“As part of the approved bond program, we plan to issue primarily five-year and seven-year bonds with interest rates of between five and six percent per year. Due to increased demand, we also do not exclude issues denominated in euro, but lower interest rates can be expected, ”said ČMN co-owner Radek Stacha. The company will manage the emissions itself.  ČMN already has experience with bonds. With the help of this capital, the Group purchased Nestlé headquarters in Prague-Modřany or a building on Wenceslas Square . 

“Bonds for real estate projects have been commonplace lately. However, investing in bonds is lending money like any other and carries the same risks. The CNB does not assess the solvency of the issuer or its ability to repay such debt in the future, ”commented attorney Tomáš Běhounek, partner at BNT attorneys in CEE.  At the end of June, the Czech-Moravian real estate had a value of CZK 3.5 billion in its real estate portfolio. The latest addition to the company is the newish Crystal office center near Prague's Želivského metro station. 

“We are currently working on the acquisition of several properties. The value of each of them is above one billion crowns. The target for 2019 is a total assets of more than seven billion crowns. By the end of the year, we plan to complete two or three additional acquisitions, ”added Stacha, the head of ČMN.  According to Cushman & Wakefield, Czech investors are among the largest buyers of commercial real estate in the first half of this year, according to Cushman & Wakefield. They were closely followed by investors from South Korea .

Source: www.e15.cz