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.
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
Time has proven the stability of investments in industrial real estate
The challenging year of 2022, when bonds or stocks suffered record losses, was, on the contrary, a very positive period for industrial real estate. We are pleased that ARETE decided to invest in this real estate market segment several years ago. In an interview with TREND.sk, our colleague Igor Šnirc explains what led us to invest in this segment, what the current market situation is, and also what investors can expect in the near future. “We believed that there was great potential in this real estate market segment and that demand in the Central European region would need to be satisfied in the coming years. Our assumptions are being fulfilled so far. The rise of e-commerce as the world’s largest market, the inclusion of logistics properties in critical state infrastructure, record construction, and the relative resilience of this segment during times of worsening economic and geopolitical conditions have shown us that we have taken the right path,” describes Igor. https://lnkd.in/ehi7Jv5z
The land is not deteriorating and the industrial business is progressing today
The return of industry to Europe, together with the building of logistics and manufacturing real estate, is bringing skilled jobs back to the less developed regions. It is also a segment of the real estate market that is driving technological innovation and sustainable construction. “Today, industrial parks are full of modern technology, research centers, and offices, which in many cases also revitalize old brownfields. And if we are already building on greenfield sites, we try to follow ESG principles. Of course, sustainability and energy self-sufficiency of our business is important to us,” says Lubor Svoboda, co-founder of ARETE, in an interview with TREND.sk. We have unlocked the full interview from the series, of which we were an expert partner, for you to read. https://lnkd.in/gru_rPty
The return of industry to Europe represents an important opportunity for less developed regions
The return of industry to Europe represents an important opportunity for less developed regions. It is a chance to reverse negative trends, such as the depopulation of border regions. Industry can provide attractive job opportunities that have disappeared with deindustrialization. “We are not talking about manual labor. These jobs will disappear within a few years thanks to automation and robotization. I mean positions with higher added value for people with technical education,” explains Lubor Svoboda, co-founder of ARETE, in a January article for the Slovak magazine TREND.sk. Thanks to global trends, investors and real estate funds sense an opportunity that may not be repeated. Moreover, if declining regions damaged by the departure of industry thrive, the whole economy will also benefit. “Our job is to find suitable investment opportunities or sites and land for new development,” Svoboda adds. We unlock for you the full article from TREND.sk, of which we have become an expert partner. https://lnkd.in/ebCQDZkt
Industrial building boom pulled up industrial fund yields
As a result of the pandemic and the war in Ukraine, industrial and logistics real estate is now perceived as a critical infrastructure of the state. In addition, thanks to high demand and low vacancies of around 1%, this segment of the real estate market can maintain its value even in times of crisis. “At the same time, there is a lot of potential for growth. Due to the energy crisis, lessors are forced to look for cost savings and focus on sustainability and energy efficiency in properties. Older industrial parks are being renovated and modernized,” says Lubor Svoboda, co-founder of ARETE. Thanks to their resistance to crises, industrial real estate can thus play a stabilizing role in an investment portfolio and become a suitable complement to shares or bonds. This is why we invest in stable industrial real estate in Central Europe in our ARETE INDUSTRIAL fund. Over the years, we have built up a broad portfolio of premium tenants and industrial properties, which we continue to expand through acquisitions and our own development. Read more in the unlocked text from the Slovak TREND.sk, of which we were an associate partner. https://lnkd.in/e_nyqCTb
Industrial real estate is a new port of call for investors
The pandemic, supply chain crisis, and the war in Ukraine are reflected in the economy in terms of unprecedented inflation, rising debt, and interest rates unseen in the last 10 years. Meanwhile, the industrial real estate segment is reflecting this trend in increased construction costs, labor, and rising transportation and production costs. Nevertheless, demand for new industrial parks, halls, and logistics facilities is still unsatisfied even as both investors and tenants consider their investments and costs more carefully. Current market developments are still opportunities to be seized. “The development of modern technology and automation will be key. Technologically advanced companies need a background of educated and capable employees, who in our case also draw on the historical traditions of our countries. The Czech Republic and Slovakia are attractive locations, we just need to take advantage of this and create favorable and, above all, stable conditions for companies,” explains Robert Ides, co-founder of ARETE, in an interview with TREND.sk. The attached article is the first in a series of texts on alternative investing, of which we have become a partner. https://lnkd.in/ecRbWx_Q
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
CIJ Awards Slovakia 2022 – Best Asset Management Company
On yesterday’s gala evening in Bratislava we won the Best Asset Management Company in Slovakia category at the renowned CIJ Awards! We were delighted to receive the award, as we see it as a reflection of the hard and continuous work of the entire team, which is the core of the ARETE Group. Our third fund is once again the most profitable real estate fund on the Czech-Slovak capital market. The Slovak market also plays an important role in delivering our excellent results, as we have made significant purchases, especially in the last period, to expand the fund’s portfolio. In doing so, we support, among other things, the development of the Slovak economy and contribute to the long-term and sustainable development of the region. We see Slovakia as an attractive destination for investing and together with our existing and future tenants we will continue to strengthen our position in the Slovak market. In a strongly competitive market, the committee appreciated, among other things, our investment strategy, our active approach to portfolio management, the unique competence of our team in purchasing and developing industrial parks, and, last but not least, the repeatedly confirmed appreciation and above-average returns paid to our investors. This is the only way we are able to beat inflation even when it reaches sustained high levels. Success and awards are also a commitment to us. We are doing our utmost to repeat our investment success in the years to come. At the same time, we are confident that ARETE’s investors and partners will continue to stand firmly by our side. Thank you all very much for your support and CIJ EUROPE for the excellent organization. We appreciate the award immensely.
The future of alternative investments belongs to industrial parks
Alternative investments are an increasingly attractive topic for qualified investors. But what is worth investing the saved funds in? Wine? Antiques? Cryptocurrencies? All have their own drawbacks. But what about industrial parks? Dr. Josef Vojta wrote about their importance as an attractive alternative investment in the Slovak magazine TREND.sk.
