Czech Home Capital, a major player in the fast-growing rental housing market, has bought 254 apartment buildings in Dresden. The company entered the German market last year. He currently has $ 170 million in transactions in Germany. Czech Home Capital is controlled by a group of investors led by David Rusňák, the main shareholder of the DRFG group.
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“This is the second transaction of a similar volume in the last two months. In September, we completed the acquisition of 274 units in Ostrava. The current transaction in Dresden-Freiberg is the largest transaction for us in terms of volume. We cannot disclose the exact amount of the transaction, but the value of the deal was over ten million euros, “said Martin Gillar, CEO and another of Czech Home Capital’s shareholders.
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The company plans to reach a portfolio of 2,800 apartments in the near future. It finances the expansion, among other things, with the help of bonds. In the Czech Republic, it has a portfolio spread from Ostrava to northern Bohemia. The company entered Germany last year.
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“Already with the first acquisition in Germany in 2020, we have shifted our acquisition attention evenly to the German and Czech markets,” added Gillar.
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Shopping spree
Rental housing has become a hit among funds and other institutional investors in the last year. Companies buy apartments not only in Prague, but also in other cities. For example, the Czech Housing Fund acquired apartment buildings in Ústí nad Labem for more than 50 million crowns in September. According to the consulting company BNP Paribas Real Estate, corporate investors have bought rental apartments worth around 2.5 billion crowns since the beginning of this year.
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The funds are interested not only in standing apartment buildings, but also in apartment buildings, which the developers have not even started to build yet. For example, a fund managed by Mint has concluded a contract with Metrostav Development for 200 rental apartments, which will be created as part of the Vysočanský mlýn project in Prague 9.
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