Mrakodrap Ostrava

• The project has already obtained a building permit, which has become final and legally binding. This represents a lower risk for investors.

• When the investment and returns are being paid out, investors have partial priority over the general contractor, which is secured through a retention amount above the market standard.

• The general contractor has already been contracted and the financing bank has been secured. At the time Crowdberry investors enter the project, a 25 % pre-sale level must be achieved, of which 12 % of apartments have already been sold.

• The capital from Crowdberry investors amounting to CZK 90 million is complemented by the developer’s contribution of CZK 80 million. Thanks to the above-standard amount of the developer’s contribution, the risk for investors is significantly reduced again.

• The reconstruction is supported by the City of Ostrava, and the project stands out thanks to its distinctive design by renowned architects Eva Jiřičná and Petr Vágner of AI.Design.

• The reconstruction will be led by an experienced development team, while apartment sales are handled by the renowned real estate agency Svoboda & Williams.

• Mrakodrap Ostrava is located in an excellent location in the rapidly developing centre of Ostrava, with complete civic amenities and good transport connections.

Investor protection is discussed in more detail in the Investment Information document (IoI), which is available after expressing a non-binding interest in investing.

🟡 Market risk (medium)

The sale of the project, or rather of the individual units, primarily apartments and parking spaces, is being carried out through the renowned real estate agency Svoboda & Williams. A 25 % pre-sale level is a condition for Crowdberry investors to enter the project. Currently, as much as 12 % of the apartments have already been sold. The risk lies in the inability to sell a sufficient number of units within the given investment horizon at the set list price, i.e. a number that would enable Crowdberry investors to be paid out with the calculated return.

🟢 Construction risk (low)

The contract for work will be concluded at a fixed price and with a fixed completion date, with sufficient retention of at least 12 %. The retention will be released in two parts: the first part after final approval of the building, and the second part only after the exit of Crowdberry investors. In the event of an increase in the price of the works, the developer guarantees additional financing of the construction in the form of a contribution outside the registered capital, without affecting the ownership share in the company. After completion of construction, the general contractor will provide a 5-year warranty for the building and a 2-year warranty for mechanical components.

🟢 Financing risk (low)

This risk is minimised because the investment from Crowdberry investors is released only after the bank loan documentation has been signed, i.e. the bank enters into the agreement under precisely defined conditions that entitle the target company to draw the loan. The loan is sufficient to complete the building into an operational state. In the event of a budget overrun, the developer will cover the difference based on a guarantee.

 🟢 Project management risk (low)

The managing directors are nominated by the developer and make decisions within defined limits. The parameters of key contracts are predefined together with the special purpose vehicle (which Crowdberry investors enter), and the managing directors may only sign contracts that meet these parameters. In the event of deviations from the business plan, contract criteria or milestones, approval by the supervisory board is required. If a managing director exceeds their authority, the special purpose vehicle has the right to replace them with its own nominee.

🟢 Permitting risk (low)

The release of the investment from Crowdberry investors is conditional upon obtaining a valid zoning and building decision. In the event of a delay in the final occupancy approval, milestones and pre-approved actions are defined to resolve open issues, or alternatively the entire development project may be sold if these issues are not resolved before the bank is repaid.

Risks are discussed in more detail in the Investment Information document (IoI), which is available after expressing a non-binding interest in investing.