Lubor Svoboda, co-founder of the investment group ARETE, summarizes in an interview for the magazine Týdeník Ekonom how the group’s business has been affected by COVID and the war in Ukraine, and reveals plans for the next few years.
We are the only entity on the Czech real estate market that has twice closed an investment fund and settled all investors, moreover, during very challenging times and exceptionally successfully. The first sub-fund was closed in 2017 with a gross yield of 39% p.a., and the closing of the second sub-fund followed in 2021 with an average gross yield of 11% p.a. Third close-end fund, focused on European industrial real estate, was opened at the end of COVID and is currently in an extension phase to monetize on recent real estate repricing.
And our longer-term plans? Within few years we would like to manage assets exceeding one billion euros, which will be divided into multiple strategies and spread across multiple countries. We are working on transforming from an investment group focused on the Czech Republic and Slovakia into a European group that will attract capital to this continent from around the world. With several new, institutional-grade strategies being shortly introduced, we’re extending presence to new capital markets in Europe and APAC.
The current situation in the industrial real estate market is playing into our hands. The market is experiencing a significant investment and price slump. As acquisition seekers, we face little competition, currently holding cash and with low indebtedness as a group. Moreover, in the coming months, we anticipate further corrections in property prices, making acquisitions even more advantageous. Such a favorable combination of conditions arises once in a decade.
You can find the full interview below. More information about the ARETE INDUSTRIAL fund, which focuses on income-generating industrial properties from the European region and is still open to qualified investors, can be found here.
