Philanthropy and socially responsible behaviour are important to us at ARETE
Philanthropy and socially responsible behavior are important to us at ARETE. We have a long-standing positive experience with investments from international foundations into our funds. We are pleased that the returns we have achieved in the past have contributed not only to our success but also to securing necessary resources for philanthropic purposes. However, the nature of philantropy itself has been changing in recent years. We are gradually shifting from spontaneous collections and the bequeathing of entire estates to philanthropic entrepreneurship. Learn more in an article by our colleague, Josef Vojta, on philanthropic capitalism for Wealth Magazine. Full article: https://www.linkedin.com/feed/update/urn:li:activity:7080089092989841408
The real estate market is increasingly influenced by ESG principles. Sustainability is also crucial for us at ARETE.
Likewise, tenants and investors in the real estate market perceive the situation similarly, often making decisions based on adherence to ESG values. The pursuit of sustainability presents a significant opportunity not only for the industrial property segment but for the entire real estate market. “We are building our portfolio of manufacturing and logistics properties with a focus on its energy efficiency, ecological friendliness, and overall attractiveness to tenants who value ESG principles,” explains our colleague Tomáš Novotný in the article for Wealth Magazine. Full article: https://wmag.cz/esg-tu-s-nami-zustane-a-bude-ovlivnovat-trh-s-nemovitostmi/
Is it worth entrusting your property to professionals?
The economic slowdown, increased interest rates, and availability of financing have resulted in the growing popularity of sale and leaseback transactions, not only in industrial real estate. A sale and leaseback of a property can free up a company’s hands and bring in the much-needed capital needed to modernize and implement advanced technologies. “A sale and leaseback free up real estate tied-up capital for the company. Primarily, this can improve the company’s financial ratios and balance sheet structure, reduce the debt burden and improve cash flow and liquidity. In times of higher interest rates, it also reduces the need to take on new loans and accelerates the repayment of old liabilities,” explains our colleague and ARETE CIO Miroslav Barnas in a text for Wealth Magazín. Full article here: https://wmag.cz/vyplati-se-sverit-vasi-nemovitost-profesionalum/
Warehouses are about to (r)evolve – robotics and automation will bring higher value-added jobs and free up human capital
The industrial real estate segment is the driving force in the field of robotics, automatization, and the use of AI. These technological trends of the future can significantly increase the efficiency and productivity of work, as well as the speed and accuracy of processes. “At the same time, investments in robotics and automation create jobs with higher added value, which are constantly in short supply even in developed economies such as the Czech Republic and Slovakia. Thanks to modern technologies, areas with an industrial tradition can solve the problems of young people leaving the regions. However, it is essential to timely capture these technological trends in the areas of e-commerce, manufacturing, and logistics and invest the necessary resources in them,” explains our colleague and ARETE CIO Miroslav Barnas in the text for Wealth Magazín. Nowadays, it is no longer universally true that investments in advanced technologies are too expensive, and therefore a company cannot afford them. Instead, we can talk about a situation where, in the case of a well-prepared and well-implemented project, its return is not in the order of high units of years, but rather in the optimal case of several dozen months. More in the text https://lnkd.in/eZhw6yHS.
Time has proven the stability of investments in industrial real estate
The challenging year of 2022, when bonds or stocks suffered record losses, was, on the contrary, a very positive period for industrial real estate. We are pleased that ARETE decided to invest in this real estate market segment several years ago. In an interview with TREND.sk, our colleague Igor Šnirc explains what led us to invest in this segment, what the current market situation is, and also what investors can expect in the near future. “We believed that there was great potential in this real estate market segment and that demand in the Central European region would need to be satisfied in the coming years. Our assumptions are being fulfilled so far. The rise of e-commerce as the world’s largest market, the inclusion of logistics properties in critical state infrastructure, record construction, and the relative resilience of this segment during times of worsening economic and geopolitical conditions have shown us that we have taken the right path,” describes Igor. https://lnkd.in/ehi7Jv5z
The land is not deteriorating and the industrial business is progressing today
The return of industry to Europe, together with the building of logistics and manufacturing real estate, is bringing skilled jobs back to the less developed regions. It is also a segment of the real estate market that is driving technological innovation and sustainable construction. “Today, industrial parks are full of modern technology, research centers, and offices, which in many cases also revitalize old brownfields. And if we are already building on greenfield sites, we try to follow ESG principles. Of course, sustainability and energy self-sufficiency of our business is important to us,” says Lubor Svoboda, co-founder of ARETE, in an interview with TREND.sk. We have unlocked the full interview from the series, of which we were an expert partner, for you to read. https://lnkd.in/gru_rPty
Is the real estate market facing really tough times? And can some segments of it resist?
The only segment of the real estate market that managed to withstand the combination of higher interest rates, inflation, and high energy prices last year, was industrial real estate. “At the same time, to assume this segment is immune would be naive. Increased construction cost, yield shifts due to inflaction-driven rental rates and long-term high land prices brings significant challenges to underwriting and risk mitigation. Tenants in dire need of manufacturing or warehouse space are confronted with the market reality of higher rents. However, as this is an essential part of their business, they are trying to find savings elsewhere, for now” explains ARETE co-founder Robert Ides in a text for Wealth Magazín. The low vacancy rates within this segment, record construction volume, and ongoing demand, have so far made logistics and light construction assets the most resilient within all RE asset class allocations. https://lnkd.in/gCsEBnkq
The return of industry to Europe represents an important opportunity for less developed regions
The return of industry to Europe represents an important opportunity for less developed regions. It is a chance to reverse negative trends, such as the depopulation of border regions. Industry can provide attractive job opportunities that have disappeared with deindustrialization. “We are not talking about manual labor. These jobs will disappear within a few years thanks to automation and robotization. I mean positions with higher added value for people with technical education,” explains Lubor Svoboda, co-founder of ARETE, in a January article for the Slovak magazine TREND.sk. Thanks to global trends, investors and real estate funds sense an opportunity that may not be repeated. Moreover, if declining regions damaged by the departure of industry thrive, the whole economy will also benefit. “Our job is to find suitable investment opportunities or sites and land for new development,” Svoboda adds. We unlock for you the full article from TREND.sk, of which we have become an expert partner. https://lnkd.in/ebCQDZkt
Industrial real estate operates in all phases of the business cycle
Industrial real estate can bring stability to a portfolio as well as interesting gains during all phases of the business cycle. It is a unique sector that grows as one of the fastest in a conjuncture and at the same time can withstand recession very well. Additionally, it is the real estate segment that is driving the new green building industry.More in the text of our co-founder Lubor Svoboda for Wealth Magazín https://lnkd.in/e2ccrKDf
Real estate funds will struggle, for us it’s an opportunity to buy
Lubor Svoboda, one of our founders, in an interview for Týdeník Ekonom described the challenges that real estate funds are currently facing. Among other topics, he also outlined ARETE’s plans for the future. You can read the full interview below: https://ekonom.cz/c1-67147030-nemovitostni-fondy-budou-mit-potize-pro-nas-je-to-prilezitost-k-nakupum
