ARETE’s Industrial Portfolio Reaches 100% BREEAM Certification
ARETE ENERGY TRANSITION FUND Sustainability Report | Q4 2025
Investment cycle of the ARETE Invest fund investment fund with variable capital, settled all investors and closed the investment cycle #2
The ARETE Investment and Real Estate Group, which includes real estate investment funds, is gradually fulfilling the strategy and investment objectives of its third fund, ARETE Industrial, which have been set for this year. At the same time, it intensively improves the management team. At the end of September, Miroslav Barnáš, who worked in the Jones Lang LaSalle (JLL) Group for more than 15 years and for the last 4 years as CEO of Czech Republic & Slovakia, strengthened the team from the position of a member of the Supervisory Board of ARETE Industrial and the manager responsible for the group’s transactions. On October 1st, Alica Koblovská took over the position of Chief Legal Officer of the ARETE Group, which worked for many years in the law firm Kocian Šolc Balaštík and most recently participated in the management of the BM Management family office from the position of General Counsel. Alica also became a member of the Supervisory Board of the fund ARETE Industrial. “For this year, we have set ourselves the goal of carrying out a total of five transactions worth a total of 1.5 billion Czech crowns. In terms of business structure, new development projects now slightly predominate over yielding assets, however, for next year’s acquisitions we assess and manage due diligence mainly on income generating assets. I’m optimistic that we will most likely meet the investment targets set for this year. At the same time, we received a positive response from investors to close our second sub-fund. For this reason, we are also succeeding in fulfilling our goals in the area of fundraising,” concludes Robert Ides, co-founder of the ARETE Group, with a positive assessment of the development of the third fund. Lubor Svoboda, the second co-founder of the ARETE Group, continues: “In order to be able to meet the set development goals of the group and our funds, it is essential that we constantly strengthen our team. I’m very pleased that Miro Barnáš is now a member of the Supervisory Board of ARETE Industrial and the manager responsible for ARETE Group transactions, whose experience in managing the JLL Group in the Czech Republic and Slovakia will undoubtedly help build a stable and profitable portfolio of our third fund. Miro has over 15 years of experience in the field of commercial real estate, especially in the field of investments, valuations, leases, construction and property management. He has led or participated in a number of acquisition or sale transactions on the capital markets in the countries of Central and Eastern Europe, especially the Czech Republic and Slovakia. From 2011 to 2020, he worked for the international real estate consulting company Jones Lang LaSalle, holding various managerial and managerial positions (Managing Director, Head of Capital Markets and finally CEO). He graduated from the University of Economics in Bratislava and has been a member of the Royal Institute of Chartered Surveyors (RICS) since 2011.” The second significant reinforcement of the ARETE team is Alica Koblovská. Alica worked for over 6 years in the law firm Kocian Šolc Balaštík, focusing mainly on real estate and commercial law. She comes to ARETE from the BM Management family office, where she has held the position of General Counsel for the last more than 4 years. She has participated in the company’s international transactions in the area of Venture Capital & Private Equity. Lubor Svoboda adds: “From the position of Chief Legal Officer of the group and a member of the Supervisory Board of ARETE Industrial, Alica will be responsible for the legal and procedural support of our projects and investment structure. I’m convinced that her ability to combine the legal aspects with a business perspective will help us mainly in the successful growth and fulfilment of the acquisition goals of our funds.”
ARETE ENERGY TRANSITION finalizes its first acquisition: BIO TERM cogeneration plant in Polandgfg111
The ARETE ENERGY TRANSITION SICAV fund, part of the ARETE group, has finalized its first acquisition. The portfolio opens with and acquisition of the BIO TERM plant, a modern cogeneration heating plant in Swiebodzice, Poland, with an electrical output of 6.6 MWe and a total thermal output of 11 MWt, which supplies heat and electricity to more than 5,000 customers. The transaction represents a significant milestone for the fund, which focuses on flexible production sources and energy infrastructure, and fulfills its goal of achieving a target return of 11-12% p.a. Established operations and flexible production BIO TERM has two highly efficient gas cogeneration units and a gas boiler, ensuring stable operation and flexibility. It complies with current European environmental standards and benefits from cogeneration support. The production also includes hot water storage tanks, which enable efficient energy management and function as thermal energy storage. “This is the first transaction of the ARETE ENERGY TRANSITION SICAV fund, that was launched in May 2025. It demonstrates our ability to seek out and acquire attractive investments in the energy sector and confirms that we have sufficient high-quality investment opportunities,” says Martin Pacovský, the Chief Investment Officer of Energy Transition. The project’s economics are based on two pillars: regulated revenues from heat supply to households and the ability to generate electricity during peak periods when the market price is highest. “BIO TERM is a prime example of an attractive asset that combines regulated revenues with the opportunity to profit from market opportunities. This contributes to our goal of achieving a long-term return of 11-12%. The hot water storage tank also plays an important role, increasing the flexibility of the entire operation and allowing us to respond effectively to market conditions,” adds Pacovský. In addition, the fund bases its investment strategy on portfolio diversification. BIO TERM is the first step, to be followed in the coming years by further acquisitions of a similar assets in Poland and neighboring countries. “We are currently evaluating three more projects that should expand the fund’s portfolio. The goal is to build a set of facilities with an installed capacity exceeding 50 MW within three years,” says Pacovský. In addition to cogeneration plants, the fund also plans to expand its portfolio to include battery storage and renewable energy sources. This is all part of a comprehensive strategy based on the current transformation of the energy sector, which is opening to new opportunities. “Based on our knowledge of the energy market and the impact of the energy transformation on future production sources, energy transmission, and storage, we are investing in assets whose value will be key to achieving decarbonization and energy security goals,” says Lubor Svoboda, co-founder of the ARETE Group. The strategic importance of the transaction is also underscored by the situation in Poland, which remains one of the European countries with the highest share of coal in electricity and heat production. Modern gas and cogeneration sources are therefore becoming increasingly important in the country, not only for achieving emission targets, but also for increasing energy security and grid stability. BIO TERM operates in a market where demand for decentralized and flexible sources is growing rapidly. In addition, the fund operates its own in-house trading desk, which actively trades electricity and other energy commodities, which will further increase the return achieved.
Social Responsibility at ARETE
ARETE Participated in a Record-Breaking National Food Drive, Bringing Hope to Those in Need
During the nationwide Food Drive, held annually since 2013, volunteers in green aprons assist donors with handing over non-perishable food and hygiene items at supermarket checkout areas. This act of solidarity has gradually become one of the largest charity events in the Czech Republic, made possible thanks to thousands of volunteers and support from partners across the country. Every donation — from a pack of pasta to baby food — is delivered via food banks to those who need it most. In the spring edition of the Food Drive held on April 26, 2025, the Czech public demonstrated unprecedented generosity. In just one day, donors contributed 464 tons of food and 54 tons of basic hygiene items — a record-breaking total of 518 tons of aid, equivalent to approximately 928,000 meals for people in need. The donated supplies provide vital relief for single-parent families, abandoned seniors, people experiencing homelessness, and other vulnerable groups. At the same time, the campaign helps reduce food waste by collecting goods that might otherwise go unused. ARETE and Raben Logistics Get Involved This year, employees and collaborators from the ARETE Group took an active part in the corporate collection — both in person at the office and through online donations. Their enthusiasm and personal commitment reflect ARETE’s corporate values and its broader commitment to social responsibility. The initiative was further supported by a financial contribution from the ARETE Group to the Food Bank, effectively doubling the total value of the donated aid. In line with its sustainability strategy, the ARETE Industrial Fund supports the development of local communities and volunteering — goals that are advanced through participation in local food drives. The main logistics partner of the campaign — for the tenth year in a row — is Raben Logistics Czech, which is also a long-term tenant in one of the industrial parks of the ARETE Industrial Fund. Raben provides comprehensive logistics services to businesses and industries and plays a key role in the success of this charitable initiative by ensuring collection and delivery of donated goods to regional food banks across the country. Thanks to Raben’s professional logistics network, 40 tons of aid were efficiently distributed across seven regions. “Once again, we’re seeing that people care about the wellbeing of others and want to help. We’re grateful to be part of an initiative like the Food Drive and help people in need live better lives,” said Jitka Kocálová, Marketing Manager at Raben Logistics Czech. At ARETE, we are proud that our employees and partners contributed to this meaningful project. The success of this year’s campaign — a 10% increase in donated food by weight compared to last year — confirms that when companies and the public unite, the impact is truly powerful.
We handed over the penultimate unit in ARETE Park Rokycany I to Hutchinson
We have completed the penultimate unit within ARETE Park Rokycany I and handed it over to its tenant, the Czech subsidiary of the French company Hutchinson. The construction of the second hall at ARETE Park Rokycany I is progressing according to schedule, offering three rental units spanning more than 15,000 sqm. Late last year, a unit covering approximately 4,800 sqm was completed and handed over to Hutchinson s.r.o. The tenant is the Czech subsidiary of the French company Hutchinson, a member of the multinational conglomerate TotalEnergies. Since 1994, Hutchinson s.r.o. has operated a production facility in another part of Rokycany, specializing in manufacturing rubber components for the automotive industry, including hoses for air, fuel, oil, and water systems. The new space in ARETE Park Rokycany I has enabled the company to establish a comprehensive logistics center. The company has signed a long-term lease and will share the hall with another tenant. Hutchinson is a global leader in vibration control, fluid management, and sealing technologies. With 40,000 employees in 25 countries, the company focuses on creating safer, more comfortable, and more sustainable mobility across air, land, and sea, delivering innovative solutions to highly demanding markets. Our goal is to consistently secure premium tenants—leaders in their industries—and we have once again achieved this with ARETE Park Rokycany I. The total area of the park exceeds 22,000 sqm, and the technical specifications of both halls meet the strictest environmental standards, including achieving BREEAM certification. Both halls are primarily heated using heat pumps. Throughout the entire park, dozens of trees, hundreds of shrubs and subshrubs, as well as hundreds of perennials and grasses, have been planted in alignment with ARETE’s ESG strategy. All species were carefully selected to reflect the region’s native flora, ensuring they seamlessly blend into the surrounding landscape. All greenery planted in the park naturally enhances the aesthetic value of the environment while also improving soil quality and promoting plant biodiversity. Additionally, the park boasts a prime location directly off Exit 62 of the D5 highway, the main transportation route connecting Prague with neighboring Germany. The total value of assets under management in the ARETE INDUSTRIAL fund exceeds €300 million. Geographically, the fund’s leasable space is distributed as follows: 48% is in the Czech Republic, 27% in Slovakia, and 25% in Poland.
We handed over a new unit in ARETE Park Rokycany I to Safran Cabin CZ
We have completed a new unit within ARETE Park Rokycany I and handed it over to Safran Cabin CZ, a leading manufacturer of cabin interiors. We are continuing the construction of the second building in ARETE Park Rokycany I, which will provide three rental units with a total area exceeding 15,000 sqm. The first unit, with an area of 8,357 sqm, was completed and handed over to Safran Cabin CZ, s.r.o. Here, the company will manufacture crew rest compartments, kitchen modules, and wardrobe closets for the Airbus A330 family of aircraft. The company has signed a long-term lease and will share the building with another tenant. Safran Cabin is a global leader in cabin interiors, systems and equipment. The company has been operating in the Czech Republic since 2001, when it began manufacturing kitchen modules, wardrobe closets, lavatory units, and crew rest compartments for Airbus A320 aircraft in Plzeň at Borská Pole. It is a member of the Safran Group, an international high-technology group in aviation, defense and space markets, employing more than 92,000 people across 27 countries. The total area of ARETE Park Rokycany I will exceed 22,000 sqm and the technical specifications of both halls meet the highest environmental standards, including achieving BREEAM certification. The park also offers an attractive location, situated directly at Exit 62 of the D5 highway, the main transportation route connecting Prague with neighboring Germany. The total value of assets under management in the ARETE INDUSTRIAL fund exceeds €300 million. Geographically, the fund’s leasable area is currently distributed as follows: 48% in the Czech Republic, 27% in Slovakia, and 25% in Poland. The ARETE INDUSTRIAL fund is one of the first real estate funds to be classified as “light green” under the European SFDR regulation.
Decarbonizing Portfolio Supports the Achievement of Returns
Achieving the Paris Agreement targets demands a profound transformation of global financial flows. This shift offers significant opportunities for the private sector, particularly investment funds. Investment in climate-aligned projects not only enhances sustainability but also opens avenues for long-term, resilient returns. At the OECD’s annual Forum on Green Finance and Investment, Frederic Samama, Head of Strategic Development at S&P Global Sustainable 1, highlighted a key opportunity for investors. He emphasized the benefit of aligning investment portfolios’ annual carbon footprint with the Intergovernmental Panel on Climate Change (IPCC) recommendations. Specifically, the IPCC Special Report on Global Warming of 1.5°C outlines the expected annual emission reduction rate below which investment portfolios should stay by 2050. Financial institutions can adopt this annual decarbonization rate to protect their investments against financial risks from global transition policies. The analysis of the ARETE Group shows that to increase the value of the investment portfolio, the portfolio can be aligned with the expected level of decarbonization. The real estate managed by ARETE INDUSTRIAL FUND, therefore, undergoes an internationally recognized assessment Carbon Risk Real Estate Monitor (CRREM). Using this CRREM tool, we can quantitatively assess the level of alignment of the ARETE INDUSTRIAL portfolio with the Paris Agreement and IPCC’s special report. Consequently, we are able to better and faster mitigate the transitional risks and protect our investments from the costs caused by the implementation of market schemes such as the Emissions Trading System (EU ETS II). Additionally, the CRREM tool further informs our evidence-based management of our sustainable real estate portfolio. Otherwise, the valuation of our portfolio is increased through the prestigious BREEAM certification at Very Good level, which we manage on over 90 % of our assets. Together, the two science-based assessments help to improve the risk-return profile, guide decision-making and contribute to positioning ARETE among leaders in the industrial real estate industry in the CEE region.
We Participated in a Charity Event to Help Animals in Need
On Sunday, September 22, the 11th annual charity event “Let’s Run and Help Shelters” took place in Stromovka, Prague, which we supported. The event is organized by the namesake organization, which has been supporting shelters that help animals in need since 2014. Over its years of operation, the organization has managed to raise and distribute over 20 million CZK in financial aid. The group’s ambition is to create a society where helping animals is a given. Notably, 96% of the assistance to shelters comes from individual donors, with only 4% from companies. We are pleased to have contributed to this good cause and enjoyed the wonderful atmosphere of the day. Striving for a society responsible for the environment is also part of our ESG strategy. For instance, within the ARETE INDUSTRIAL real estate fund, we manage more than 80% of buildings under the international BREEAM sustainability certification, which allows us to increase the value of our properties while reducing our environmental impact.
