ARETE plans significant investments in its third fund for 2021
ARETE Group fulfils its investment strategy by entering into a sale agreement with Cromwell European REIT (CEREIT), sells an overall portfolio of its second fund for EUR 113.2 million and plans significant investments in the third fund for 2021. Read the whole article here: https://cijeurope.com/en/arete-plans-significant-investments-in-its-third-fund-for-2021/post.html
Industrial Parks Making Money Even During Pandemic
Czech funds outperform foreign ones Once again, it has been confirmed that investing in industrial real estate is almost a safe bet. According to the real estate consulting company Savills, last year in continental Europe revenues from premium industrial properties and premium shopping centers were almost the same for the first time in history, as demand for logistics grew up sharply. You can read about us, as market leaders in the field of industrial real estate with gross return exceeding 17% p.a., about one of the largest transaction made last year and about a new acquisition in our third fund in the attached article in the daily Právo, only in Czech.
“I invest in tangible, income generating assets with return on investment above inflation,” says successful businessman Lubor Svoboda
On one hand, it is good to have cash, because it is the “king”, as it is popularly called, but on the other hand, the money in the account quickly loses value. In an interview with FAEI.cz, Lubor Svoboda, co-founder of the successful real estate fund Arete that focus on premium warehouses and logistics centers in the Czech Republic and Slovakia, brings his relatively conservative view on investing, what he thinks about cryptocurrencies, gold and bonds and what future awaits investors in the industrial real estate segment. The whole interview in CZ: https://faei.cz/investuji-do-hmotneho-s-vynosem-nad-inflaci-rika-uspesny-byznysmen-lubor-svoboda/?utm_source=www.seznam.cz&utm_medium=sekce-z-internetu#dop_ab_variant=0&dop_req_id=GB77jZOGAUu-202101180202&dop_source_zone_name=hpfeed.sznhp.box
Industrial property of company Hengstler new in portfolio of our third fund
The third fund of the ARETE Group acquired a modern, highly specialized production facility with research and development center and with the potential for further development in Kežmarok, Slovakia. The investment exceeded 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 the acquisition of a production facility in Kežmarok, Slovakia, in December 2020. It is the purchase of a complex used not only for production and storage, but also as a global research and development center of the German company Hengstler with a 150-year history, which is part of the globally operating American industrial and technological group FORTIVE. The financial volume of the transaction exceeded EUR 10 million. “Current completion of this transaction is a clear signal that we are able to fulfil the fund’s strategy regardless of the complications of the covid-19 pandemic. We are able to find interesting investment opportunities with further development potential. The strategic goal is to purchase quality industrial properties into the fund and to acquire creditworthy international tenants with a high rating. The acquisition thus fully fulfils both of just mentioned attributes. An important factor for us is that the tenant is interested in expanding and investing in sophisticated research and development technologies in the locality. Other vacant plots of land that are part of the acquisition allow us to create conditions for long-term and stable growth of the tenant. We are pleased to welcome company Hengstler to our portfolio of premium tenants,” said Lubor Svoboda, co-founder of the ARETE Group. “It is a premium class industrial complex built in 2017, which has over 10.000 sqm of leasable area with the possibility of expansion by another almost 5.000 sqm, while in the course of 2021 it is planned to start new construction. The property is for 100% leased to the German company Hengstler. FORTIVE, a global industrial and technology holding company to which Hengstler belongs, is a company listed on The New York Stock Exchange, is part of the Nasdaq index and had sales of USD 7.3 billion in 2019. The high credibility of the tenant is proven by the fact that in 2019 alone, the FORTIVE group achieved a profit of more than USD 1 billion,” explains Robert Ides, co-founder of the ARETE group, and continues: “Hengstler’s interests in Kežmarok are strategic and long-term. It currently employs approximately 400 highly skilled employees not only in manufacturing but also in its global research and development center. The advantage of the region is the good availability of skilled labour. The tenant has a long-term lease contract. Its production program is highly diversified – the key components of the production program are various specialized electromechanical components, control panels and relays, which are supplied across all markets without specific industry or customer dependence,” concludes Robert Ides the positive evaluation of the transaction.
Arete acquires industrial asset in Slovakia
The third fund of Czech investor Arete Group has acquired a modern, highly specialized production facility with a research and development centre and with the potential for further development in Kežmarok, Slovakia. The value of the investment exceeded €10 million. The whole article can be found here: https://www.property-forum.eu/news/arete-acquires-industrial-asset-in-slovakia/7348
ARETE Group fulfils its investment strategy by entering into a sale agreement with Cromwell European REIT (CEREIT) and sells an overall portfolio of its second fund for EUR 113.2 million
ARETE Group and Cromwell European REIT signed a purchase agreement where ARETE INVEST CEEII sells its overall portfolio for EUR 113.2 million at net operating income yield of 6.7%. Transaction is expected to close in Q1 2021, allowing for the full fiscal year 2020 closing and smooth handover period. The Portfolio comprises 11 logistics and light industrial properties in the Czech Republic and Slovakia with almost 100% occupancy rate leased to 17, mainly international tenants. Its overall leasable area of 125,000 sqm, additional 140,000 sqm for further development and future growth, ranks this transaction as second largest in the Czech Republic while it represents almost 25% of the overall industrial investment transactions volume concluded in the Czech Republic in 2020 to date. “This step represents a significant milestone in our fund strategy and proves that our defined target in 2016 , to build and compile a portfolio of quality logistics and light industrial assets throughout a 5 year investment cycle, is now delivered on. It also clearly demonstrates that through consistent approach, the portfolio meets high quality standards demanded by institutional investors such as Cromwell European REIT, a listed and publicly traded REIT on Singapore stock exchange. Consistency and transparency always were and will remain to be key fundamentals of our strategy and we intend to retain and further enhance those in our third fund, ARETE INDUSTRIAL, which currently initiated its investment phase” commented Robert Ides, co-founder of ARETE group. “As proven in our second fund, we are confident that again we will confirm our ability to deliver on strategy, meet expectations of our investors’ base in the upcoming years and compile much larger and coherent portfolio of high quality industrial and logistic assets in the CEE region with its target value of at least EUR 400 million. Our third fund should even more elevate quality of assets and meet highest standards of institutional investors. I’m really proud we will be delivering on our promise and as the only fund in the Czech Republic and Slovakia, executing on divestment of an overall fund’s portfolio” added Lubor Svoboda, co-founder of ARETE Group. Mr. Karol Pilniewicz, Head of Central Eastern Europe (CEE) for Cromwell Property Group said: “We are delighted to be able to support CEREIT on this transaction. We are actively looking for acquisitions for a range of different capital partners, mainly in Poland, Czech Republic and Slovakia with a particular focus on core plus, value-add and opportunistic opportunities”. With JLL‘s forecast volume of EUR 1.66 billion invested into the Czech Republic and Slovakia this year, almost 30% of the transacted volume was allocated into logistics and industrial properties. “It is a trend of recent years that real estate investments in both countries are strongly focused on prime strategically located industrial and logistics properties with combination of strong covenants and long leases. ARETE INVEST CEE II Portfolio stands out as an investment product and we are proud to have worked closely with the ARETE team ensuring maintaining momentum of one of the key deals of 2020 through this challenging pandemic year. The transaction represents one of the largest industrial transactions this year and is testament to the solid and resilient nature of the industrial/logistics market in CEE” commented Mike Atwell, Head of Capital Markets CEE for JLL.
Cromwell to acquire €113.2 million logistics portfolio in CEE
Cromwell EREIT Management Pte. Ltd., the manager of Cromwell European Real Estate Investment Trust announced that it will be acquiring a portfolio comprising 11 logistics and light industrial properties in the Czech Republic and Slovakia for an aggregate purchase price of €113.2 million, on a net operating income yield of 6.7%. The seller is Arete Invest, acting on behalf of its sub-fund Arete Invest Podfond CEE II. The whole article can be found here: https://www.property-forum.eu/news/cromwell-to-acquire-1132-million-logistics-portfolio-in-cee/7228
ARETE’s production halls in Uherské Hradiště and Košice approved for use, investments reaching almost EUR 20 million
“We are glad we have managed to finish construction in both locations within the planned deadlines. We have also coped well with the complications arising from the coronavirus pandemic, which have caused suspensions of construction work and disruptions in material supplies. Yet in spite of this, the premises were ready for the tenants sooner than expected,” said Lubor Svoboda, ARETE group co-founder. “Our own construction projects prove that we are able to further expand our real estate portfolio, significantly contributing to increasing value for our investors. In addition, we want to support – beyond our obligations – the whole regions where we operate. For example in Veľká Ida, where our newly built production premises are located, we have donated a children’s playground to the village,” Lubor Svoboda added. New premises in Košice A set of two specialized production halls for Steelcon Slovakia, a member of the Danish Dominion Steelcon Group specializing in the manufacture of steel chimneys, has been built in the Veľká Ida industrial zone. It is located in the immediate vicinity of the city of Košice, Slovakia, and has long been on the radar of foreign manufacturing companies. “Steelcon Slovakia, a member of the Dominion Group, is a highly stable and globally growing company. It has already supplied over 6,500 industrial steel chimneys worldwide, making it a global leader in the industry. We have acquired a genuinely important long-term tenant for our production hall,” Lubor Svoboda stressed. The funds invested into this construction project, strengthening the attractiveness of the Slovak investment market, amounted to EUR 13 million. The construction work was launched in November and approved in August. Extension of the hall in Uherské Hradiště Intensive work on the expansion of the existing Forschner production hall in ARETE’s industrial park in Uherské Hradiště began last year, and the tenant was able to start its preparations for production in the new spaces on time. The project includes, among other things, the construction of modern clean operations for the manufacture of electric vehicle components pursuant to the highest international standards with constant temperature and humidity. The construction project naturally includes a rainwater infiltration solution. Other integral parts of the hall include modern office and sanitary facilities for employees. The Class A industrial complex in Uherské Hradiště with its excellent transport links to Slovakia and the South Moravian Region has been part of the Arete portfolio for four years now. It offers a total production and storage area of 12,750m2, of which 1,034m2 is specialized clean operations. The entire premises are leased to Forschner, initially a German family firm which has grown into a multinational corporation. It specializes in electromobility, manufacturing cable and electromechanical systems and other components, primarily for the automotive industry. Its clients include Audi, Continental, Daimler, Volkswagen, Philips and Bosch.
Breakfast of champions
Six years ago, Lubor Svoboda seized “not entirely sexy” investment opportunities in the form of industrial real estate, from which he and Robert Ides built ARETE – the most profitable real estate funds in the Czech Republic. They can generate a yield of over 20 percent per year and, in addition, they have managed all the pitfalls of the coronavirus crisis with no harm.
Industrial real estate in ARETE is an investment boutique
Real estate is still considered one of the best forms of long-term investment. An interesting form of investment is industrial real estate, which can represent the most stable assets in this period. Robert Ides, co-founder of the ARETE investment group, said more about this topic. Investments in industrial real estate are not as well known as other types of investment funds. Why did the ARETE group decide to focus on this type of investment? The whole interview with Robertem Ides can be found here: https://www.trend.sk/biznis/priemyselne-nehnutelnosti-arete-su-investicny-boutique
