investors have invested CZK 46 million in the Apartments Lipno development project in the first tranche, which we are now successfully closing. This money will be used by the developer - Top Building Group - for the acquisition of the plot and works related to the preparation of the project. The total investment that the company plans to raise through our investment platform will amount to over CZK 90 million.

More than 70 Czech and Slovak investors have expressed interest in investing in the Apartments Lipno project, starting from CZK 500,000 with a target initial yield of 20-25%. The higher expected yield reflects the fact that investors enter the project at an early stage when they purchase the land. The investment serves as part of the required equity and thus the investors become co-owners of the project.

Czech and Slovak investors have reacted to changes in the holiday property market during the covid-19 pandemic, when the importance of summer and winter recreation in the Czech Republic increased at the expense of foreign tourism. The increased demand has thus pushed up the prices of holiday properties by 32% [1] over the last three years. Moreover, the Lipno area, where the project will be built, is one of the most popular and attracts Austrian clients as well. This is also due to the fact that the project will be built in the quieter northern part of Lipno, which, unlike the main tourist centres here, does not suffer from excessive tourism. Robert Růžička, the managing director of Top Building Group, says of the company's future plans, “We want to start sales as early as May. We believe that customers will appreciate the quiet location within easy reach of tourist and recreational centres.”