The Czech Real Estate Fund NEMO is performing even better this year than in the successful previous year. In the first half of 2023, it achieved a return of 3.81%, representing a year-on-year increase of 0.6 percentage points. 

The performance for the last 12 months stands at 8.53%. Similar to last year, the implementation of inflation clauses continues to positively impact the dynamic growth of rental income. Additionally, the fund successfully filled the multi-functional office building Pekařská with new tenants under more favorable conditions, demonstrating that the demand for top-notch administrative spaces in Prague remains high.

The specialization in high-quality office buildings in attractive locations in the capital city has proven to be one of the main strengths of the NEMO Fund over the long term. Creditworthy tenants from multinational companies, such as Nestlé or Siemens, seek to establish their presence in Prague and are also capable of easily dealing with rent increases and energy market situations. As a result, the occupancy rate of buildings in the NEMO Fund's portfolio reached 96.8% at the end of the second half.

Furthermore, the NEMO Fund, which currently holds buildings like Apeiron and CORSO Karlín in its portfolio, is well-prepared to expand its portfolio with other top-notch properties due to the inflow of capital from investors. However, the fund will not rush to make acquisitions at any cost, prioritizing stable returns for investors. The number of investors has rapidly increased in recent months as people are increasingly seeking conservative investment instruments with attractive returns to protect their money from inflation. Since the beginning of this year, the number of clients in the NEMO Fund has increased by a quarter to 7,200.

In addition to the potential returns of new assets, sustainability will play a crucial role in the fund's expansion. NEMO now carries the designation of a "Light Green Fund," according to the European SFDR regulation, which applies to financial products governed by sustainability principles. In the second half of the year, the fund's management plans to conduct energy audits of the buildings in its portfolio. This will enable better measurement of energy consumption and uncover opportunities for further enhancing energy efficiency, aiming for international sustainability certifications such as LEED or BREEAM for NEMO's assets in the future.

 

Furthermore, the NEMO Fund has gained a competitive advantage in sustainability with a recent innovation in the form of offering "green leases." These are special types of rental agreements that obligate both the lessor and the lessee to reduce the environmental impact of their businesses. Currently, only a small percentage of office buildings in Prague offer these types of leases. However, the demand for green leases is sharply rising, especially as multinational corporations increase their efforts in the ESG field and apply their global strategies in the Czech Republic as well. This, combined with persistent inflation, insufficient construction in Prague, a highly diversified portfolio with nearly 100 creditworthy tenants, and new acquisitions, will contribute to the attractive performance of the NEMO Fund in the future.

The NEMO Fund invests in commercial real estate within the territory of the Czech Republic, focusing on properties with consistent and long-term sustainable potential for rental income. This provides investors with stable and attractive returns on their investments. NEMO includes well-established projects with high-quality tenants and long lease terms in its portfolio. The fund targets a return of 8% for investors holding shares in the fund in 2023, emphasizing a linear return profile at each monthly valuation. The fund is designed for investors with a medium-term investment horizon (5 years).

 

Founder of the Fund: Českomoravská Nemovitostní a.s.