ZDR

Record performance in 2025 sets the stage for a resilient 2026

Date: February 24, 2026

ZDR Investments Group CEO David Čubr and Business Director Kamila Lohniská reflect on the key milestones that shaped 2025 for ZDR Investments and share their outlook for 2026.

David, what do you think awaits us in the commercial real estate market?

First, let’s briefly look back at 2025, which was very successful from the perspective of investment activity. On the Czech market, assets totaling €4.2 billion were transacted. The trend of recent years continued, with an incredibly strong dominance of Czech capital, which stood behind the vast majority of transactions — reportedly 80% or more.

Invest Volumes by Sector. Source: CBRE
According to CBRE Research, retail was the largest investment segment in the Czech market in 2025, with €866 million invested and a TTM volume of €1.2 billion. A 75% year-on-year increase highlights renewed investor confidence in the sector.

A similar development is expected in 2026 — at the very least, the continued dominance of Czech capital and investment activity at around €3 billion or more. From the perspective of transaction activity, the Czech market was also significant within the CEE region. If we look at how much it contributed to overall European or Central European activity, its share was very high.

What are our acquisition plans and which markets are we targeting?

Over the next 12 to 18 months, we expect transactions exceeding EUR 130 million. These investments will be directed toward markets where our funds are already active, with Austria representing a significant share. It is fair to say that Austria is currently a market where we see particularly attractive opportunities.

Why Austria specifically?

There are several reasons. One of the key factors is our established strategic partnerships with local developers. We have been active in the Austrian market for some time and have built strong market knowledge and operational expertise.Austria is a stable and transparent market, which aligns well with our long-term investment strategy. In addition, the yield profile has become increasingly comparable to that of the Czech Republic. Historically, Austrian assets were relatively more expensive, but the yield gap between the two markets has gradually narrowed. Under current conditions, allocating investor capital to Austria therefore makes strong strategic sense.

What trends will shape convenience retail in 2026?

We expect the real assets landscape to be shaped by macro stabilisation, supported by easing interest rate pressure and improving financing conditions.

Physical retail is leveraging prime locations and everyday convenience, while modernising its operating model to perform in a digital-first era (e.g., click & collect) and broadening its function beyond pure shopping.

We expect continued expansion of services (healthcare, beauty, fitness, food & beverage, parcel delivery and other convenience-led tenants), which helps assets become local community hubs and strengthens footfall resilience. A key part of this ongoing modernisation is ESG adaptation.

We already see this clearly in our portfolio: during 2025, we delivered multiple PV installations across our retail parks and advanced BREEAM certification initiatives. In December, we also opened a large Tesla Supercharger hub at one of our Czech assets, alongside several additional EV charging points across the portfolio.

ZDR Master Fund – Eight Years of Consistent Performance in 2025

Return over the 12 months as of 31 December 2025:

  • 8.10% (A Class, CZK)
  • 8.22% (C Class, EUR)

Thanks to systematic tenant management and proactive lease extensions, the fund achieved a significant increase in WAULT last year — one of the key indicators of portfolio stability. For grocery chains, which account for nearly one-third of the total lettable area, the average remaining lease term exceeded 12 years.

In 2025, the fund significantly expanded its portfolio with the acquisition of its largest property in the Czech Republic — the Aventin Shopping Jihlava retail park. Towards the end of the year, the fund further strengthened its presence in Austria through two major acquisitions: the EUCO Wolfsberg project and the Eugendorf retail park, building on its long-term footprint in the country.

Eugendorf retail park
Eugendorf retail park
Find out more about our portfolio: The ZDR Master Fund is available to Singapore-based investors through the Singapore-domiciled ZDR Investments SG VCC feeder fund. Investors can choose between two investment options: a Growth Class focused on long-term capital appreciation and a Dividend Class designed to provide regular income distributions. This feeder structure enables Singapore investors to access a diversified portfolio of European retail assets within a familiar and regulated investment framework.
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