Mrakodrap Ostrava

Invest with Crowdberry in the renovation of Ostrava's landmark building.

This investment opportunity in Czech korunas offers investors the chance to become co-owners of a unique development project that the city of Ostrava has been preparing for several years. Crowdberry investors enter the project only once the developer obtains a building permit. Investors profit directly from the sale of apartments, garage parking spaces, and retail units.

The expected return is 10–15% per annum with an investment horizon of 2–3 years.

The Mrakodrap Ostrava is a project to revitalize the historically tallest residential building in the former Czechoslovakia. Along with the reconstruction of the building, a new parking garage will be built and the surrounding area will be revitalized. The architectural design was prepared by the prestigious AI-DESIGN studio under the leadership of world-renowned architect Eva Jiřičná, who incorporated the motive of a vertical garden into the project.

The capital from Crowdberry investors will enable the developer to purchase the property from the city of Ostrava, which strongly supports this project, and will also cover the initial construction costs.

The reconstruction will result in a residential building with 24 floors, 111 residential units and 2 retail spaces with a net usable area of 8,085 m².

Become a developer with Crowdberry and take advantage of a unique investment opportunity in an attractive location where demand for premium housing is growing.

• Expected return within 30 months of Crowdberry investors joining: 13.6% per annum, corresponding to 1.4 times the amount invested
• Expected return of capital and payment of income: no later than within 3 years
• Minimum investment amount: 168,300 CZK
• Total investment (1st tranche): CZK 55,000,000
• Use of investment: financing the purchase of real estate and initial project and construction costs related to reconstruction
• What is the source of the return: preferential dividend based on the return calculated on the basis of the development of pre-sales of apartments and other units (fixed calculation formula)
• Liquidity preference: payment of investment and return to investors before the developer
• Investment in the form of a share in the company: private capital provided in exchange for a 67% share in the target company's share capital
• Discount from the list price of the apartment for the first 15 Crowdberry investors: the first 5 investors who invest more than CZK 4 million will receive a 3% discount. The next 10 investors whose investment exceeds CZK 2.5 million are entitled to a 2% discount

The expected return at 30 months is very attractive to investors given the parameters of the investment opportunity and investor protection.

Thanks to the revenue adjustment mechanism, the developer has an incentive to maximize apartment sales. High pre-sales reduce the risk for investors.

• The condition for the release of investment from Crowdberry investors is the obtaining of a valid building permit, which reduces the risk for investors.
• The capital from Crowdberry investors in the amount of CZK 55 million is supplemented by the developer's contribution of CZK 27.5 million. Thanks to the above-standard amount of the developer's contribution, the risk for investors is significantly reduced.
• The renovation is supported by the city of Ostrava, and the project is also attractive thanks to its unique design by Eva Jiřičná.
• When Crowdberry investors join, a general contractor must be contracted, financing banks must be secured, and at least 20% of pre-sales must be completed.
• The renovation will be led by an experienced development team, and the sale of apartments will be handled by the renowned real estate agency Svoboda & Williams.
• The Mrakodrap Ostrava is located in an excellent location in the rapidly developing center of Ostrava with complete civic amenities and good transport links.
• The project includes a financial reserve in case of lower interest (covering up to approx. 18% of the price decrease), in which case the agreed return remains guaranteed to investors. After taking into account the retention fee, the reserve is up to 30%.
• Investors have partial priority over the general contractor in the payment of investments and returns, which is secured by a higher retention fee than the market standard.

Investor protection is described in more detail in the Investment Information (IoI) document, which is available upon non-binding expression of interest in investing.

In 2025, mortgage interest rates continue to fall in the Czech Republic. The average rate on new loans fell to 4.65% in April, the lowest level in three years. This development led to a significant revival of the mortgage market, with the volume of new mortgages reaching CZK 27.2 billion in March, representing a year-on-year increase of 75%.

With the growing availability of financing, demand for residential housing is increasing, which is reflected in rising real estate prices. In the first quarter of 2025, asking prices for apartments in the Czech Republic rose by 18% year-on-year. This trend indicates that the real estate market is recovering and apartment sales prices are rising again.

In the coming months, the market expects further growth in residential property prices, not only due to growing demand but also due to limited supply. This is significantly hampered by the still slow and complex permitting process, which is one of the most lengthy in Europe. At the same time, pressure is growing on the cost side of development projects – after a temporary decline, construction material prices have stabilized at higher levels and wages in the construction industry continue to rise. All this means that the reproduction cost of new apartments remains high and it is not realistic to expect that new apartments could be sold at prices lower than current prices without losses for developers. This development provides a stable basis for continued growth in apartment prices in the coming periods.

Ostrava is one of the most dynamically developing regions in the Czech Republic. It benefits from the growing importance of the local university, active support from the city for business development and innovation, and positive economic development in the neighboring region in southern Poland. This combination brings not only opportunities for growth in investment value, but also long-term stability in demand for rental housing.

Ostrava is one of the leaders on the Czech market in terms of rental housing as an investment tool. It stands out with above-average returns on rental housing, which also grew by 12% year-on-year in 2024 compared to 2023. While gross returns in Prague and Brno often hover around 3-4%, in Ostrava they commonly reach 5-6%, and in some locations even more. This difference is due to lower purchase prices for apartments with relatively stable and competitive rents. This makes investment rental apartments in Ostrava an attractive option for investors looking for regular returns and lower initial capital requirements.

We provide a more detailed overview of the market situation in the Investment Information (IoI) document, which is available upon non-binding expression of interest in investing.

The developer will convert the original high-rise building into a residence with 24 floors above ground, which will contain 111 residential units. The offer will be dominated by smaller apartments (1 to 2+kk), which will be complemented by spacious penthouses and commercial spaces. The well-thought-out mix of apartments meets current market demand and allows the developer to pursue a flexible sales strategy – ideal for young families, individuals, and investors. Larger apartments are usually the last to be sold, but in the case of this residence, the larger apartments are intended for a specific target group.

The architectural design was created by Eva Jiřičná (AI-DESIGN), including the dominant feature in the form of a vertical garden, which consists of distinctive balconies on each floor of the building.

Thanks to its premium standard (large windows, high-quality flooring, air recirculation, etc.) and technologies (preparation for air conditioning), The Mrakodrap Ostrava will offer above-average living. The area around the building has been revitalized with new parks, shops, and great transport links, which further increases the value of the project. A new parking garage with up to 200 parking spaces right next to the residence will provide convenient parking for residents and their visitors.

The developers are BAMIKA, s.r.o. and BBP Stavby s.r.o., both of which have more than 15 years of experience in construction and development. The joint venture's successfully completed projects include a number of residential projects as well as the construction of educational institutions. The Mrakodrap Ostrava project has strong support from the city, as it is in line with the strategy for the further development of this Moravian-Silesian metropolis. Thanks to the developers' experience in securing financing and managing construction, the risks involved in the project's implementation are minimized.

🟡 Risk of selling the project on the residential and non-residential property market: medium

The sale of the project, specifically individual primary residential units and garage parking spaces, is being handled by the renowned real estate agency Svoboda & Williams. The condition for Crowdberry investors to participate is a 20% pre-sale. The risk lies in the inability to sell a sufficient number of units at the set price within the investment horizon – i.e., a number that will allow Crowdberry investors to be paid out with the calculated return.

🟢 Risks associated with construction, such as budget increases or construction delays: low

The contract for work will be concluded at a fixed price and with a fixed completion date, with a retention of at least 12%. The retention will be paid in two parts – the first after final approval and the second after the exit of Crowdberry investors. In the event of an increase in the construction price, the developer guarantees additional financing in the form of a contribution outside the share capital, without affecting the share in the company. Upon completion of the construction, the general contractor will provide a 5-year warranty on the construction and a 2-year warranty on the technology.

🟢 Risk of additional budget financing from bank sources: low

This risk is minimized by the fact that the investment from Crowdberry investors is released only after the loan documentation has been signed with the bank. The agreement with the bank is concluded under precisely defined conditions that entitle the target company to draw down the loan to cover the completion of construction to a fully operational state. In the event of a budget overrun, the developer will pay the difference based on its guarantee.

🟢 Project management risk: low

The executives are nominated by the developer and make decisions within predefined limits. The parameters of key contracts are defined in advance in cooperation with the special purpose vehicle entered into by Crowdberry investors, and executives may only sign contracts that comply with these parameters. In the event of a deviation from the business plan or approved criteria, the supervisory board must decide. If an executive exceeds their authority, the special purpose vehicle has the right to replace them with its own nominee.

🟢 Risk of obtaining the necessary permits for construction and operation of the facility: low

The release of investment from Crowdberry investors is conditional upon a valid zoning and building permit. In the event of a delay in the final approval, milestones and pre-approved steps to resolve the issues are defined, or the sale of the entire development project if the issues are not resolved before the bank loan is repaid.

Risks are discussed in more detail in the Investment Information (IoI) document, which is available after you submit a non-binding expression of interest to invest.

Investments involve the risk of partial or total loss of the invested funds. The investment opportunity in the target company is provided through Crowdberry Investment Platform j. s. a.