We are members of Czech Capital Market Association
We handed over a new unit in ARETE Park Rokycany I to Safran Cabin CZ
We have completed a new unit within ARETE Park Rokycany I and handed it over to Safran Cabin CZ, a leading manufacturer of cabin interiors. We are continuing the construction of the second building in ARETE Park Rokycany I, which will provide three rental units with a total area exceeding 15,000 sqm. The first unit, with an area of 8,357 sqm, was completed and handed over to Safran Cabin CZ, s.r.o. Here, the company will manufacture crew rest compartments, kitchen modules, and wardrobe closets for the Airbus A330 family of aircraft. The company has signed a long-term lease and will share the building with another tenant. Safran Cabin is a global leader in cabin interiors, systems and equipment. The company has been operating in the Czech Republic since 2001, when it began manufacturing kitchen modules, wardrobe closets, lavatory units, and crew rest compartments for Airbus A320 aircraft in Plzeň at Borská Pole. It is a member of the Safran Group, an international high-technology group in aviation, defense and space markets, employing more than 92,000 people across 27 countries. The total area of ARETE Park Rokycany I will exceed 22,000 sqm and the technical specifications of both halls meet the highest environmental standards, including achieving BREEAM certification. The park also offers an attractive location, situated directly at Exit 62 of the D5 highway, the main transportation route connecting Prague with neighboring Germany. The total value of assets under management in the ARETE INDUSTRIAL fund exceeds €300 million. Geographically, the fund’s leasable area is currently distributed as follows: 48% in the Czech Republic, 27% in Slovakia, and 25% in Poland. The ARETE INDUSTRIAL fund is one of the first real estate funds to be classified as “light green” under the European SFDR regulation.
ARETE was awarded the “Best Asset Management Company of the Year”
CIJ EUROPE hosted the 24th Czech Republic CIJ Awards in Prague on the 27th of November 2024, at the Prague Marriott Hotel. We are happy to announce that ARETE was awarded the prestigious „Best Asset Management Company of the Year“ price recognizing the hard work and dedication of the entire team and our commitment to excellence, integrity, and delivering the best of intentions always with honor. We designed our comprehensive strategy of Fully Integrated Real Estate Investment Management Approach to enhance the value and performance of real estate investments through a meticulously managed end-to-end process, encompassing asset acquisition, active management, and strategic exit execution. By maintaining control over each stage of this process, ARETE aims to maximize value and deliver optimized outcomes for our investors. The CIJ Awards is longest-running commercial property awards event in Czech Republic, evolving continuously over the past 24 years to reflect the dynamic changes in local, regional, and international property markets. It was a privilege to attend this one-of-a-kind event and connect with other leading players in the Czech market. More information i available at CIJ Awards Czech Republic – CIJ Awards 2024
Co-founders of ARETE Group among “The 100 Most Influential People in CEE Real Estate”
Robert Ides and Lubor Svoboda, co-founders of the ARETE Group, have been featured in “The 100 Most Influential People in the CEE Real Estate”. On 25-26 November, Property Forum recognised the best projects, most impactful transactions, and most inspiring personalities and companies in the CEE real estate market and presented the CEE Property Awards. On the first evening Property Forum unveiled its first-ever CEE TOP 100 list. The publication highlights the 100 most influential people in the CEE real estate sector. We’re proud to announce that Robert Ides and Lubor Svoboda, co-founders of the investment and real estate group ARETE, have been included in this prominent list. Property Forum is a leading event hub in the CEE real estate sector with over 10 years of experience organizing conferences, business breakfasts, and workshops for real estate professionals. To learn more, please visit CEE Property Forum & Awards Gala 2024 – Vienna, Austria – AGENDA
Decarbonizing Portfolio Supports the Achievement of Returns
Achieving the Paris Agreement targets demands a profound transformation of global financial flows. This shift offers significant opportunities for the private sector, particularly investment funds. Investment in climate-aligned projects not only enhances sustainability but also opens avenues for long-term, resilient returns. At the OECD’s annual Forum on Green Finance and Investment, Frederic Samama, Head of Strategic Development at S&P Global Sustainable 1, highlighted a key opportunity for investors. He emphasized the benefit of aligning investment portfolios’ annual carbon footprint with the Intergovernmental Panel on Climate Change (IPCC) recommendations. Specifically, the IPCC Special Report on Global Warming of 1.5°C outlines the expected annual emission reduction rate below which investment portfolios should stay by 2050. Financial institutions can adopt this annual decarbonization rate to protect their investments against financial risks from global transition policies. The analysis of the ARETE Group shows that to increase the value of the investment portfolio, the portfolio can be aligned with the expected level of decarbonization. The real estate managed by ARETE INDUSTRIAL FUND, therefore, undergoes an internationally recognized assessment Carbon Risk Real Estate Monitor (CRREM). Using this CRREM tool, we can quantitatively assess the level of alignment of the ARETE INDUSTRIAL portfolio with the Paris Agreement and IPCC’s special report. Consequently, we are able to better and faster mitigate the transitional risks and protect our investments from the costs caused by the implementation of market schemes such as the Emissions Trading System (EU ETS II). Additionally, the CRREM tool further informs our evidence-based management of our sustainable real estate portfolio. Otherwise, the valuation of our portfolio is increased through the prestigious BREEAM certification at Very Good level, which we manage on over 90 % of our assets. Together, the two science-based assessments help to improve the risk-return profile, guide decision-making and contribute to positioning ARETE among leaders in the industrial real estate industry in the CEE region.
Industrial real estate: an opportunity for long-term investment in a period of market stabilization
Slovak magazine Trend published an article by Lubor Svoboda, co-founder of the investment and real-estate group ARETE. In the article, Lubor discusses the current situation on the financial and real estate markets. The current investment market represents an opportunity for those looking for profitable investments in industrial real estate. Commercial real estate prices in Western markets have seen a significant correction, creating an opportune time to buy. Industrial parks with quality management provide stable income through long-term leases, making them an ideal choice for long-term investment. Now is a good time to invest prudently to achieve long-term appreciation. Lubor Svoboda also outlines the strategy of the ARETE INDUSTRIAL fund, which is preparing for further acquisitions of industrial parks in Western and Central Europe to its portfolio. Read the full article in the Trend magazine or here: Priemyselné nehnuteľnosti: príležitosť na dlhodobé (trend.sk)
We Participated in a Charity Event to Help Animals in Need
On Sunday, September 22, the 11th annual charity event “Let’s Run and Help Shelters” took place in Stromovka, Prague, which we supported. The event is organized by the namesake organization, which has been supporting shelters that help animals in need since 2014. Over its years of operation, the organization has managed to raise and distribute over 20 million CZK in financial aid. The group’s ambition is to create a society where helping animals is a given. Notably, 96% of the assistance to shelters comes from individual donors, with only 4% from companies. We are pleased to have contributed to this good cause and enjoyed the wonderful atmosphere of the day. Striving for a society responsible for the environment is also part of our ESG strategy. For instance, within the ARETE INDUSTRIAL real estate fund, we manage more than 80% of buildings under the international BREEAM sustainability certification, which allows us to increase the value of our properties while reducing our environmental impact.
The Time for Real Estate Investment Reallocation Has Come
Lubor Svoboda, co-founder of the investment and real estate group Arete, provides an overview of the latest trends in the real estate market in the article for Euro magazine. He explains how the COVID-19 pandemic and subsequent geopolitical instability have impacted the globalization of manufacturing processes and the European real estate market. Lubor Svoboda discusses recent price corrections in developed real estate markets and the revival of investment activity in Europe after two years of decline. He also highlights opportunities for investors in select real estate segments and outlines the strategy of the ARETE INDUSTRIAL fund, which is preparing for further acquisitions of industrial parks in Western and Central Europe. The full article can be found in Euro magazine, published on September 30, or available here.
ARETE Enters the Polish Market
We have completed the acquisition of a major logistics park in western Poland. With this move, ARETE expands its operations beyond the Czech Republic and Slovakia, entering the Polish market. This acquisition strengthens the portfolio of the ARETE INDUSTRIAL fund, increasing its total leasable area by 25% and raising the value of assets under management to over EUR 300 million. In this significant move, which is in line with the group’s strategy of investing in high-quality logistics assets in strategic locations in Europe, ARETE is expanding into the Polish market. The park will be part of the ARETE INDUSTRIAL real estate fund portfolio. The park is located in the city of Zgorzelec and represents a Class A logistics facility with a BREEAM Excellent certification, offering a total leasable area of approximately 65,000 m2. Its key location on the Polish-German border provides direct access to major European markets. The park is fully leased on a long-term basis to the prestigious tenants, including a European manufacturer of disinfectants and hygiene products and a leading logistics operator running a distribution center. The city of Zgorzelec offers numerous advantages for logistics and industrial operations. Its strategic cross-border location provides seamless access to both the German and Polish markets, with excellent connections to major highways, including the A4, which is part of the European Transport Corridor III. This ensures efficient transport to major cities like Dresden, Berlin, and Wrocław. The region also offers access to a skilled workforce from both Poland and Germany and serves as an industrial hub focused on manufacturing, retail, and services. With the acquisition of this park the total leasable area of the ARETE INDUSTRIAL fund will increase by 25%, and the value of assets under management will exceed EUR 300 million. Geographically, the leasable area of the fund is now distributed as follows: 48% in the Czech Republic, 27% in Slovakia, and 25% in Poland. The park combines high functionality with environmentally friendly solutions. The BREEAM Excellent certification confirms its high energy efficiency and low carbon emissions. The facility is equipped with advanced energy management systems, LED lighting, and systems to limit water usage, meeting the needs of tenants seeking both sustainable and modern logistics spaces. The project is thus fully in line with ARETE Group’s ESG strategy and confirms its commitment to sustainability and modern infrastructure. This acquisition represents another key step in our expansion strategy in Europe and offers significant growth potential.
Advantages and Specifics of Qualified Investor Funds
Qualified Investor Funds (QIFs) deliver higher long-term returns compared to mutual funds. The ARETE INDUSTRIAL fund consistently ranks among the most stable and best-performing investment funds in the Czech Republic. In an article for Wealth Magazine, Lubor Svoboda, co-founder of the investment and real estate group Arete, explains what it takes to establish a QIF, the benefits these funds offer compared to retail funds, and the specifics of a QIF investing in industrial real estate within a closed investment cycle. He also discusses the challenges the ARETE INDUSTRIAL fund has faced in recent years and reveals the group’s plans for the fund in the coming years. With real estate having undergone price corrections and inflation stabilizing, Arete is poised for further strategic acquisitions in the CEE region and Western Europe, supported by favorable market conditions, low leverage in the fund’s financing, and strong bank confidence. You can find the full article in the latest issue of Wealth Magazine or here.
