20% pa sounds reasonable
It would definitely make sense to hold the asset for 5+ years to take advantage of the growth of this area for several key reasons including the train line and the capital gain. The only factor that would prevent this is if the rental market does not mature enough to allow a decent LTV upon completion (I would be looking to achieve up to 100% but dont want the rent to be significantly under mortgage payments!).
I paid CZK 43,000 psf in the Berounske Strane development which is city centre - this was valued at 47,000 psf.
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