Croatia gets first open-ended CRE investment fund

Croatian investment company InterCapital has launched InterCapital Real Estate Fund Alfa, Croatia's first open-ended commercial real estate investment fund.

Intercapital

The Croatian Financial Services Supervisory Agency (Hanfa) has approved it as an alternative investment fund with a private offering.
The fund will target a €500 mln portfolio by investing in prime Croatian and Slovenian commercial properties like shopping malls, hotels, offices, and logistics centers.
Initially focused on individual investors (with a minimum €53,000 deposit for qualified investors), the fund plans to attract institutional investors as it grows, aiming for an annual net return of 8-9% after fees. This return is presented as a less volatile alternative to shares and a less burdensome option than apartment rentals.
Unlike other Croatian real estate funds focused on development, InterCapital's strategy emphasizes managing income-generating properties, primarily through rent growth. From 2027, investors can sell up to 20% of their shares annually, providing liquidity without the costs of independent sales.
The fund has already acquired a stake in City Center One Split shopping center and the Bonavia hotel in Rijeka, the latter being leased back to its current owner after renovations.
InterCapital highlights the fund as a crucial step in enabling domestic investors, such as pension funds and individuals, to participate in Croatian real estate ownership, balancing foreign investment and strengthening the country's financial independence.