Czech and Slovak investors have invested CZK 46 million in the Apartments Lipno development project in the first tranche, which we are now successfully closing. This money will be used by the developer - Top Building Group - for the acquisition of the plot and works related to the preparation of the project. The total investment that the company plans to raise through our investment platform will amount to over CZK 90 million.
More than 70 Czech and Slovak investors have expressed interest in investing in the Apartments Lipno project, starting from CZK 500,000 with a target initial yield of 20-25%. The higher expected yield reflects the fact that investors enter the project at an early stage when they purchase the land. The investment serves as part of the required equity and thus the investors become co-owners of the project.
Czech and Slovak investors have reacted to changes in the holiday property market during the covid-19 pandemic, when the importance of summer and winter recreation in the Czech Republic increased at the expense of foreign tourism. The increased demand has thus pushed up the prices of holiday properties by 32%  over the last three years. Moreover, the Lipno area, where the project will be built, is one of the most popular and attracts Austrian clients as well. This is also due to the fact that the project will be built in the quieter northern part of Lipno, which, unlike the main tourist centres here, does not suffer from excessive tourism. Robert Růžička, the managing director of Top Building Group, says of the company's future plans, “We want to start sales as early as May. We believe that customers will appreciate the quiet location within easy reach of tourist and recreational centres.”
The Apartments Lipno project will be built in two phases and will offer a total of 137 apartments with a restaurant and reception in 18 apartment buildings. In the first phase, 69 apartments will be built in 9 buildings. “The units will be for sale to end-users who can either get a retreat in a popular recreational area or acquire an interesting investment property with an additional return,” says Samuel Frankl, Crowdberry's investment manager, and continues, “our investors will get a share of the profits from this sale. We will still be preparing a second tranche of CZK 45 million for the platform.”
This is the first closed investment for Crowdberry in the residential segment in the Czech Republic. In the past, thanks to our investors, we were able to raise funds for KLM logistics halls in Slovakia in Nitra and Trnava, for a retail park in Piešt'any or for a home for the elderly in Dúbravská oáza in Bratislava. In 2021, we opened a real estate fund for qualified investors, CB Property Investors.
“Crowdberry is a partner that not only finances the project but also capable to help with its implementation.”
Robert Růžička, CEO of Top Building Group
More about the Apartments Lipno investment opportunity
¹Development of prices of holiday properties: REMAX