From early times real estate belongs among traditional ways how to store value – and that is why it is considered one of the most sought-after assets even today. Although the price of real estate can be temporarily influenced by economic or political factors, its value remains stable over a long period.
Real estate attracts investors for a variety of reasons
- Stable value over the long term
- Protection against inflation
- Low price fluctuations
- Investment in the tangible assets
Unit certificate as part of the real estate
Investors have never been able to invest in real estate in such a simple way as they can now. The REICO NEMOVITOSTNÍ offers the opportunity to invest in large commercial properties worth billions of Czech korunas and benefit from the income generated by these assets. You can invest in the REICO NEMOVITOSTNÍ even with relatively low amounts, in the order of several hundreds of Czech korunas. Through purchase of unit certificates of the REICO NEMOVITOSTNÍ you will become an owner of a prime real estate assets which are otherwise hardly available for most investors.
Fund characteristics
REICO NEMOVITOSTNÍ invests almost 90% of its financial means into standing and well leased real estate. These are prime commercial properties, predominantly office buildings. The fund holds at least 10% of its equity in highly liquid financial assets to cover possible redemptions. The main sources influencing the fund performance comprise the rental income and the potential fluctuation in the value of its property portfolio. These sources, together with the active management of real estate, can generate very interesting income.
For whom is the fund intended?
REICO NEMOVITOSTNÍ is intended for conservative as well as dynamic clients who want to utilise the benefits that ensue from investments into high-quality commercial real estate, without worries related to managing or buying and selling the real estate. The minimum recommended investment horizon is 5 years.
Why invest in REICO NEMOVITOSTNÍ?
- Diversification of investment portfolio
Performance of real estate assets develops in a different way than the performance of financial assets. Adding real estate to investment portfolio decreases its overall volatility significantly. - Protection against inflation
Most lease contracts contain so-called indexation clause. In case of positive inflation, every year the collected rent will be adequately topped up by the inflation growth that occurred in the previous year.
- Investment that has a higher liquidity than typical real estate assets
In contrast with the direct purchase or sale of real estate; the stake in the real estate fund can be also easily and quickly purchased or sold.
- Suitable instrument to provide for a prosperous retirement
Due to its conservative focus, longer recommended holding period and regular investments, the fund is suitable for securing the retirement period.
- Low deposit amounts
Investments to the fund are available from only 300 Czech korunas.
- The investment yield is not subject to the income tax
After 3 year test the return from investment into the REICO NEMOVITOSTNÍ units exempt from the income tax *.
* Due to the ongoing legislation changes, especially in the tax area, we advise you to always consult these matters with a tax advisor.
Basic details of the fund
Fund fees
* These costs are not charged directly to the investor, they are paid from the fund assets and hence they decrease the net performance of the fund.
For more information, please contact the branches of Česká spořitelna, our external partners and the information line 800 INVEST (800 468 378).