We completed one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone.
The third fund of the ARETE Group was an extraordinary success and completed the acquisition of a production and storage complex with development potential in the Plzeň – Borská pole industrial zone. Investments in Pilsen will reach almost EUR 20 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 October one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone. After the completion of all phases of development, the new ARETE PARK Plzeň Borská pole will provide a total of 18,202 m2 of premium areas for light production, assembly and logistics. ARETE plans to invest almost EUR 20 million in the new park. “The acquisition in the Plzeň – Borská pole industrial zone was one of the highest priorities we set for this year as part of the investment strategy of our third fund, and we are very pleased that we managed to complete the acquisition. The location Borská pole is historically the centre of production and logistics in the region and has long been considered a premium throughout the Czech Republic. It is not only about logistics and production, but above all about high-tech research and development centres and other highly qualified activities. The connection of the Borská pole industrial zone is ensured by two motorway feeders within 5 minutes on the D5 motorway connecting Prague and Germany,” said Lubor Svoboda, co-founder of the ARETE group. “There are 6,000 sqm of rental space immediately available for short- to medium-term rent in the complex. However, the strategic intention is to develop the entire park, which will provide more than 18,000 sqm of premium space for light manufacturing, assembly and logistics. The specifications of production and storage areas meet the latest standards, such as LED lighting, 10.5 m storage height, excellent thermal insulation parameters, concrete exterior surfaces, etc. All design specifications aim to minimize operating costs for tenants of the park. As part of the new construction, the principles of long-term sustainability of the entire project, the use of renewable energy sources and, of course, BREEAM certification will be applied. We plan to complete the park by the end of 2022,” explains Robert Ides, the second co-founder of the ARETE group. “The completion of this transaction is the third 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 ARETE fund.
The third fund of the ARETE was an extraordinary success and completed the acquisition of a production and storage complex with development potential in the Plzeň – Borská pole industrial zone. Investments in Pilsen will reach almost EUR 20 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 October one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone. After the completion of all phases of development, the new ARETE PARK Plzeň Borská pole will provide a total of 18,202 m2 of premium areas for light production, assembly and logistics. ARETE plans to invest almost EUR 20 million in the new park. “The acquisition in the Plzeň – Borská pole industrial zone was one of the highest priorities we set for this year as part of the investment strategy of our third fund, and we are very pleased that we managed to complete the acquisition. The location Borská pole is historically the centre of production and logistics in the region and has long been considered a premium throughout the Czech Republic. It is not only about logistics and production, but above all about high-tech research and development centres and other highly qualified activities. The connection of the Borská pole industrial zone is ensured by two motorway feeders within 5 minutes on the D5 motorway connecting Prague and Germany,” said Lubor Svoboda, co-founder of the ARETE group. “There are 6,000 sqm of rental space immediately available for short- to medium-term rent in the complex. However, the strategic intention is to develop the entire park, which will provide more than 18,000 sqm of premium space for light manufacturing, assembly and logistics. The specifications of production and storage areas meet the latest standards, such as LED lighting, 10.5 m storage height, excellent thermal insulation parameters, concrete exterior surfaces, etc. All design specifications aim to minimize operating costs for tenants of the park. As part of the new construction, the principles of long-term sustainability of the entire project, the use of renewable energy sources and, of course, BREEAM certification will be applied. We plan to complete the park by the end of 2022,” explains Robert Ides, the second co-founder of the ARETE group. “The completion of this transaction is the third 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 ARETE fund.
Investment cycle of the ARETE Invest fund investment fund with variable capital, settled all investors and closed the investment cycle
The ARETE Investment and Real Estate Group, which includes real estate investment funds, paid out all investors from the ARETE INVEST Subfund CEE II after the March sale of the portfolio, and thus successfully closed the investment cycle. This is the second successful closing of the sub-fund and its deletion from the register of investment funds maintained by the CNB. The ARETE Group is the only one on the Czech market to close and settle investment funds at the end of the investment cycle, directly as part of the investment strategy. Following the sale of the sub-fund’s portfolio worth EUR 113.2 million (CZK 3 billion) in March to Cromwell European REIT (CEREIT), a publicly traded real estate investment trust listed on the Singapore Stock Exchange, the principal and returns of all sub-fund investors were duly paid out and all bank financing liabilities have been fully settled. This fulfilled all legal conditions so that the entire fund, including the sub-fund, could be deleted from the list of investment funds with legal personality maintained by the Czech National Bank with effect from 1 September 2021. “We evaluate the results of the entire ARETE Invest fund, respectively both of its sub-funds, clearly positive. We closed the first sub-fund investing in residential real estate with a total average gross return of 39% p.a. in 2017. The second sub-fund investing in quality logistics and light industrial real estate, which we have now settled, was able to deliver and pay its investors a total average gross return of 11% p.a., however, investors who subscribed for the sub-fund’s investment shares in the first wave achieved a gross return on investment of over 20% p.a.. The success of both sub-funds clearly underlines our group’s ability to prepare and implement the right investment strategy for each investment period,” said Lubor Svoboda, co-founder of the ARETE group. “In particular, the successful closing of the CEE II sub-fund, where we had more than 100 investors, must be assessed from the perspective of the year 2015, when we analysed market opportunities and prepared an investment strategy. At that time, industrial real estate was on the fringes of investor interest and accounted for less than one tenth of the volume of completed transactions worldwide. Our strategy was correct and clearly successful,” explains Robert Ides and continues: “In light of current events in the Czech and Slovak capital market, we see that our approach provides investors with a parametrically different level of security and fair treatment than the competition. Unconditional adherence to the investment horizon combined with the correct timing of portfolio sales are the result of precise fund management and control. Our asset valuations and revenues are based on the realized market price, real sales. We now move on. Our third fund is now in the investment phase, we want to fulfil our strategy again and build a much larger and coherent portfolio of high-quality industrial and logistics real estate in the region of Central and Eastern Europe with a target value of at least EUR 400 million. At the end of the investment cycle, we want to offer the portfolio again to institutional buyers.” The whole article in CZ: https://tiskovezpravy.hn.cz/c1-66982100-investicni-cyklus-fondu-arete-invest-investicni-fond-s-promennym-zakladnim-kapitalem-a-s-vyporadal-vsechny-investory-a-uzavrel-investicni-cyklus
We won the prestigious European award Best of the Best HOF Awards 2021
We are celebrating a truly extraordinary success. As part of the annual European Best of the Best HOF Awards 2021, we won the very prestigious Best Asset Management Company category. This praised not only the successful sale of the second sub-fund’s portfolio and the appreciation achieved for investors, but also the innovative and market-unique investment strategy of ARETE funds based on closed – end investment cycles that close the balance with the sale of all fund assets and full payment of principal and return to investors. The Best of the Best Hall of Fame Awards 2021 is a European award, with only the winners of the CIJ Awards from individual European countries being nominated. The CIJ Awards are among the oldest and also the most important awards in the field of commercial real estate. Both of our co-founders accepted the award for our ARETE group. Lubor Svoboda and Robert Ides didn’t hide their enthusiasm after the ceremonial announcement of the winners within the CEDEM Conference 2021: “In the huge competition, we received an absolutely extraordinary award. This award is very important for us personally, because it led to it for an extremely long and difficult journey, which is behind us in ARETE. Many thanks to the whole ARETE team.” https://tiskovezpravy.hn.cz/c1-66980920-skupina-arete-ocenena-hall-of-fame-cij-awards-central-eastern-europe-za-rok-2021-v-kategorii-best-asset-management-company
Run of the Committee of Good Will – Olga Havel Foundation
Just like last year, this year we took part in the Run of the Committee of Good Will – Olga Havel Foundation and we were very happy to support families in need again. This event is already a tradition at ARETE and we are already looking forward to participating again next year!
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)
