Prague Prime Homes
Participation Models
http://www.pragueprimehomes.eu/participation-models.html

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Contact

For additional information please contact:

Prague Prime Homes Management s.r.o.

Letenska 8

118 00 Prague

Email: office@pragueprimehomes.eu

Phone: +420 775 985 795

THE PRAGUE PRIME HOMES PARTICIPATION MODELS

An investment in a PPH project provides investors with the opportunity to become a co-owner in a specific real estate in Prague. The pooled investment structure of such a participation programme is a way to provide investors with the opportunity to invest as part of a group and therefore do not need the means to acquire a whole property.

PPH Management pools the investment amounts of the individual investors, to make an investment in a specific property in Prague, whereby the investment structure, the planned investment horizon and indicative returns defer from project to project.

Properties can be acquired either directly where the investors or a trustee are registered in the land register or by using a project holding company (SPV) that owns and holds only a specific property, and were the investors or the trustee are registered in the company register as owners of the project company which again is registered in the land register as owner of the property. 

The second main difference between individual projects is the holding period:

  • Properties might be acquired before refurbishment with the intention to undertake the refurbishment and afterwards to sell the individual units in the property. In this case returns are being generated from the development profit and the investment period for the investor will be approximately 2-3 years depending on the project.
  • Properties might be also acquired before refurbishment with the intention to lease them after refurbishment and sell the units only after a longer period. In that case investors receive ongoing returns from rental income with the potential of additional returns from a potential value appreciation until the time of the disposal.
  • In addition properties might be acquired also after renovation for letting purposes, where again investors generate ongoing returns from rental income with the potential of additional returns from a potential value appreciation.