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!
We handed over ARETE Park Valašské Meziříčí to the global logistics company DB Schenker
The last unit of ARETE Park Valašské Meziříčí has been completed and handed over to the tenant, the global logistics company DB Schenker. The space of over 4,200 sqm aspires to the international BREEAM® Excellent sustainability certification for buildings. In ARETE Park Valašské Meziříčí we have completed the construction of the third unit with an area of over 4200 m2. The hall will serve as a warehouse and will be used by the logistics company DB Schenker, as well as the two previously completed units in this park. The company has signed a long-term lease agreement for a period of 9 years. The entire park in Valašské Meziříčí provides more than 25,000 m2 of premium space for light manufacturing, assembly and logistics. DB Schenker focuses on global transportation and exchange of goods through integrated logistics. It has 1,850 branches worldwide, over 725 warehouses and more than 72,700 employees. Its history dates back to 1872, when Gottfried Schenker founded Schenker & Co. Today, DB Schenker is a long-term and globally successful company and represents a creditworthy and stable tenant with an international rating for the ARETE Group. “Sustainability and energy self-sufficiency are some of the key areas in which we are actively growing. This would not be possible without our partners and customers who support us and share these values with us. This joint project is one of the important milestones on our path to a sustainable future,” says Tomáš Holomoucký, DB Schenker Regional Director for the Czech Republic and Slovakia. In ARETE Park Valašské Meziříčí, functional photovoltaics with a total capacity of 999 kWp are installed on the roof of two older buildings on an area of approximately 4,600 m2. The plant supplies 950 MWh of clean energy to DB Schenker annually, the rest of the electricity produced is sold to the distribution grid. In addition to its low energy consumption, ARETE Park Valašské Meziříčí is also friendly to native fauna. Two biotopes have been built in the park area – a wetland for amphibians and a unique “frog castle”, which will provide amphibians with shade by the water and shelter from predators or during the winter season. All of this helps not only to increase the sustainability of our buildings, in line with ARETE Group’s ESG strategy, but also to increase the value of the Fund’s assets. The newest hall is in the process of BREEAM® certification for building sustainability and aspires to the Excellent level. One of the older halls in the building already achieved BREEAM® Excellent certification in July this year. Lubor Svoboda, co-founder of ARETE Investment Group, comments on the award: “International studies confirm that managing properties according to the scientifically confirmed BREEAM method reduces the operating costs of buildings and at the same time increases the value of the building, which is particularly important news for our investors.” Park Valašské Meziříčí is part of the ARETE INDUSTRIAL fund portfolio.
Former Head of Pražská Plynárenská Building an Investment Strategy in Energy Transition with Arete
In an interview with Forbes magazine, Martin Pacovský introduces his role in the investment group Arete, where he has been working since April. The new investment strategy, Arete Energy Transition, which Martin leads, focuses on investments in energy transition. The fifty-one-year-old manager brings his experience in the energy sector to this project, while Arete contributes its investment know-how and a database of qualified investors. The newly prepared platform in the form of a fund will primarily invest in wind, solar, and gas power plants, including battery storage. Martin’s primary task will be to seek investment opportunities in the energy sector across Europe, with current interests in locations such as Spain, Germany, and Poland. What was also mentioned in the interview: “I think now is the best time to invest in energy. Uncertainty has entered the market, and it is this uncertainty that brings the most interesting investment opportunities.” You can read the full interview here.
We assess ESG trends in real estate to increase the market value of our properties
We have mapped ESG trends and reporting in real estate. We are one of the few in the Czech Republic to report our ESG activities under Article 8 of the European SFDR (Sustainable Finance Disclosure Regulation), which protects our investments from sudden regulatory changes and environmental risks. ESG appears among the top 5 factors that have had the greatest impact on the real estate industry over the past 20 years. This is according to a 2023 European survey, where ESG rise and focus appear just after low interest rates, the impact of the global financial crisis (2007/2008), urbanisation and the use of technology. At ARETE INDUSTRIAL, we have committed to environmental, social and governance goals as early as October 2023. Our commitments include, for example, ending the use of fossil fuels to generate electricity in all buildings and installing renewable energy sources. This environmental commitment not only increases the long-term market value of our properties, but also prevents losses due to regulatory changes. Among the regulatory changes we are evaluating is the revision of the Energy Performance of Buildings Directive (EPBD). This directive initially significantly dampens subsidies for fossil fuel boilers and subsequently phases out the use of boilers over the next 20 years. This is one of many measures that our comprehensive ESG Strategy is preparing us for. We are one of the few in the Czech Republic to report our ESG activities under Article 8 of the European SFDR. Together with PricewaterhouseCoopers (PwC) in Luxembourg, we have mapped the market in Central Europe and have not come across any other AIF or UCITS fund that has more extensive ESG reporting (under Article 9 of the SFDR) in the Czech Republic. As a “light green fund”, we therefore continue to support sustainability policies and monitor ESG trends, thanks to which our investment strategy is staying one step ahead. Frédéric Vonner, Sustainability and Sustainable Finance leader at PwC Luxembourg, explains the context and the outlook of ESG trends for ARETE: “Running an environmentally and socially sustainable business is increasingly recognized as critical for the real estate industry’s transformation. Driven primarily by the climate crisis, the industry’s move towards responsible capitalism over the next 20 years is expected to significantly influence real estate investment strategies, including Central Europe. Key trends include the imperative to refurbish or develop green and carbon-neutral buildings and the growing importance of social impact. Additionally, regulatory pressures and investor demands are accelerating ESG adoption, which is anticipated to significantly affect asset valuations and investment strategies in the region.”
