Jet Investment Is Launching A Property Investment Fund

Abbie Ackerly
December 09, 2020

Jet Investment is launching a new fund, Jet Industrial Lease, which will concentrate on property investment.

In the first year, Jet Investment aims to collect CZK 1B from private investors to buy and develop industrial and other properties. During the next 5 years, an additional CZK14B is projected to be raised. The fund’s subscription period begins on 1 November.

The Jet Industrial Lease Fund for eligible investors will concentrate mainly on the acquisition of properties from industrial firms, particularly credit-worthy ones with a long-term business outlook.

Managing Director Igor Fait said they have been managing and developing industrial firms for over 20 years. During that period, they saw that the industry provides tremendous opportunity beyond its core market, especially in the field of property management and development. They know that successful asset management may be hard for a firm, particularly if it needs too much capital or too much effort and time. On the other side, the thoughtful selling of its property can be a good financial infusion for a firm and a significant boost to the core business’s growth. Moreover, Jet Investment can precisely determine the tenant’s prospects and take into account their needs in the transfer.

The team thinks it came across a great arrangement for qualified investors, which will get high value with acceptable risk and the Czech industrial business.

It is very frequent in Germany or Austria to leave ownership, management, and production of the asset to a property specialist. While the owner of the company is engaged just in the business. From a tax perspective, the asset is depreciated for up to a maximum of fifty years, and the property is not depreciated. However, the rent can be used as a cost item in every accounting period. Overseas, several businesses have realized this and prefer rent to own an asset.

Pavel Drabina, a new member of the Jet Investment team in charge of overseeing the property fund, assumes that the fund will spend around CZK 200–300M on 5 properties in Central Europe over the first year.

They’re at the moment reviewing about thirty enticing acquisition possibilities, mostly from the industrial sector. Real estate investment is not replaceable in an investor’s portfolio, and not only as a buffer for inflation.

The fund’s subscription period starts on 1 November with a min deposit of 5 million crowns; lower contributions will be possible via the Conseq partner investment group. The estimated return of the open-ended fund with an investment period of 5 years or more is anticipated to be 8% percent each year. Four Jet Investment Partners, as well as Igor Fait, are going to take part in the first year with a fifteen percent deposit.

They seek acquisition chances mostly from the industrial sector, but retail and office development, too, and though they want to target the Czech Republic and Slovakia, they are also focusing on Germany, Austria, and Poland.

Jet Investment opens the Jet Industrial Lease fund following the most profitable divestments in the Jet 1 fund portfolio in recent times. For the Jet 2 fund, in which 170 private and institutional investors have invested 4B CZK, the Jet team so far got the TEDOM group, the firm 2 JCP, and is preparing a minimum of a couple of more acquisitions by the end of 2021.

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