The transfer of manufacturing and logistics capital is a significant opportunity
Lubor Svoboda, one of the co-founders of the ARETE Group, was featured in the Biznis program on the Slovak TV channel TA3. The discussion revolved around investing in industrial real estate, and among other things, the conversation included:For the Czech Republic and Slovakia, the trend of shifting manufacturing and logistics capital from Asia to Europe presents a significant opportunity. This movement is primarily driven by companies aiming to safeguard their supply chains. Additionally, there’s a shift in production and logistics from Western to Central Europe. The demand for industrial real estate remains high in the Czech Republic and Slovakia, with an extremely low vacancy rate in this property category. At ARETE, we invest in high-yield industrial and logistics real estate within a closed investment cycle, while introducing international standards to industrial properties in the Czech Republic and Slovakia. You can access the full interview here:https://www.ta3.com/relacia/905235/o-investovani-do-nehnutelnosti
Industrial real estate segment targeted by ARETE Industrial
Robert Ides, co-founder of ARETE, was a guest on Slovak Televízia TA3’s Biznis programme. The topic was the industrial real estate segment, which is the focus of our fund ARETE INDUSTRIAL. Among other things, Robert explained: ✅️ Why ARETE decided to invest in this part of the real estate market ✅️ Whether real estate can withstand the crises we are going through and retain its value ✅️ And why the Central European region is one of the best places to invest in logistics and manufacturing real estate You can watch the full interview here: https://www.ta3.com/relacia/28571/priemyselne-reality-maju-perspektivu
Invest In A Shopping Mall From 20 Euros?
Our colleague Dr. Josef Vojta was a guest of Lenka Buchláková in the programme Ekonomika+ on Televízia TA3. The following topics were discussed: why start investing, basic differences in investing in an investment apartment and an investment fund, what to pay attention to when choosing an investment fund, investing in real estate versus investing in shares. You can watch the full session here: https://www.ta3.com/relacia/27628/investovat-do-nakupneho-centra-od-20-eur
Investing Not Only For The Top 10,000
Our colleague Dr. Josef Vojta was yesterday a guest of Lenka Buchláková from Televízia TA3 in the show Investujeme. “It is important to see the current socioeconomic developments over a long-term time horizon of five years or more. Currently, we often talk about topics that are not beneficial to investing, but this time will soon be over and we will hopefully be able to discuss what investment instrument is most suitable to choose,” said Josef Vojta in the debate. Other topics were also discussed: Why invest in real estate funds. What determines the success of investments Self-sufficiency trends and deglobalization as an opportunity for investors Why investments that generate ongoing cash flow are better than for example investments in commodities You can watch the whole programme here: https://www.ta3.com/relacia/27114/slovaci-prichadzaju-rocne-o-stovky-eur-udia-by-mali-so-svojimi-usporami-pracovat-radi-financny-odbornik
Investment cycle of the ARETE Invest fund investment fund with variable capital, settled all investors and closed the investment cycle
The ARETE Investment and Real Estate Group, which includes real estate investment funds, paid out all investors from the ARETE INVEST Subfund CEE II after the March sale of the portfolio, and thus successfully closed the investment cycle. This is the second successful closing of the sub-fund and its deletion from the register of investment funds maintained by the CNB. The ARETE Group is the only one on the Czech market to close and settle investment funds at the end of the investment cycle, directly as part of the investment strategy. Following the sale of the sub-fund’s portfolio worth EUR 113.2 million (CZK 3 billion) in March to Cromwell European REIT (CEREIT), a publicly traded real estate investment trust listed on the Singapore Stock Exchange, the principal and returns of all sub-fund investors were duly paid out and all bank financing liabilities have been fully settled. This fulfilled all legal conditions so that the entire fund, including the sub-fund, could be deleted from the list of investment funds with legal personality maintained by the Czech National Bank with effect from 1 September 2021. “We evaluate the results of the entire ARETE Invest fund, respectively both of its sub-funds, clearly positive. We closed the first sub-fund investing in residential real estate with a total average gross return of 39% p.a. in 2017. The second sub-fund investing in quality logistics and light industrial real estate, which we have now settled, was able to deliver and pay its investors a total average gross return of 11% p.a., however, investors who subscribed for the sub-fund’s investment shares in the first wave achieved a gross return on investment of over 20% p.a.. The success of both sub-funds clearly underlines our group’s ability to prepare and implement the right investment strategy for each investment period,” said Lubor Svoboda, co-founder of the ARETE group. “In particular, the successful closing of the CEE II sub-fund, where we had more than 100 investors, must be assessed from the perspective of the year 2015, when we analysed market opportunities and prepared an investment strategy. At that time, industrial real estate was on the fringes of investor interest and accounted for less than one tenth of the volume of completed transactions worldwide. Our strategy was correct and clearly successful,” explains Robert Ides and continues: “In light of current events in the Czech and Slovak capital market, we see that our approach provides investors with a parametrically different level of security and fair treatment than the competition. Unconditional adherence to the investment horizon combined with the correct timing of portfolio sales are the result of precise fund management and control. Our asset valuations and revenues are based on the realized market price, real sales. We now move on. Our third fund is now in the investment phase, we want to fulfil our strategy again and build a much larger and coherent portfolio of high-quality industrial and logistics real estate in the region of Central and Eastern Europe with a target value of at least EUR 400 million. At the end of the investment cycle, we want to offer the portfolio again to institutional buyers.” The whole article in CZ: https://tiskovezpravy.hn.cz/c1-66982100-investicni-cyklus-fondu-arete-invest-investicni-fond-s-promennym-zakladnim-kapitalem-a-s-vyporadal-vsechny-investory-a-uzavrel-investicni-cyklus
ARETE among the Best of the Best – HOF Awards 2021
We would love to share with you our next, this time international success. We were nominated in two categories for one of the most prestigious awards in the European real estate world, the HOF Awards 2021 – Best of the Best Asset Management Company and in category Best of the Best Warehouse Development over 10,000 sqm. The 6th year of this prestigious HOF Awards for Central and South-Eastern Europe ceremony will take place on September 23rd in Prague. The HOF Awards 2021 will attract leading real estate professionals from all over the region, presenting the most successful companies and leaders. We appreciate both nominations immensely, because they represent a reward for the results of many years of work of the entire team of the ARETE group.
The 2020 CIJ Awards Czech Republic Best Asset Management Company of the Year Czech Republic 2020
Today, we would like to share with you the success we have achieved. As part of the 2020 CIJ Awards Czech Republic ceremony, we won the prestigious Best Asset Management Company category. The CIJ Awards are longest-running commercial property awards event in the Czech Republic and have evolved continuously over the past 20 years to keep pace with changes in local, regional and international property markets. The announcement of winners is usually a major cultural and social event. However, due to pandemic situation, it was not possible to organize the entire evening program. Nevertheless, we are very pleased that we were able to attend the event this year and it was our great honor to take over the award in person. Our co-founder Robert Ides accepted the award for our ARETE group. Robert shared his immediate impressions: “We are really happy to win in such a competition. Of course, the award and thanks go to our entire team. We appreciate CIJ Award immensely and it is a declaration of our long-term credibility and serious approach.”
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.
ARETE group successfully refinances its fund portfolio during the pandemic and now has a bank loan of up to EUR 80 million available
Prague, 3rd June 2020 – On 30th April, the ARETE investment and real estate group signed a contract with Raiffeisenbank for a loan of up to EUR 80 million. The funds will be used to refinance the existing real estate portfolio of ARETE’s second fund (ARETE INVEST CEE II sub-fund) and to invest into new industrial real estate construction while preserving a safe ratio of bank financing to fund asset value. For ARETE’s second fund this ratio is currently 43%, one of the lowest of all the qualified investor funds on the market. “Our real estate portfolio is high quality, with high value and profitability. The provided credit line of EUR 80 million shows that our fund is stable and resilient even in the current situation when the provision of new loans by banks is stagnating – the confidence shown in us by Raiffeisen is definite proof of that. Financing with such an amount at a time like this is really an exceptional success,” said Lubor Svoboda, ARETE group co-founder. “The funding brings our fund high stability and the certainty of sufficient capital backing. Yet it also brings new potential for portfolio growth, as the loan will be used flexibly based on our actual needs. This will allow us to take advantage of new opportunities on the market. At the same time, we want to keep the bank loan to asset value ratio at a safe level. It is at times like these that our strategy of lower indebtedness proves to be an unequivocal competitive advantage,” adds Robert Ides, the other ARETE group co-founder. The preparations for the refinancing and provision of a new credit line took a few months and the final agreement was made on 30 April. The goals of the newly signed contract were to simplify the administrative load arising from the eleven separate existing loans, and to enable higher flexibility for the funding of new construction. The legal aspects of the entire transaction were supervised by experienced law firms – Kocián Šolc Balaštík for ARETE and Clifford Chance for the bank. The second ARETE fund was established in 2016 and is gradually building up a homogeneous portfolio of industrial real estate in the Czech Republic and Slovakia. The total cumulative gross return for 2019 reached 115%, while the gross return for the previous year was 8.9%. The value of the managed assets at the end of 2019 exceeded CZK 2.4 billion and will grow further in 2020 thanks to halls currently being completed. This fund was closed for the entry of new investors in 2018. A third ARETE group fund opened for investors at the beginning of 2020 that will not only invest into completed industrial real estate in Central and Eastern Europe but also itself construct new logistics and manufacturing buildings. The portfolio target value should come close to CZK 12 billion, and the portfolio should include over 600,000 m2 of leasable area and over 300,000 m2 of building land for further construction.
Arete Invest and EY held conference for investors
The conference for investors was held in the EY company headquarters of which Arete transparent fund is a partner. The main theme this year was „Financing and Costs of Investment Capital“ which was taken up by Robert Ides, the cofounder of Arete Invest, with partners from the EY David Zlámal and Lucie Říhová and other fellow experts on capital, debt and fiscal investment. „I think we have successfully followed up on the last year’s conference and established a tradition of an expert conference applying global lenses to development and behavior of the Czech market. Very open discussion aiming to offer knowledgeable opinion on the reality market and various financial instruments is probably an aspect most appreciated by the participants and we believe this will continue. https://finparada.cz/zprava_banka.aspx?ID=17600
