The third fund of the ARETE group has acquired a modern production and storage complex with development potential near Prague and is now preparing for further new construction. The investment reached almost EUR 10 million
The third fund of the ARETE Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe completed in July the acquisition of a production and storage facility near Beroun, 20 km from Prague. This is the acquisition of a complex used for the production and storage of the Czech company Hronovský s.r.o., which was founded in 1990 and is one of the leaders in the field of cable assembly production, machining on CNC machines, pressing of plastic components and assembly of mechatronic components. The financial volume of the transaction exceeded almost EUR 10 million. “The basis of our investment strategy is the diversification of the real estate portfolio in the fund. For a long time, we have been striving to purchase a property in the wider vicinity of Prague, which would not only bring immediate rental income, but also have free land available for new development. Thanks to its location on the D5 motorway, between exit 28 and exit 22, the location offers immediate development potential. The current tenant has a quality international D&B rating of 2A1. An important factor for us is that the tenant is interested in operating in the locality for a long time, which is confirmed by an extensive investment program into the latest technologies. We are pleased to welcome company Hronovský to our portfolio of premium tenants, “said Lubor Svoboda, co-founder of the ARETE Group. “Above-standard equipped industrial complex completed in 2005, which has almost 14 thousand sqm of leasable area with the possibility of expansion by another almost 12 thousand sqm. The existing buildings fully comply with the most modern standards required for production and modern methods of storage, incl. e.g. building height and technological equipment. From the point of view of the availability of manpower, the complex benefits from the proximity of the towns of Beroun and Zdice. At present, the company produces in four plants in the Czech Republic and in one in Bulgaria, when in 2020 the company expanded its production in modernized premises in this property in Zdice, “explains Robert Ides, co-founder of the group. “The completion of this transaction is the second of a total of five anticipated transactions this year. By the end of 2021, we would like to value of 1.5 billion Czech crowns in assets under management, consisting of yielding assets and our new developments”, concludes Lubor Svoboda a very positive assessment of this transaction and the current development of the third fund. The entire transaction was legally supervised by the experienced law firm Kocian Solc Balastik, advokatni kancelar, s.r.o..
ARETE among the Best of the Best – HOF Awards 2021
We would love to share with you our next, this time international success. We were nominated in two categories for one of the most prestigious awards in the European real estate world, the HOF Awards 2021 – Best of the Best Asset Management Company and in category Best of the Best Warehouse Development over 10,000 sqm. The 6th year of this prestigious HOF Awards for Central and South-Eastern Europe ceremony will take place on September 23rd in Prague. The HOF Awards 2021 will attract leading real estate professionals from all over the region, presenting the most successful companies and leaders. We appreciate both nominations immensely, because they represent a reward for the results of many years of work of the entire team of the ARETE group.
Will Ondřej Lieser write another shining chapter in his successful golf career? The Olympic golf tournament starts on Thursday.
Will Ondřej Lieser write another shining chapter in his successful golf career? The Olympic golf tournament starts on Thursday. The golf tournament at the Tokyo Olympics begins on Thursday this week. On one of the oldest courses in Japan, the best Czech golfer Ondřej Lieser is fighting for Olympic medals among the stars of world golf. The whole team of the ARETE group will, of course, keep their fingers crossed for Ondřej.
The end of the year marked by positive news from the ARETE group
The ARETE Group fund has again been the most profitable real estate fund in the Czech Republic for a long time (data as of 31.12.2020) According to independent evaluation of Hospodářské noviny monitoring data of real estate funds operating in the Czech Republic, the fund of the ARETE Group has long brought the highest appreciation to its investors. The ARETE INVEST Sub-fund CEE II reigns supreme in the overall long-term statistics – it has the highest average annual return throughout the fund’s existence (17,66%). Combined with one of the lowest loan-to-value ratio (LTV) of 53 % and with a strategically diversified portfolio, the ARETE INVEST Sub-fund CEE II is also clearly the most stable fund of all the funds assessed. The sub-fund confirmed its profitability by successful divestment of the entire portfolio in March 2021. It results from the common project of Hospodářské noviny and the Institute for Strategic Investments at Faculty of Finance and Accounting at the University of Economics, Prague. Since 2017, it provides an overview of data on real estate funds available to Czech investors. Newly published data processed financial information valid at the end of 4H2020. The ARETE Group currently has a new fund of qualified investors, ARETE INDUSTRIAL SICAV open, which focuses on industrial properties in the CEE region. Its goal is to build on the success of the previous two funds and right now it allows investors to subscribe the investment shares of the fund. An overview of all independent evaluation results is available on the website: https://top-realitni-fondy.ihned.cz/
The third fund of the ARETE group has secured bank financing from the Raiffeisen banking group
On July 1, the ARETE Investment and Real Estate Group signed an agreement with Raiffeisenbank to draw a EUR 30 million umbrella credit line. The funds will be used to accelerate the growth of the ARETE INDUSTRIAL SICAV fund’s portfolio through prepared acquisitions and new construction of industrial real estate while maintaining a safe and conservative LTV ratio. “We are building a new portfolio of the fund and the quality of the purchased properties is reflected in the financing actually provided. The EUR 30 million credit line confirms the successful strategy of our funds, which is currently continuing in our third fund – the confidence of the Raiffeisen Group clearly underlines this. Funding in this amount is only the first step, which is rather a foreshadowing of the fund’s ambitions to manage assets totalling over EUR 400 million. Due to ongoing acquisitions of investment projects, I believe in increasing this credit line at the turn of this year, “said Lubor Svoboda, co-founder of the ARETE Group. “The financing provided by the strong Raiffeisen banking group is a continuation of our cooperation, which began with the financing of our second sub-fund. The bank’s trust brings our fund high stability and the security of sufficient capital resources. It enables the smooth completion of prepared acquisitions and the acceleration of the pace of forming the fund’s portfolio. We can thus make good use of all the opportunities we currently have on the market. At the same time, we want to continue to maintain a safe ratio of bank loans to the value of assets (LTV). Especially at present, we clearly consider our lower debt strategy to be our competitive advantage,” adds Robert Ides, the second co-founder of the ARETE Group. The aim of the concluded contract is sophisticated portfolio financing of all new transactions in the fund and ensuring greater flexibility in financing of new developments. The entire transaction was legally supervised by renowned law firms – on behalf of ARETE it was a legal office Kocián Šolc Balaštík. Třetí fond skupiny ARETE má zajištěno bankovní financování od bankovní skupiny Raiffeisen | Hospodářské noviny (iHNed.cz)
Production halls are bursting at the seams
The economy is booming and modern industrial estates are making money like never before. They have historically the highest occupancy, a record volume of concluded leases and the construction of other new warehouses and production halls continues rapidly. For investors, this is one word… euphoria. “The pandemic has led manufacturers to struggle with a shortage of components from Asia. This will lead to the fact that supply and logistics routes must be shortened,” commented Lubor Svoboda for Novinky.cz. Full article here (only in Czech): https://www.novinky.cz/ekonomika/clanek/ekonomika-roste-vyrobni-haly-praskaji-ve-svech-40362481#seq_no=2&source=hp&dop_id=40362481&dop_ab_variant=0&dop_req_id=tYyvaZGC4Zi-202106080601&dop_source_zone_name=novinky.sznhp.box&utm_campaign=&utm_medium=z-boxiku&utm_source=www.seznam.cz
With our long-term annual return above 10% we are better than the most funds on the Czech real estate market
With our long-term annual return above 10% we are better than the most funds on the Czech real estate market. “Those who invested in the fund with us first doubled their money. However, even those who entered last will still be paid about twice the annual return, which is achieved by money market funds in the Czech Republic, for example, ”says ARETE Group co-founder Lubor Svoboda. “These are real numbers that are not artificially prepared by any revaluations or other opinions of fund managers. We are following the path of confirming fair value by selling entire portfolio on the market,” he adds. We are now launching another real estate fund, which again relies on logistics, warehouses and light production halls, which, however, will be many times larger than in the previous fund. We should thus significantly beat the expected rate of inflation within the investment horizon. The interview was published in a printed version of today’s Hospodářské noviny. You can also read the whole interview under this link (only in Czech): https://lnkd.in/dE4mpKr
We, in ARETE, are his proud partner.
He is still experiencing significant career progression. Last year after significant improvement, golfer Ondřej Lieser finished 179th in the World golf rankings. After the triumph on the Challenge Tour, this year he owns full playing card on the most prestigious tour of the old continent, the European Tour, and what’s more, in July he should represent the Czech colours at the Olympic Games in Tokyo. He told Czech Television what was behind his improvement. You can watch the whole interview with Ondřej at this link (only in Czech): https://lnkd.in/gGjeEnd
Industrial real estate is built on solid foundations
The real estate market across Europe was under pressure last year, but not all segments declined due to crisis. The most resilient class of real estate in the crisis proved to be the industrial ones. “For example, compared to the office or shopping center markets, where there was a decline last year, the industrial real estate segment continued to grow steadily,” said our colleague Igor Šnirc for the Slovak magazine Trend. Information about volume of investments in 2020 compared to previous year and what was the total volume of executed transactions, you can read in this article (only in Slovak): https://lnkd.in/d2HgcTq
ARETE Group awarded CIJ Awards Slovakia 2020 for new industrial park near Košice, Slovakia
The investment group ARETE, which includes real estate investment funds, won the 2020 CIJ Awards Slovakia in the category Best Warehouse Development category above 10,000 sqm. ARETE Park Veľká Ida is an excellent industrial park near the second largest Slovak city, Košice, which was completed last year. This highly specialized hall with a unique architecture of the industrial and administrative part was built according to the assignment of the tenant, Dominion Steelcon A / S Slovakia, a member of the Dominion Group, which is a global manufacturer of demanding technological equipment. The property with an area of 12,000 sqm represented an investment of EUR 13 million. You can read the full article here (only in czech): https://tiskovezpravy.ihned.cz/c1-66901290-skupina-arete-ocenena-cij-awards-slovakia-2020-za-novy-prumyslovy-areal-u-slovenskych-kosic
