Fond Arete Invest invests 130 million in expanding its premises in Uherské Hradiště, extends contract with tenant by 11 years
Prague / Uherske Hradiste, 25th of June 2018
Arete Invest, a fast-growing Czech fund that focuses on investment in real estate, signed a new lease contract with Forschner in May that is valid through to the year 2029. Forschner’s production capacities at Arete Park Uherské Hradiště will therefore be increased by 5,000 sqm next year to a total of 12,300 sqm of space. Total investment in new construction work is estimated at 130 million koruna.
“We are delighted that we are able to support our tenant’s onward development. The expansion of the premises in Uherské Hradiště and the significant extension of the contract will lead to further stabilisation and will also increase the value of the portfolio of our sub-fund,” said Tomáš Novotný, member of the Arete Invest CEE II Sub-fund investment committee responsible for asset management.
The category A industrial zone in Uherské Hradiště, which offers excellent transport connections to Slovakia and South Moravia, has been part of the Arete Invest portfolio for two years now. The property currently has 8,400 sqm of lettable space. The new structure, which covers some 4,300 sqm, will include clean, modern plants for the production of component parts for electric cars. Production is expected to get underway at the new premises in October of next year.
The complex in Uherské Hradiště is 100 % let to Forschner, which rose from being a German family firm to a multinational company. It concentrates on electromobility, the production of cable and electromechanical systems and other component parts, particularly for the motor industry. Its clients include names such as Audi, Continental, Daimler, Volkswagen, Philips and Bosch. Forschner employs more than 700 people at Arete Park Uherské Hradiště and by expanding production has confirmed its role as a strategic player in supplying the motor industry.
The objective at Arete Invest is to actively manage all real estate in the portfolio and to increase its value by increasing the number of tenants, extending lease contracts, intensifying relations with tenants or using land which is currently unused for future construction. The complex in Uherské Hradiště is part of the portfolio of the currently-open Arete Invest CEE II sub-fund. The expected value of the assets managed in this sub-fund during the anticipated five-year investment cycle is CZK 5 billion. The sub-fund is aiming for regular appreciation of the finances invested by investors of up to 11 per cent per annum, whereby up to 6 per cent of this p.a. will be paid out on a quarterly basis. Current profitability far outstrips these estimated values.