FAQ

Retail funds are open to the general public. The minimum investment is lower than in qualified investor funds. In our retail funds (ZDR Public Fund and ZDR Industrial Fund), you can start with a one-time investment of CZK 10,000 (or the equivalent in EUR) or with regular investments from as little as CZK 200 (or the equivalent in EUR). Retail funds are legally required to keep 10% of their assets in liquid instruments and are not allowed to take on excessive debt. This makes them a less risky form of investment, suitable for a broader range of investors.

Real estate funds are investment vehicles that allow you to invest in various types of properties, such as retail parks, office buildings, shopping centers, residential complexes, or industrial properties. These funds pool financial resources from investors and channel them into the real estate sector.

Depending on how returns are generated, we distinguish between two types of real estate funds: the first invests in already completed properties and generates income from leases, while the second focuses on development projects and returns from property sales. While rental-focused funds offer more stable, long-term oriented returns, development-focused funds may deliver higher but also riskier returns, depending on the success of individual projects.

The returns from real estate funds are then distributed among investors in proportion to their share in the fund. This way, investors can participate in real estate profits without having to commit the large amounts of capital typically required to purchase properties or take on the risks associated with their acquisition and operation.

How can you navigate between the different funds and what criteria should you focus on when choosing? Read our article How to choose a real estate fund step by step. There, we have summarized all the key information that may help you when selecting the right fund.

Retail parks are typically single-story shopping centers, often located on the outskirts of cities. They are usually built on larger plots of land and feature simple architecture focused on functionality and customer convenience. A retail park consists of several smaller, independent stores, usually arranged around a large parking area.

Retail parks offer a wide range of shops in one place, are cost-efficient, and are often preferred for their convenient accessibility and broad selection. In our retail parks, you will also find the classic, well-established tenant mix. Most commonly grocery supermarkets, value-oriented stores, drugstores, pharmacies, electronics retailers, or pet stores.

A defensive, conservative strategy, which we apply across all our funds, focuses primarily on return stability and risk minimization. This type of investment strategy is suitable for investors who prefer long-term stable appreciation over more volatile returns. Our investment approach is built on long-term returns generated mainly from rental income of our properties. Instead of speculating on increases in property values, we concentrate on consistent and steady income from leases.

A qualified investor fund (ZDR QIF Fund) is intended only for investors who meet certain requirements. These include, for example, a minimum investment amount, which under Czech law is set at CZK 1,000,000 (or the equivalent in EUR), or proof of sufficient investment experience. Qualified investor funds are less regulated than standard retail investment funds. They may involve higher risks but also offer the potential for higher returns.

We focus on investments in long-term leased commercial properties. Through the ZDR QIF Fund and the ZDR Public Fund, we invest in regional retail parks of a value-oriented character with a high share of grocery stores. The portfolio of our third fund – the ZDR Industrial Fund – is focused on smaller-scale properties intended for production and storage.

Thanks to long-term leases with highly creditworthy tenants and a well-balanced tenant mix, these properties represent stable and long-term profitable investments. You can view the portfolio of all our funds on our website.

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Unfortunately, we cannot. Investments are always associated with a certain level of risk, and there is no guarantee that an investment will deliver the expected return. Performance is influenced by many factors, such as the performance of the underlying assets, macroeconomic developments, and market conditions.

However, our funds do have a defined target return that we strive to achieve. For the ZDR QIF Fund, the expected annual return is 7–9%. For the retail funds – ZDR Public Fund and ZDR Industrial Fund – the target return is 5–7% per year. In previous years, we have consistently exceeded these targets.

Nevertheless, please keep in mind that past performance does not guarantee future returns. Every investment carries a certain level of risk, which you should always take into account.

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Investments in our funds are arranged through your investment or financial advisor. You can also find us in the offering of reputable financial advisory networks. If you do not have your own advisor, please feel free to contact us. We will be happy to help you choose one.

The level of fees depends on the type of fund and its investment strategy. In real estate funds, you may encounter an entry fee, an exit fee, a management fee, or a performance fee. According to regulatory requirements, every fund must publish its fee structure on its website. This is also the case with us – all fees related to our funds are listed on our website in the Key Facts section of each fund.

ZDR Public Fund and ZDR Industrial Fund (retail funds):

• Entry fee – set by your financial advisor, up to a maximum of 4%
• Exit fee – not charged
• Management fee and performance fee – already included in the fund’s results and not charged separately to investors

ZDR QIF Fund (qualified investor fund):

• Entry fee – set by your financial advisor, up to a maximum of 3.1%
• Exit fee – not charged after 3 years from the acquisition of investment shares
• Management fee and performance fee – already included in the fund’s results and not charged separately to investors

The target return we publish for each fund is already net of all fees, except for the entry fee.

In real estate funds, returns can generally be generated in several ways – from the sale of properties, from development projects, from rental income, or from capital appreciation, i.e. the increase in market value of the properties.

Our strategy focuses primarily on rental income, which serves as the basis for planning the fund’s future returns. In our segment, it is common to enter into long-term lease agreements with tenants. This provides us with stable rental income, often secured for 10 years ahead.

Returns can also grow through planned rent increases driven by indexation, optimization of property use, or cost reductions in the operation and maintenance of properties.

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The minimum entry investment depends on whether you wish to invest in a qualified investor fund or a retail fund. If you are a qualified investor and want to invest in the ZDR QIF Fund, the minimum amount set by law is CZK 1,000,000 or EUR 125,000.

With investments in the retail funds – ZDR Public Fund and ZDR Industrial Fund – you can start with a much smaller capital. The minimum investment is either CZK 10,000 (or the equivalent in EUR) as a one-time investment, or from CZK 200 (or the equivalent in EUR) on a regular basis.

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Practically anyone can invest in the ZDR Public Fund and the ZDR Industrial Fund. All you need to do is contact your investment or financial advisor. You will set an appropriate investment horizon and the amount you wish to invest. Either as a lump sum or through regular contributions. No special knowledge or experience is required.

By contrast, the ZDR QIF Fund is open only to more experienced investors with greater capital who can demonstrate a deeper understanding of financial markets.

Whichever fund you choose from our offering, one thing always applies: we take care of the entire process of acquiring, managing, and leasing properties for you. You invest, we make your money grow.

At the beginning, we also recommend reading our article How to choose a real estate fund step by step.

Real estate, by its nature, is considered a long-term asset. Therefore, a medium- to long-term investment horizon is also recommended for real estate funds. The reason is that fund managers reinvest investors’ capital into the acquisition of new properties, which subsequently increases the overall return of the investment portfolio. The process of purchasing and integrating properties takes time. For optimal growth and appreciation, it is recommended to hold the investment for at least 5 years.

Although it is possible to exit the fund on a monthly basis – usually at the end of the month – it is important to keep in mind that real estate funds are not suitable for short-term speculative investments. Fees associated with the investment also play a role. Before investing, carefully consider all potential risks, define your investment horizon, and think through how much capital you are willing to invest.

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In addition to the growth share class, the ZDR QIF Fund also offers a dividend share class – both in CZK and EUR. Dividends are distributed once a year. Most investors prefer to invest in the growth share class. In this class, the return is credited monthly directly to the value of your investment shares. An additional benefit of the growth class is that, after three years from the start of the investment, the return is exempt from withholding tax, whereas dividend distributions are subject to a withholding tax, currently at 15%.