Upvest and Savills cooperate on projects related to investments in the form of shares in a class of assets known as real estate private debt and private equity. Savills provides technical due diligence for these types of real estate projects, which is, along with commercial, legal or financial pre-investment due diligence, crucial for this type of investment. After evaluating all aspects and results of external reviews, Upvest adjusts the contractual relationship in the context of the identified risks and either implements or rejects the investment project if insurmountable risks are identified. Upvest has so far financed CZK 3.4 billion within 52 investment projects (with a total value of CZK 23.2 billion) and has paid out CZK 1.6 billion to investors.
“Our projects yield higher returns on average than current inflation rates and stand as competitive alternatives to other investment instruments in the long run. A thorough technical assessment of a residential or commercial property is paramount for devising the right investment strategy or financing structure. All findings from these assessments must be diligently addressed. If a remedy isn’t feasible, we opt to withdraw from the project,” says Petr Volný, Chief Technical Officer at Upvest.
“We have collaborated with Upvest on approximately twenty projects, mainly in the residential and retail sectors. During the technical due diligence process, we uncover the actual condition of the property and associated project risks, whether it involves assessing the technical condition of the building, estimating repair costs for defects, evaluating construction budgets, or planning future renovations. Successful projects we’ve jointly executed include Central Jablonec Shopping Center, Nagano Park, and residential projects by Finep,” adds Jan Jurčíček, Head of Building & Project Consultancy at Savills.
Upvest has recently closed an investment in the form of participation in a mezzanine loan for the Opatov Office Park, where Savills’ technical assessment played a crucial role. “The rectification of the technical findings was embedded in the contract documentation and the property owner is obliged to bring the technical defects to a perfect condition within a predetermined timeframe. This particular investment opportunity was offered to investors with a net expected return of 9.0 percent to 9.3 percent p.a.”, adds David Musil, Chief Executive Officer at Upvest.
Savills also provided Upvest with comprehensive project management services during their relocation to new office spaces at Jindřišská 16. As part of the boutique office renovation, an attractive space was created that is both comfortable for day-to-day work and suitable for meetings with prestigious clients.
