Česká spořitelna is negotiating the transfer of the Reico fund to the Czech branch of Erste AM

Česká spořitelna is negotiating the inclusion of the Reico real estate fund into the structure of the Czech branch of Erste Asset Management. If these negotiations are completed, Reico will remain part of the parent Erste Group. For the fund's shareholders and employees, the possible transfer will not mean any change, announced Česká spořitelna spokesman Filip Hrubý.

According to e15.cz, Reico's investment company includes two retail funds, Reico ČS Nemovitostní and Reico ČS Long Lease. Its clients include retail and major institutional investors. The funds have premium properties in their portfolio, including the City Tower building in Prague's Pankrác district, Metronom Business Center in Nové Butovice, Centrum Bořislavka in Prague 6 and Nová Karolína shopping center in Ostrava.

The investment company Reico was established in 2006 in Prague as a wholly owned subsidiary of Česká spořitelna. It manages assets worth over CZK 38 billion in the Central European region, specifically operating in the Czech Republic, Poland and Slovakia.

The Reico ČS Real Estate Fund invests approximately 90 percent of its assets in completed and leased premium real estate, mainly office-type properties. The fund then holds at least a tenth of its money in ready financial assets to secure the payout of redeeming shareholders. The main sources influencing the performance of the Fund are rental income and any movement in the value of the properties owned.

Česká spořitelna is the largest bank in the country by number of clients, with 4.6 million at the end of March. The Austrian financial group Erste Group Bank, which owns Česká spořitelna, is a major company in the Central and Eastern European banking market.

Source: Česká spořitelna and CTK