Fund Name

F4REI k.s.i.l. Fund

Fund Sponsor

FUND 4 REAL ESTATE INVESTMENTS s.r.o.

Fund Type

Fund pursuant to §15 of the Law on Investment Companies and Investment Funds (ZISIF)

Legal Form

Limited Partnership for Investment Certificates

Nature of the Fund

Private equity

Investment Targets

Small- and medium-scale developer and real estate projects, securities linked to developer and real estate projects.

Investment Situations

Problematic projects and real estate with a purchase price significantly below the market price. Preferred purchase price, including project costs, 75 – 250 million CZK (Kč). Opportunities stemming from non-standard sales under a time constraint (rapid acquisition), including distressed assets.

Types of Investments

Acquisition of business shares. Acquisition of real estate. Leveraged buyouts – the costs of acquisition price are mostly financed by using external debt financing, and to a lower extent by using equity capital.

Sources of Asset Growth

Realization of residential developer projects for subsequent sale. Realization of developer projects for partial lease. Optimization of the financial structure. Approach of a strategic investor. Development of commercial protentional.

Investment Horizon

4 and more years.

Fund Duration

Unlimited.

Type of Security

Security in series pursuant to § 172 paragraph 1 of the Law on Investment Companies and Investment Funds (ZISIF).

Minimal Investment Amount

*General partner (administrator) reserves the right to decide on a lower minimal investment amount based on the current market situation. Minimal investment amount cannot, however, be any lower than 5 million CZK.

Target Value of Assets

750 million CZK and more

Target Profit

11-15% annually.

Entry Fee

Maximum of 3%.

Fund Management Fee

2% per annum of the fund’s assets.

Performance Incentive

30% from a 8% p.a. return, 45% from a return above 15% p.a.

Termination of Investment Participation

By a written notice of withdrawal from the fund, with a notice of 6 months.

Exit Fee

In accordance with the investment horizon of the fund: amounting to 30% of the current value of the investment share in the first two (2) years from the issuance of the corresponding investment certificate, respectively 15% of the current value of the investment share in the third and fourth year from the issuance of the corresponding investment certificate.