ZDR
Active Portfolio Management: How We Enhance Property Value Over Time
We take a hands-on approach to every asset, tenant relationship, and portfolio decision — working systematically to grow value, strengthen stability, and build resilience against market fluctuations. Active portfolio management is a cornerstone of the ZDR Investments philosophy. Here’s how it works in practice.
What Active Portfolio Management Means — and Why It Matters
Active portfolio management is the strategic, ongoing process of optimising the composition and operations of a real estate portfolio to maximise returns. For us, that means we don’t simply hold properties — we continuously work to improve them. We proactively manage tenant relationships, optimise both operating costs and revenue, respond to shifts in the market, regulation, and tenant needs, and deliberately build long-term asset value.
Unlike a passive buy-and-hold approach, active management requires deep expertise, data-driven decision-making, clear strategy, and day-to-day operational involvement. This is precisely where we create added value for our investors.
- Property strategy: A passive approach relies on long-term ownership as the primary driver of returns. An active approach develops each asset’s full potential.
- Tenant management: Passively, lease matters are addressed only as expiry approaches. Actively, we maintain ongoing communication and pursue proactive lease renewals.
- Income stability: Passive returns are more exposed to market movements. With active management, cash flow tends to be more stable and predictable.
- Occupancy: Can fluctuate in a passive portfolio. We keep it consistently optimised at high levels.
- ESG & sustainability: Often treated as a secondary concern in passive strategies. For us, it is integrated into daily portfolio management.
- Value creation: Passive value moves largely in line with the market. Active management drives value growth beyond market trends.
“Our goal is not merely to own a portfolio, but to develop it over the long term. Active management is how we protect and systematically grow the value of our investors’ capital.”
— Radek Hladký, Partner, ZDR Investments
How We Work With Our Portfolio
We maintain our portfolio in a condition that keeps it attractive — to tenants, to the market, and to potential future buyers. Here’s what that looks like in practice.
1. A Proactive Acquisition Strategy
Active management doesn’t begin after a purchase — it starts with the selection process itself. We systematically source investment opportunities across multiple European markets, focus on retail parks across Central Europe, diversify geographically by asset size and tenant mix, and evaluate every acquisition not just on current financials but on long-term potential. This keeps our portfolio in a constant state of evolution.
2. Lease Management
Lease management — the deliberate, structured management of lease agreements over time — is one of our most important tools. Since our fund income is derived primarily from contracted rent, we can forecast revenue far into the future.
We actively negotiate lease renewals well ahead of expiry. In the past year alone, we secured early renewals with key tenants occupying approximately 21% of the portfolio’s total lettable area. As a result, we extend the portfolio’s WALE, reduce the risk of income gaps, and increase the portfolio’s attractiveness to investors and financing banks alike.
This approach enabled us to extend WALE from 5.9 to 7.6 years — significantly strengthening income stability and predictability. Active management consistently delivers more long-term value than a passive, buy-and-hold approach ever could.
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3. In-House Facility Management
We manage our properties through our own dedicated facility management team, particularly in the Czech Republic and Slovakia. Rather than relying solely on external contractors, we keep critical operational know-how within the group. We have detailed knowledge of the technical condition of every building, can respond quickly to operational issues, plan maintenance and capital expenditure efficiently, and maintain direct, effective communication with tenants.
The result: higher operational efficiency, lower risk of unexpected costs, and properties maintained to a high standard over the long term.
4. Sustainability as an Integral Part of Operations
We don’t treat sustainability as a separate initiative — it’s woven into how we manage the portfolio every day. Sustainability matters to us not only from an ethical standpoint, but because it makes strong economic sense. We incorporate green lease clauses, monitor energy and water consumption, pursue renewable energy sourcing, work towards BREEAM certifications, install photovoltaic systems on rooftops, conduct environmental audits, and collaborate with tenants to reduce their footprint.
Case Study: Topoľčany Retail Park — Optimising the Tenant Mix
We acquired the retail park in Topoľčany, Slovakia with a clear plan to optimise its tenant mix and improve key financial metrics. Following the acquisition, we relocated dm drogerie and CCC stores, expanded the JYSK unit, and filled the remaining capacity with TEDi.
The results speak for themselves: rental income increased by over 29%, property value rose by 11%, occupancy improved from 87% to 100%, and WALE extended from 3.9 to 6.0 years. This is one clear example of how active portfolio management has a direct, measurable impact on both income and asset value.
Consistent Care Delivers Consistent Returns
The combination of proactive tenant engagement, in-house property management, strategic acquisitions, and an embedded approach to sustainability produces a single outcome: a portfolio that maintains performance, stability, and value growth over the long term.
This is why we consider active portfolio management one of the core pillars of our approach to real estate investing.
In a market that’s constantly evolving, standing still is not a strategy. At ZDR Investments, we believe that an active, hands-on approach is the path to sustainable growth and reliable returns.
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