The Arete Invest real estate fund has successfully closed its first sub-fund with an appreciation of over 100% and paid off its investors
Prague, 3rd of October 2017
Arete Invest, a rapidly growing fund focusing on investments in real estate, has become one of the first ever funds in the Czech Republic to successfully close its first sub-fund, CEE. The formal deletion from the Czech National Bank register took place in the past few days. In its two years of active management, the sub-fund achieved an appreciation of over 100% p.a. The investors were paid off at the beginning of this year. Arete Invest currently offers investments into its second sub-fund, CEE II, which focuses on the regular appreciation of invested funds at between 11% and 16% per year, while the current yield significantly exceeds these values.
“We only set up the Arete Invest fund in 2014, however we can already be proud of the successes we have managed to achieve. In a very short time we significantly appreciated the portfolio of the first sub-fund, which we have now also successfully formally closed, something very rare on the Czech market. Now we are focusing all of our energy on a second sub-fund focusing on industrial real estate, which we also anticipate will produce above-standard results. The correctness of our assumptions has been shown by the audited yield for last year, which was a very high 25.7%,” said Lubor Svoboda, co-founder and chairman of the administrative board at Arete Invest.
The investment story of the first Arete Invest sub-fund, CEE, was brought to a close last October with the sale of the whole of the residential portfolio composed of several hundred residential units to a foreign financial investor. This was followed by the economic and legal closure process for the sub-fund, which lasted several months and which has now been formally completed with the deletion from the register maintained by the Czech National Bank.
In February 2016, a second sub-fund was set up, Arete Invest CEE II, which is gradually forming a homogenous portfolio of yield-producing high-standard industrial real estate. “The economic situation in Central Europe is beneficial to the development of logistics and manufacturing, and therefore the investment strategy of our second sub-fund focuses precisely in this direction. The record profits posted by multinationals and the historically highest revenues posted by car makers are only further evidence of this,” explained Robert Ides, co-founder and member of the administrative board at Arete Invest.
The anticipated value of the Arete Invest CEE II managed assets during the anticipated five-year investment cycle is EUR 200 million. The sub-fund aims to regularly appreciate investors’ funds at between 11% and 16% per year, while of this up to 6% annually is financial distribution paid out on a quarterly basis. The current yield significantly exceeds these values. The value of the managed real estate owned by the fund grew in the second quarter of this year to EUR 53.5 million, while Arete Invest is planning to invest tens of millions more euros on the Czech and Slovak markets by the end of this year.