By purchasing the real estate at Mezi Vodami 31, Modřany, Prague, NEMO, a real estate fund, expanded the total area of its office buildings to 17,500 sq. m and the value of its portfolio to CZK 1.3 billion. The purchase is a celebration of the first anniversary of NEMO, a fund established by Českomoravská Nemovitostní (ČMN).
“When it comes to property owned by the fund, we prefer quality over quantity. Our goal is to have a broadly diversified portfolio composed of premium real property with highly-rated tenants and long-term lease contracts. The state-of-the-art office building Mezi Vodami 31, which the new long-term contracts relates to, perfectly matches the fund’s strategy,” said Josef Eim, ČMN’s vice-chairman.
Focus on Czech real property
NEMO invests particularly into those projects in the Czech Republic that have consistent and sustainable potential of rental income in the long-term. It invests into well-functioning projects with high-quality tenants and longest possible lease terms. The target net yield for investors into profit participation certificates is 5 per cent per annum, while the minimum investment is only CZK 500.
The fund’s portfolio currently includes three office buildings in Prague. “Along with the Nestlé building in Prague-Modřany, the fund presently owns a building at Václavské náměstí 62 and a building in the Pekařská street in Prague, with Volkswagen Financial Services as its principal tenant,” added Josef Eim.
The building at Mezi Vodami 31 is unique also thanks to its captivating design. The glassed, U-shaped construction with 5 floors above ground and 2 floors under ground has approximately 10,000 sq. m of useable area. The building is easy-to-reach, with a tram stop (Belárie, lines 3, 17 and 52) in front of it and two city bus stops in the near vicinity. There is a good connection to the City and Prague ring roads as well. Nestlé has occupied the building since its construction. The prolongation of the lease contract strengthens confidence in the dynamically developing location, which is suitable both for residential housing and office buildings.