Sell me your real estate, but stay in business. This is the main message to businessmen from the investor Igor Fait, who is the founder of the Brno group Jet Investment and, according to Forbes, is also one of the 100 richest Czechs. The seasoned investor, who has so far focused and focuses mainly on buying, managing and then selling companies, will step into a slightly different field. In addition, which does not yet have an investment tradition in the Czech Republic.
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“We know from our own experience that effective asset management can become a burden for a company, especially when it involves too much money or excessive effort and time. The thoughtful sale of real estate can therefore be a welcome financial injection into the company’s core business and a major impetus for the development of the core business, “says Igor Fait.
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Igor Done (54)
Founder and co-owner of the investment group Jet Investment.
He started in the 1990s as a stockbroker.
He invests in art, has a good reputation, has a house in Mallorca.
He owns the Fait Gallery in Brno, supports the Good Angel or Vision 97.
Forbes estimates his fortune at 3.2 billion crowns.
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The fund called Jet Industrial Lease therefore intends to buy the real estate, pay the money to the current owner for it and at the same time start collecting rent from him. “A model where the real estate background of companies is owned, managed and developed by a real estate specialist, while the business owner is only engaged in business, is quite common west of us, for example in Germany or Austria,” comments Libor Šparlinek, Jet Investment partner abroad.
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At the same time, he points out that, from a tax point of view, the building is depreciated for up to 50 years and the land is not depreciated at all. “At the same time, the rent can be used as a cost item of 100 percent in each accounting period. Abroad, many companies have already understood this and prefer leasing to ownership, ”adds Šparlinek.
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From the beginning of November, Jet Investment will start attracting co-investors who will invest their money in the fund. In the first year, it wants to raise one billion crowns for the purchase and development of industrial real estate, mainly from Czech investors, and within five years it wants to invest another roughly 14 billion crowns.
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The minimum amount of the deposit is 5 million crowns, lower investments will be possible through the partner investment group Conseq. The expected annual return of an open-end fund with an investment horizon of 5 or more years should be around 8 percent, of course it is not guaranteed in any way.
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However, the four Jet Investment partners themselves, including Igor Fait, will contribute to the investment in the fund in the first year with a deposit of about 15%. In other words, they will not only be in the position of administrators, but they will have their own money in business. The fund’s vision is to become a major property owner throughout the union. It will primarily start looking around the Czech Republic and neighboring countries.
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