Michal Sotak (C&W) led a panel with David Rusňák, (DRFG), Robert Kubín (Amundi), Dušan Sykora (REICO), and Peter Bečar (Crowdberry)
Editorial
The rhetorical question we asked at ThePrime’s first Data Summit was whether Czech real estate funds have been overpaying for assets. Local capital’s domination of the market in recent years has been absolute, making this a pretty fundamental issue. It’s not as if any of the big players on stage were going to admit in front of a (big) audience that they were paying too much. But I found the nuance in a range of answers enlightening.
In his opening presentation, Michal Sotak deconstructed the notion that Czech funds have access to cheap equity. Admittedly, I’ve long had a nagging suspicion that the cultural obsession with real estate makes retail investors here (even qualified ones) less demanding. Less demanding about returns, less discerning about fund structures, and less strict about valuations, and the way they’re arrived at.
But Sotak then took things in a different direction, claiming that the cost of distribution for Czech funds is actually quite expensive, reducing the buying power of the equity. More specifically, he claims, distribution costs for Czech funds run between 15% and 25% of collected capital in the first year. That’s a structural drag that compresses net returns before a single lease payment arrives. He estimated that a fully online distribution platform could be built for CZK 150 million, but that this is just a fraction of what the industry collectively spends on branch networks and intermediaries.
Then, going on the offensive, Sotak made the case that Czech real estate, in particular Prague’s office and industrial sectors, are among the best performers in Europe.
In his macroeconomic round-up, Mark Robinson (Encor Wealth Management) warned that the most recent Gulf war would inevitably drive up inflation. Bringing it back to property, he provided evidence about how well Czech property had performed in this decade’s previous inflation crises.
In a fascinating panel discussion that preceded the post-event mixer, David Rusnak, (DRFG), Robert Kubin (Amundi), Peter Bečar (Crowdberry) and Dušan Sykora (REICO) had a frank exchange on the prospects of Czech RE funds. If anything, they seemed impatient with lingering suspicions that their business models are based on optimistic valuations.
The more interesting question, to them, was how many of the 37 funds currently operating will still exist in 10 years. The guesses ranged from a maximum of 15 to as few as 5. “Every day, someone else wakes up and thinks it would be a great idea to set up a new real estate fund,” said one speaker. All agreed the situation is unsustainable.
In other words, rather than asking if they‘re paying to much, the question is rather how many will be able to pay top dollar for assets in the long-term.
RE News
REICO LONG LEASE (Erste Asset Management) has bought The Mill on Mlynské nivy in Bratislava from Immocap — the fund's first office asset and one of the larger Slovak deals of the year. The Mill offers 25,000+ sqm, sits 100% leased ever since it was completed. Immocap stays on as property manager of The Mill and takes over management of REICO's existing Slovak portfolio — Forum BC and Park One. REICO CEO Dušan Sýkora says "further joint transactions" lie ahead. REICO manages CZK 55 billion across CZ/PL/SK; LONG LEASE now holds eight assets (3 CZ, 3 PL, 2 SK).
CPI Europe has sold STOP SHOP San Fior and STOP SHOP Terminal Nord Udine, closing out its Italian retail park adventure. The combined GLA runs to nearly 60,000 sqm. San Fior was built from 2017 – 2019 while Terminal Nord Udine opened 2008 and was acquired in 2022. Board member Pavel Mechura says proceeds will go towards debt reduction and STOP SHOP expansion in CEE. Four are already underway in Croatia, with Serbia and Hungary lined up for 2027–28.
In 2025, the gap between indicative demand for Czech industrial real estate and signed leases (2.2 to 2.1 million sqm respectively) has converged for the first time since 2021. Cushman & Wakefield says the volume of space tenants were looking for between 2021 and 2023 surged to 2.9 million sqm. But a combination of geopolitical caution, limited space and slower approval cycles cause actual take-up lagged. The trend finally stopped last year, with 45% growth in signed deals. Jiří Kristek writes that companies “stopped relying solely on cautious scenarios and began closing projects prepared in previous years."
PSN will convert a former inter-city telephone exchange on Fibichova street in Prague 3 into 116 premium rental apartments. Work starts summer 2026, with completion scheduled for 2028. Jakub Cigler Architekti is handling design duties. Amenities include concierge, wellness, and a shared roof terrace with sauna.
Who says ChatGPT is killing off jobs? New research by Savills on AI adoption since 2024 found only a weak to moderate negative correlation with office-based employment growth. In the Czech Republic, business AI adoption stands at approximately 18%, while office-based employment grew at around 2% per annum between 2024 and 2025. That’s above the EU average. "Current data does not support the idea that AI is reducing demand for office-based roles," says Lenka Pechová (Savills). In fact, one ECB report found that firms with significant AI use are 4% more likely to hire.
J&T and Logport have acquired a 37,000 sqm industrial site on Spojovací street in Prague 3. The JV partners bought a 100% stake in LUSIMA AD Property s.r.o. from a selling group that included JSK Investments and Notino Limited. Colliers brokered the transaction. Back in the 1970’s, the site housed Autodružstvo Praha. The buyers are expected to redevelop the site whose inner-city location will be the primary attraction. Legal advice was provided by Tauber Špačková, Axialis Legal and HLADKY.LEGAL on the sell side, and White & Case and OHBS for the buyers.
Funds led by Apollo Global Management have agreed €165 million in financing for Crestyl Group and its Polish resi development subsidiary Spravia. Griffin Capital Partners came in as co-investors in the arrangment. Rothschild & Co advised on finance; Allen Overy Shearman acted for Apollo; White & Case acted for the borrowers. Spravia has delivered nearly 25,000 units across Warsaw, Gdańsk, Gdynia, Poznań, Wrocław and Kraków.
Pražská developerská společnost launched two architectural competitions for a pair of residential blocks (Project 5 and Project 6) at Nové Dvory in Prague 4. Applications close 11 May, with results due in August 2026. A maximum of 15 participants will be maintained per competition. Acceptance into the process gets you CZK 115,000 worth of expense reimbursement. Winners do even better, as they’ll secure follow-on public contracts valued at CZK 140–145 million per competition. With roughly 1,000 apartments to be built in the two blocks, the project has the potential to make a dent in Prague’s resi supply figures. On the affordability front, they should come in at around 30% below commercial construction.
Finally, in resi supply news, Skanska has launched sales on the next phase of its Emila Kolbena quarter in Vysočany — 272 apartments across three buildings. Construction starts H2 2026, completion 2029. The first sales tranche amounts to 120+ units, with the average price set at CZK 165,000/sqm. Designed by Expert Architects and Jakub Cigler Architekti, the project sits about a minute’s walk from the Kolbenova metro. The masterplan totals 1,054 apartments across 51,000 sqm.
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