Lend to a Building Renovation in Prague. No Bank Ahead of You: Crowdberry Investors Hold the First-Ranking Property Pledge
The family house built in 1945 on Čistovická Street in Prague will be transformed into 14 units: 3 two-room apartments, 3 studio apartments, 2 commercial units, and 6 cellars, with garage and parking spaces. The developer is targeting smaller apartment layouts, which are in the highest demand in Prague and whose prices are rising the fastest. Prices for 1+kk apartments have increased by 15% over six quarters.
Security | First-ranking claim on proceeds | Interest yield of 9.28% p.a. | 21 months
Through a senior loan, you can earn an interest yield of 9.28% p.a., secured by a first-ranking property pledge. For every CZK 100,000 invested, you will receive approximately CZK 116,801 back within 21 months. Real estate loan investments on Crowdberry deliver results. Bottova Residence generated an annual return of 10.37% for investors, and the loan was repaid early, after just 378 days.
This investment opportunity differs from previous Real Luxembourg projects on Crowdberry: investors hold a senior position this time. Crowdberry investors are the sole creditors, and the first-ranking property pledge is established on the drawdown date. This is the position typically held by a bank in development financing.
Borrower | RL Immo 43 s.r.o., a special-purpose SPV of the Real Luxembourg group |
|---|---|
Investment Type | Senior loan, with Crowdberry as the sole creditor |
Loan Amount | CZK 28 million in two tranches (CZK 20 million + CZK 8 million) |
Campaign Target Amount | CZK 20 million (1st tranche) |
Interest Rate | 5.00% p.a. + 12M PRIBOR; as fixed on 8 October 2026, a total of 9.28% p.a. |
PRIBOR Fixing Period | 12 months from drawdown, followed by a rate reset |
Interest Payments | Interest is capitalized and paid together with the principal at maturity |
Maturity | 21 months from drawdown; early repayment without penalty from month 10 |
Repayment Source | Proceeds from unit sales, with a cash sweep to a blocked collection account |
Minimum investment | CZK 20,000 |
Purpose | CZK 20 million to refinance the developer’s own funds invested in the property purchase, CZK 8 million for renovation |
Loan Security | Yes |
Loan Security:
- First-ranking property pledge registered in the Land Registry as of the drawdown date. There is no bank involved in the project.
- Guarantee provided by the parent company, Real Luxembourg a.s.
- Notarial deed with direct enforceability, enabling swift debt recovery without court proceedings.
- Pledge over receivables arising from purchase agreements, bank accounts, and the ownership interest in the SPV, including the collection account into which unit sale proceeds are paid.
Why Invest
- Step into the role of a bank – the loan is senior, Crowdberry investors are the sole creditors, and they hold the first-ranking property pledge. In the Bryksova and Gutovka projects, investors ranked behind the bank. Here, you are first in line.
- Attractive interest rate of ~9.3% p.a. – a fixed margin of 5.00% p.a. + 12M PRIBOR. Interest accrues and is paid together with the principal at maturity.
- Fast investment turnaround – maturity of 21 months, with renovation expected to be completed by mid-2027 and unit sales in the second half of 2027. The developer can repay the loan early without penalty after just 9 months.
- The developer takes the first risk – the developer paid CZK 23 million for the building from its own funds and will invest a further CZK 6 million in the renovation before receiving the second tranche. In total, the developer has CZK 14.8 million of its own funds invested in the project, representing 35% of the budget.
- A 36% price cushion – just 63.9% of projected sales revenue is needed to repay the loan. Prices would have to fall by more than a third for investors not to recover their principal and interest.
- Renovation without the need for a building permit – works carried out under a notification procedure, sales exempt from VAT, and a budget fixed by a binding contractor offer. This limits the risk of delays.
- Small apartments in Prague sell fastest – 1+kk and 2+kk units are among the most expensive and fastest-growing market segments. The apartments and studios at Čistovická are valued in line with the average for new-build properties in Prague and 7% below the level in Prague 6.
- An experienced developer and a third joint project – Real Luxembourg has completed more than 30 development projects in Prague and over 200 real estate transactions. The Bryksova and Gutovka projects are financed and progressing according to plan.
- Multi-layered security – a first-ranking property pledge, a parent company guarantee, a notarial deed with direct enforceability, and pledges over receivables, bank accounts, and the ownership interest in the SPV.
Investment Manager’s Assessment
Developer and Project
Risks
Every investment carries risk. For Čistovická, we have identified the main risks and established conditions to mitigate them. The credit rating of B takes into account the project’s financial and non-financial indicators, as well as the quality of its security: a senior, first-ranking property pledge with no bank ahead of investors and loan coverage based on liquidation value. The agreed margin of 5.00% p.a. above PRIBOR is in line with the internal pricing range for this rating.
- Pricing risk. The apartments and studios are priced in line with the Prague average for new-build properties and 20% above the average in Řepy. This pricing is supported by their compact layouts and B+ standard. The independent valuer’s assessment is just 4% below the developer’s price list. Mitigation: the loan can be repaid from sales proceeds equal to 63.9% of projected revenue; the minimum-price covenant of CZK 170,000 / 140,000 per m² is below the independent valuer’s assessment, and the developer must maintain at least CZK 10.1 million of its own funds in the project.
- No presales. The project has no reservations yet, so demand has not been validated. Mitigation: investors hold a senior position secured by a first-ranking property pledge; proceeds from every sale are swept towards repayment, and buyers’ deposits reduce the outstanding loan. Both the independent valuer and the developer estimate a sales period of 6–12 months, while the supply of small apartments in Prague is declining.
- Non-residential units. 11 of the 14 units are studios, shell-and-core spaces, cellars, and parking spaces. These appeal to a narrower pool of buyers and may have more limited mortgage availability. Mitigation: the apartments and studios alone are sufficient to repay the loan, while the remaining units account for just 9% of projected revenue and serve as a reserve.
- Construction risk, guarantor risk, and liquidity risk are covered in the Financial Analysis, available after you register a non-binding indication of interest in investing.
The investment carries a risk of partial or total loss of the invested capital. The investment opportunity in the target company is offered through Crowdberry Investment Platform j. s. a.