ARETE ENERGY TRANSITION finalizes its first acquisition: BIO TERM cogeneration plant in Poland
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.
ARETE Enters the Polish Market
We have completed the acquisition of a major logistics park in western Poland. With this move, ARETE expands its operations beyond the Czech Republic and Slovakia, entering the Polish market. This acquisition strengthens the portfolio of the ARETE INDUSTRIAL fund, increasing its total leasable area by 25% and raising the value of assets under management to over EUR 300 million. In this significant move, which is in line with the group’s strategy of investing in high-quality logistics assets in strategic locations in Europe, ARETE is expanding into the Polish market. The park will be part of the ARETE INDUSTRIAL real estate fund portfolio. The park is located in the city of Zgorzelec and represents a Class A logistics facility with a BREEAM Excellent certification, offering a total leasable area of approximately 65,000 m2. Its key location on the Polish-German border provides direct access to major European markets. The park is fully leased on a long-term basis to the prestigious tenants, including a European manufacturer of disinfectants and hygiene products and a leading logistics operator running a distribution center. The city of Zgorzelec offers numerous advantages for logistics and industrial operations. Its strategic cross-border location provides seamless access to both the German and Polish markets, with excellent connections to major highways, including the A4, which is part of the European Transport Corridor III. This ensures efficient transport to major cities like Dresden, Berlin, and Wrocław. The region also offers access to a skilled workforce from both Poland and Germany and serves as an industrial hub focused on manufacturing, retail, and services. With the acquisition of this park the total leasable area of the ARETE INDUSTRIAL fund will increase by 25%, and the value of assets under management will exceed EUR 300 million. Geographically, the leasable area of the fund is now distributed as follows: 48% in the Czech Republic, 27% in Slovakia, and 25% in Poland. The park combines high functionality with environmentally friendly solutions. The BREEAM Excellent certification confirms its high energy efficiency and low carbon emissions. The facility is equipped with advanced energy management systems, LED lighting, and systems to limit water usage, meeting the needs of tenants seeking both sustainable and modern logistics spaces. The project is thus fully in line with ARETE Group’s ESG strategy and confirms its commitment to sustainability and modern infrastructure. This acquisition represents another key step in our expansion strategy in Europe and offers significant growth potential.
Frog castle made of trees: increasing the value of ARETE Park Valašské Meziříčí with BREEAM
We sustainably increase the value of the ARETE Park in Valašské Meziříčí by developing the property with respect to tenants, investors and the environment. Under professional supervision and based on the BREEAM scientific method, we built a wooden “frog castle” for amphibians. The amphibians hide in it to escape the increasing heat and drought. By promoting biodiversity, we consistently meet international conventions, European directives and our voluntary commitments, and thus increase the value of the Valašské Meziříčí site for all stakeholders at minimal cost. With temperatures rising twice as fast as the global average in the Czech Republic, many living things are seeking shelter from heatwaves and droughts. Among them are the frogs that have taken up residence in the ARETE Park Valašské Meziříčí. Therefore, in accordance with the internationally recognized Building Research Establishment Environmental Assessment Method (BREEAM) and under the guidance of authorized landscape architects, we decided to build a home for amphibians, or “frog castle”, out of wooden logs in the ARETE industrial area. By doing so, we are supporting the diversity of animals found in our industrial parks, fulfilling our commitment to promoting biodiversity and working to protect animal species and their habitats. Although this is a gentle and low-cost solution, it contributes significantly to the long-term value of the property for all parties involved. The “frog castle” offers amphibians in the ARETE area a home in the shade, by the water and in hiding from possible predators. The side wall of the “frog castle” consists of logs, the filling is provided by smaller twigs. Frogs in the wild often use logs or tree stumps or rocks for shelter. These are all elements of the “frog castle”, which is 1 meter high and has an area of 2 x 1.2 meters. The refuge is connected to the water surface by pebbles and parts of cumin seeds. During the winter, it will provide a home for amphibians where they can safely hibernate. According to data from international real estate consultancy JLL (Jones Lang LaSalle), comprehensive and sustainable development of buildings using BREEAM increases the capital value of a property by an average of 20.6%. The value is based on analysis of 600 transactions in London between 2017 and 2021. Sustainability certification not only demonstrably adds value, but also reduces the financial risks associated with increasingly stringent energy and environmental regulation. Structures such as the ‘frog castle’ help meet EU habitats directives or the EU’s strategic diversity targets for 2030.
For the sixth time, we participated in the Good Will Run
On Tuesday, September 10, 2024, the 6th annual Good Will Run charity race organized by The Committee of Good Will – Olga Havel Foundation took place. Some of our colleagues from Arete participated in the company relay, running 4×2.5 km. This was our sixth year in the race. All proceeds from the event will be donated by the foundation to support families in need. We are always happy to contribute to a good cause, and we plan to continue supporting the foundation in the future. The Committee of Good Will – Olga Havel Foundation, over its more than three decades of existence, has helped numerous individuals and has distributed hundreds of millions of crowns to nonprofit organizations for charitable purposes. We thank our colleagues for participating and look forward to next year’s race!
