Development
CZECH DEVELOPMENT FUND SICAV, A.S.
About the fund
Set your path and invest in development projects with added value.
Czech Development Fund SICAV, a.s. is designed for experienced and confident investors who value the attractive appreciation of their funds through participation in development projects. The fund focuses on investments in the development of residential, manufacturing and logistics properties in Central Europe. The implementation of the projects is overseen from start to completion by a project team of experts with many years of experience in real estate investment, project management and bank financing. This allows the fund to achieve maximum appreciation. You can invest in the fund starting from CZK 1,000,000 or EUR 40 169 (according to the CNB exchange rate as of 01.02.2024).
Investment strategy
The fund’s strategy is to invest in development projects with interesting returns, in particular in logistics, light manufacturing and housing construction, to participate in their implementation and control, and to appreciate invested funds of investors through subsequent sales of completed properties.
Acquisitions are aimed at:
- fully prepared projects, determined for immediate commencement
- land plots with valid development consents and building permits
- medium-sized projects up to CZK 100 million
The fund’s yield is generated from the increasing value of properties during construction, and from their subsequent sales. The recommended investment horizon is therefore 5 years.
Diversification of real estate supports long-term stability of the fund’s performance and growth of invested capital. The fund’s participation in a project from its very beginning until its sale allows the fund to actively influence the project design, construction progress, financing and thus its future market value.
The fund chooses partners with experience in the construction and financing of development projects who share the same philosophy and values.
How we do it
Investors’ deposits in the fund
Acquisition of property/SPV
Selection of the developer, funding
Project construction
Project completion and sale
Yield
Investment shares
Attractive investment appreciation thanks to Investment shares (IA).
In the event of lower fund performance,the hold-ers of investment shares (IA) have a minimal return of 7% p.a. up to the amount of the fund’s capital allotted to performance investment shares (VIA I) owned by the fund’s founder.
The founder of the fund provides a minimum return to the IA (by redistributing up to the amount of the VIA I fund capital).**
*Example of how the minimum yield on IA operates up to the amount of the fund capital VIA I.
**The minimum return on Investment Shares (IA) is 7% p.a., even in the event of a lower profit or even a loss of the fund. The guarantee is in the form of a redistribution of the fund capital from the holders of the Investment Performance Shares (VIA I), held by the founder, to the holders of the Investment Shares (IA), up to the amount of the fund capital attributable to the VIA I. The share of the VIA I in the fund capital must be at least 10%.
IA – Investment shares in CZK (PIA CZK, DIA CZK) and Investment shares in EUR (PIA EUR, DIA EUR)
VIA I – Performance investment shares
Note: Model of return in the event of a 10% founder’s share in the fund’s assets (IA)
Model development of one-million investment
PIA – investment preference shares
DIA – dividend investment shares
Information for investors
Legal form of the fund
Joint-stock company with a variable capital stock (SICAV)
Fund type
Qualified Investor’s Fund
Underlying assets of the fund
Real estate companies, loans granted
Issued security
PIA CZK CZ0008046471, DIA CZK CZ0008049095, PIA EUR CZ0008050408, DIA EUR CZ0008050416
Public tradability
No
Obligation frequency
Monthly
Minimum investment (IA)*
1 000 000 CZK or EUR 40 169 (according to the CNB exchange rate as of 01.02.2024).
Entry fee (IA)*
Up to 3 % according to the amount of the investment
Exit charge (IA)*
0% after the elapse of 45 months from subscription, 3% after the elapse of 36 months, 6% after the elapse of 24 months, 9% after the elapse of 12 months, 12% before the elapse of 12 months Exit fees are introduced as a protection for investors, meaning the investors who remain in the fund in line with the recommended investment horizon. Exit fees are included in the fund income.
Investment horizon (IA)*
5 years
Frequency of investment shares
Monthly
Due date of investment shares repurchase (IA)*
Until 3 months
Taxation of fund income
5%
Taxation of shareholders
Yes, according to applicable tax laws
Fund managed by
DELTA Investiční společnost, a.s.
Administrator
DELTA Investiční společnost, a.s.
Depository
Československá obchodní banka, a. s.
Auditor
PricewaterhouseCoopers Audit, s.r.o.
* IA
Investment shares in CZK (PIA CZK, DIA CZK) and Investment shares in EUR (PIA EUR, DIA EUR)
Why invest with CZECH FUND?
- Yield up to 9% p.a., minimal yield 7% p.a.
- The risk is diversified into various projects in terms of segment and region
- External independent valuation by reputable international companies
- The fund is controlled by the administrator, depository and regulated by CNB
- Cooperation with quality partners, suppliers and leading banks
- Experienced team for construction control and financial management of projects
Our satisfied investors
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My first decision made in the field of investments – I decided to invest my savings in funds. I can only recommend it, everything is working well.
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When I need any information from the world of finance, I always contact my consultant from EFEKTA. We can speak openly, and he can always help me find the optimum solution.
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Financial services at a high professional level and consultancy that has convinced me that investing makes sense.
Statutory information – notice for investors
Czech Development Fund SICAV, a.s. is a fund of qualified investors according to Act No.240/2013 Coll., on investment companies and investment funds; only a qualified investor according to Section 272 of this Act can exclusively become the shareholder or stockholder in this fund. In the case of an investment between CZK 1,000,000 and EUR 125,000, the suitability of such investment for the investor is assessed by the fund manager or administrator. The administrator warns investors that the value of investment in the fund might decline and rise and the return of the initially invested amount is not guaranteed. The fund performance in the previous periods does not guarantee the same or higher performance in the future. Investment in the fund is determined to achieve return during its long-term holding and it is therefore not appropriate for short-term speculation. In particular, potential investors should consider the specific risks that may arise from the investment objectives of the fund as set out in its statutes. The investment objectives are reflected in the recommended investment horizon as well as the fees and expenses of the fund.
Detailed information is contained in the fund or sub-fund statutes, which can be obtained upon request at the DELTA Investiční společnost registered office, or by sending a request to info@deltais.cz.
For further important information, please refer to the Key Information Document (KID). The fund’s Key Information Document (KID) is available at: https://www.deltais.cz/fondy/czech-development-fund-sicav-a-s or can be obtained by sending a request to info@deltais.cz. In paper form, the above information can be obtained at the registered office of DELTA Investiční společnost, a.s. Sokolovská 675/9 Karlín, 186 00 Praha 8. The specified information only has an informative character and neither constitutes a proposal for entering into a contract nor a public offer as defined by the provisions of the Civil Code.
Information on the processing of personal data related to Act No. 110/2019 Coll., on personal data processing, can be found on the website of DELTA Investiční společnost, a.s.: https://www.deltais.cz/.
Frequently asked questions
Why invest in a real estate fund with development projects?
The implementation of development projects usually generates higher profits than existing, fully leased properties. These profits, as well as risks, are shared by the developer and the investor, i.e., the fund in our case. Thanks to investment in development projects in residential and industrial construction that are attractive in the long term, the fund diversifies income and thus diversifies the risk as well. A decrease in the fund’s performance below 5.75% p.a. will be borne by DRFG first.
What is the minimum investment in the DEVELOPMENT fund?
The minimum investment in the fund is CZK 1,000,000 or EUR 40,169 (according to the CNB exchange rate as of 01.02.2024).
. The fund allows experienced investors to invest in more profitable assets in the form of development projects.
How does an investment in the fund exactly work?
The Real Estate Fund that focuses on development projects gathers deposits of individual investors for which the fund buys land plots, development projects or ownership interests in companies with development projects. The yield is generated from the increasing value of the properties during the construction, and primarily from the sale of the properties to final owners. Investors buy shares through which they become co-owners of developed properties.
What are Investment shares?
Holders of Investment shares have a priority over holders of other classes of Performance investment shares to crediting the fund’s yields at the minimum rate of 7% p.a. and at the maximum rate of 9% p.a. If the fund’s performance drops below the level of the minimum yield, this yield will be added from the assets appropriated to Performance Investment Shares of the fund.
What is the recommended investment period?
In consideration of the fund’s focus and development of development projects in time, the investment horizon is at least five years, during which time the investor’s investment will significantly appreciate.
What fees are associated with an investment?
An entry fee is associated with investments in the fund, which is 0-3% of the invested amount, depending on the investment amount.
Who ensures the fund administration?
The fund administrator is DELTA Investiční společnost, a.s., an investment company. Czech Development Fund SICAV, a.s. is regulated by the Czech National Bank.
How can I monitor the fund’s performance and implemented projects?
Investors are informed on the current performance of the fund in regular reports that are sent to their contact address. The fund publishes the Annual Report on the fund’s activities every year. These and other materials are also published on the fund’s website and on the website of the fund administrator.
Who is the founder of the fund?
The founder of the fund is DRFG, an investment group that focuses on investments in real estate, telecommunications and financial services. In real estate, DRFG has a ten-year experience in acquisitions and management of retail, warehousing and office properties throughout the Czech Republic, also as part of the Czech Real Estate Fund (CREIF). In 2021, they ensured the technical administration and operation of properties exceeding CZK 8 billion. The total value of the managed real estate exceeds CZK 10 billion.
More questions?
If you have more questions regarding this fund, or if you want to directly contact our representative for the sale of Czech Development Fund shares, you can use the link below, and we will promptly answer you.