Silverline

Real Estate

Building wealth on solid foundations.

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Fund in
figures

Performance of investment stock classes (CZK)

Investment stock class A
Investment stock class B
Investment stock class E
10.0 % p.a.
12.1 % p.a.
n/a
annualized performance since launch of investment stock class
15.4 %
9.1 %
n/a
performance since launch of investment stock class

Assets under management (mil EUR)

13 mil EUR
Assets under management
41 mil EUR
Gross development value of current projects

Why to invest
in residential
real estate
development

  1. HIGH RETURN

    In selected attractive markets, developers can realize return on equity of ~25% p.a. before tax, significantly higher than returns from residential real estate leases or other business activities with comparable risk profiles.

    Czech market is in this respect highly attractive: due to very low intensity of new constructions over last decade, a significant deficit of supply was incurred. This grants a runway of opportunities for residential developers at least until 2030. 

  2. LOW RISK

    Due to strong and stable demand (population inflow, urbanization, declining average size of household) and lack of supply, commercial risks of residential development in Czech Republic are limited.

    Also, developers own building plots on their balance sheets, one of most stable asset types and a safe heaven during economic crisis. Risks stemming from the development process can be mitigated by rigorous management.

  3. STRONG SOCIAL IMPACT

    Residential development solves problems with insufficient housing stock, which is a common local or even society-wide challenge. Few other activities have such a direct and broad impact on society.

What makes Silverline Real Estate unique?

  1. STATE OF ART ANALYTICS AND PROJECT MANAGEMENT

    Excellent analytics is leveraged mainly during project selection: on monthly basis, we are reviewing lower tens of opportunities, jointly with architects designing options for the final solution and discussing these with authorities. Once done, robust business cases are calculated. As a result of this process, we invest only in one of mid tens of opportunities, such that all risks are manageable, and the project comes with outstanding margin. Each project is then managed directly by one of the founders for better control over its budget and timeline.

    With this ways of working, we systematically deliver double digit net returns, currently highest in the residential segment in the Czech Republic. Further, all our returns are “preferred to investors” (i.e. only once the fund reaches targeted returns, founders are remunerated).

  2. INTERNATIONAL MINDSET

    Silverline Real Estate team has long-term experience with international investments. Once diversification within Czech Republic will be completed, we will leverage our experience and international drive and enable our investors to benefit from selection of most attractive markets and projects within Europe and North America.

News

Introduction of the fund:

Downloads:

Information handout

News from Silverline:

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Quarterly results Q3 2023

We closed the third quarter of 2023 with double...

References

Greenfield development in proximity to growing cities

We search for and invest in land already approved for residential development. While current projects are all in proximity to Prague, we also look out for opportunities in other growing cities in Central Europe.

In Phase 1 of the development, we secure land zoning decisions, building permits, develop utility networks, driveways to secure full readiness of the resulting building plots for construction. In potential phase 2, we construct the family or apartment houses as a turnkey project.

Renovation of apartment houses in regional capital cities with add-on opportunities

Based on analytical rigor & previous experience, we are looking for real estate in centers of major cities in CEE region such that could be significantly expanded by construction of new floors or developments on neighboring building plots.

Purchased assets might be both outdated apartment houses or sub-prime offices and are often mispriced. Typically, we completely renovate the asset and extend original floor space significantly.

Development of leisure apartments in prime resorts

Czech market is seeing consistently strong demand for mountain apartments, especially in prime locations. As the supply of such units is very limited due to lack of suitable land, such developments are scarce which is also reflected in selling price.

We are looking mainly for suitable elderly housing lodges in top locations that will be under our management fully renovated and remodeled into prime-resort apartments, likely with extension of original floor space.