Penta launches Czech healthcare infrastructure fund with a 7% yield

The Penta investment group is expanding its range of funds: the Penta Healthcare Infrastructure Fund, which will invest in medical infrastructure and real estate, has been launched under Penta Fund CEO Tomáš Chochmeister. The target yield is 7% a year.

The idea behind the fund is simple and rests on demographics. The number of Czechs aged 80 and over is forecast to grow from roughly 427,000 in 2025 to 940,000 by 2050. That means demand will also grow for medical and social services, and for the quality buildings in which they are provided.

“An ageing population will keep increasing the need for medical and social care in the coming years, and with it the need for quality infrastructure. The new fund will let investors take part in its development and, at the same time, naturally broaden their portfolio with another type of real asset,” Tomáš Chochmeister explained.

The group also has its own operating business here: its structure includes the medical and long-term care provider Penta Hospitals International, which runs 53 hospitals and 62 outpatient clinics.

The fund’s portfolio already includes 22 properties in Czechia, among them the building of the Dr. Pírek clinic in Mladá Boleslav. Income will come mainly from long-term leases: contracts with operators are signed for 25 years, and the yield may grow together with property values.

The fund’s investment horizon is four years. It is designed for retail, affluent and institutional investors, and for private investors the entry threshold is symbolic: from CZK 500.