NOVA Real Estate

Investing in the Sub-fund is designed for both private investors and institutional ones who are willing to accept a long-term investment horizon. That is why an investor should consider his/her liquidity needs even if investments in the Sub-fund may be liquidated.

The minimum amount, under Section 272 ZISIF1, that an investor can invest is EUR 125,000, or CZK 1,000,000 (equivalent of EUR 40,000) after performing a suitability test under Section 15 ZKPT².

How to Invest

Individual Investors

Investments in the Sub-fund are exclusively intended for persons matching the definition of a qualified investor in compliance with Act No. 240/2013 Coll., on Investment Companies and Investment Funds, so it is necessary to invest at least EUR 125,000 or CZK 1,000,000 (equivalent of EUR 40,000) after performing a suitability test and signing a Declaration of Risk Awareness concerning this type of investment and including investment experience.

Subsequently, investors wishing to make investments fill out the following documents with the fund manager:

+ Agreement on Subscription/Redemption of Investment Shares

+ Request for Issuance of Investment Shares

+ Declaration of Risk Awareness

+ Anti-Money Laundering (AML) Form

+ FATCA documents

Institutional Investors, asset managers and similar financial institutions

You will need to fill out a few subscription documents:

• Agreement on Subscription/Redemption of Unit Certificates
• Request for Issuance of Unit Certificates
• FATCA documents
• Official list of authorized persons entitled to sign these documents on behalf of the institution/client
• A copy of documents (e.g. your licence or similar document) that prove that your institution can be considered a professional investor

We will need hard copies of these documents from you by mail. To accelerate the process, please send us scanned copies by e-mail while the hard copies are delivered to us.

An investor can subscribe investment shares for the actual NAV (Net Asset Value). Every investor must fulfil the conditions under Section 272 ZISIF¹—qualified investor—minimum invested capital, risk awareness statement, etc.

Every investor has a right to investment shares in the Sub-fund at the current value. This type of open-ended fund structure provides an investor with great variability in terms of liquidity needs. With the investment company’s permission, an investor can sell the investment shares to a third-party as well.

*Basic data about NOVA Real Estate - Sub-fund 1*

With regard to the possible unforeseen fluctuations on real estate markets there could be fluctuations in the value of assets in the Subfund, increases and decreases of such value. In addition, an outage of planned income from renting real estate could lead to a reduction in the value of investment shares, due to lower net income. If it is a longer-term outage of rental income, this fact is reflected in a reduction in the value of the relevant real estate. With regard to the character of the real estate that comprise the fundamental part of the fund’s assets, it is necessary to draw attention to the fact that the liquidation of the real estate with an attempt to achieve the best price is demanding in time terms. In the event it is necessary to sell the real estate assets in a short period of time, there is a risk the expected price will not be achieved. The credit risk could consist, in particular, of entities that have payment obligations to the Subfund (e.g. the tenants of properties, debtors under investment instruments, etc.) not paying their liabilities. An outage of planned rental income could occur at random, where it affects more important property tenants, or it could be related to the overall situation on the market, for example in the case of an economic recession, and in this case it influences the behaviour of a larger quantity of tenants or potential tenants. Some of the real estate in the fund’s portfolio and also some of the rentals resulting from the real estate in the fund’s portfolio are booked in CZK. The fund’s total performance can therefore be influenced also by trends in the EUR/CZK exchange rate. The return on the investment is not hedged.

To determine the total risk indicator, we used available data of comparable investment funds on the Czech market.

The first refinanced acquisition for the real estate portfolio, consisting of three shopping centers located in the Czech Republic, occurred after April 2016. The Sub-fund has started generating returns for its investors.

In August 2016, the Sub-fund acquired four class A office buildings located in main office areas in Prague. The second acquisition helped portfolio diversification and mitigates economic cycles. There will be more acquisitions in the future.

Performance as of October 2024

(*) End-of-year revaluation taken into account.

(*) End-of-year revaluation taken into account.

The fund invests in the following types of premium commercial real estate:

• Office buildings in attractive locations in Prague
• Industrial and logistics complexes
• Regional retail parks

View key fund projects in two minutes. All invested projects are listed below.

Fund Manager (Real Estate)
Pavel Kadera 

Asset Manager (Real Estate)
Jan Mathy 

The Fund is governed pursuant to Act No. 240/2013 Coll., on Investment Companies and Investment Funds, and Act No. 256/2004 Coll., on Business Activities on the Capital Market. Compliance with legislation and particular statutes is supervised by the Czech National Bank.

All investments are overseen by the Fund’s Investment Committee. In addition, the Fund is regulated by the Czech National Bank and the investments are under constant supervision of the financing banks.

Supervision: Czech National Bank (CNB) The fund manager provides a monthly report to the CNB on the fund’s asset structure, including accounts.

Manager: REDSIDE Fund Management It was granted a licence by the CNB to perform management and administration of investment funds. The size of the assets managed exceeded EUR 200 million in 2016.

Depository: UniCredit bank Czech Republic and Slovakia, a.s. It monitors, performs and reports money transactions in compliance with the law and the fund’s statute.

Auditor: PricewaterhouseCoopers Audit, s.r.o. It audits the financial statements and fund’s annual report once a year.

Asset Valuation Officer: from the CNB list Revaluation of the fund is carried out by an Asset Valuation Officer from the CNB list independent of the investment company at least once a year.

More information on security through legislation/government guarantees

1. Supervision: The Fund is supervised by the Czech National Bank. The Fund is managed by REDSIDE, which provides the CNB (Czech National Bank) with monthly reports on the fund’s asset structure, including accounts. In addition, on a regular basis it sends quarterly reports to European Securities and Market Authority, which involves, above all, setting of internal control mechanisms and risk management.
2. Professional management of the Fund: the Fund is managed by REDSIDE, Fund Management, which was granted a licence by the Czech National Bank to perform management and administration of investment funds pursuant to Act No. 240/2013 Coll., on Investment Companies and Investment Funds.
3. Depository: the Fund’s manager is unable to carry out any transactions with the Fund’s financial means. The Fund’s property is in the custody of a depository—a bank with a special licence. Not even the depository is allowed to freely use the Fund’s means (lend, pledge, etc.). This property is kept on a special account that does not follow standard performance of a bank’s operations. The depository also monitors whether the Fund is managed with professionalism and in compliance with the law and the Fund’s Statute. The depository’s main role consists of checking whether the unit certificates are issued properly and redeemed (bought back) pursuant to the law and Fund’s Statute, whether the value of the unit certificates is calculated in compliance with the law and the Statute, the way the Fund’s asset valuation is carried out and whether the assets were acquired in compliance with the law, including checks on incoming and outgoing payments. The Fund’s depository is UniCredit Bank, a.s.
4. Separation of the Fund’s assets from the investment company’s assets (Chinese wall): the company’s assets are separated from the investment company’s assets. If the investment company goes bankrupt, the assets remain unaffected and are transferred to the management of another company.
5. Audit: Once a year, an audit of the Fund is carried out by PriceWaterhouseCoopers, which audits the Fund’s financial statements as well as its annual report.
6. Asset revaluation: Pursuant to the effective legislation, Act No. 240/2013 Coll., on Investment Companies and Investment Funds, and the Fund’s Statute, the Fund is obliged to revalue its assets. The revaluation takes place at least once a year independent of the investment company and is carried out by a valuation officer from the CNB approved list.
7. Investment limits: The Fund has to adhere to the limits laid down by the law and the Fund’s Statute. This is to prevent the risk of loss as a result of investing great volumes of financial means in one asset. The Fund is obliged to follow the legally binding investment limit per asset value of the Fund up to a maximum of 35% of total fund capital. Fund manager: The Fund manager REDSIDE, Fund Management, cooperates with the investment group Arca Capital in the area of portfolio management.
8. Fund Manager: REDSIDE Investment Company