For real estate investments or financing, a technical assessment is absolutely key

Upvest and Savills are working together on projects related to investments in the form of a stake in an asset class called real estate private debt and private equity. Savills provides technical due diligence for these types of real estate projects, which are (along with commercial, legal or financial pre-investment due diligence) absolutely crucial for this type of investment. After evaluating all aspects and the results of external reviews, Upvest adjusts the contractual relationship in the context of identified risks and implements or rejects the investment plan in case of identification of insurmountable risks. Upvest has so far financed 3.4 billion crowns in 52 investment projects (with a total value of 23.2 billion crowns) and paid out 1.6 billion crowns to investors.

“On average, our projects bring a higher yield than the current inflation and compete with other investment instruments in the long term. A technical assessment of a residential or commercial property is absolutely necessary for the correct setting of the investment strategy or the structure of the financing provided. All findings of technical assessments must be properly treated, if correction is not possible, we withdraw from the plan,” he says Petr Volný, Chief Technical Officer at Upvest.

“We have collaborated with Upvest on approximately twenty projects, primarily in the residential and retail sectors. As part of the technical inspection, we will reveal the real condition of the object and the risks associated with the project, whether it is an assessment of the technical condition of the building, an estimate of the costs of repairing defects, an assessment of construction budgets or future renovations. Successful jointly implemented projects include, for example, OC Central Jablonec, Nagano Park and residential projects of the company Finep.” complements Jan Jurčiček, Head of Building & Project Consultancy at Savills.

Currently, Upvest concluded an investment in the form of a participation in a mezzanine loan for the office property Opatov Office Park, where the Savills technical assessment played a crucial role. “The correction of technical findings was included in the contractual documentation, and the owner of the property is obliged to restore the technical defects to a perfect state within a predetermined deadline. This particular investment opportunity was offered to investors with a net expected return of 9.0 to 9.3% pa,” supplies David Musil, Chief Executive Officer at Upvest.

Savills also provided complete project management for Upvest during the move to new office premises at Jindřišská 16. As part of the renovation of the boutique office, an attractive space was created that is comfortable both for everyday work and for meetings with prestigious clientele.