Real estate funds of the ARETE Group rank at the top of the market in terms of returns
ARETE INDUSTRIAL announced the purchase of a second industrial hall in Slovakia. The Belushi site, like the previous acquisition in Kežmarok, also boasts a long-term tenant with highly specialised production. The fund’s ability to capitalise on its own investments is among the highest in the region. The next strategy will be to look for purchasing opportunities in new markets, says Lubor Svoboda, founding partner of ARETE Group. The target value of ARETE INDUSTRIAL has been communicated at EUR 400 million. Where are you currently on the road to this goal? You are right, we are targeting our fund to have a value of assets under management of EUR 400 million. We are currently about a quarter of the way there. The momentum in terms of capital raising and investment opportunities gives me a clear signal that we should reach our target within the set timeframe. In any case, we always pay attention to the quality of the assets we buy, the tenants and, of course, the return on the fund that we communicate to our investors. And because ARETA’s key managers are also investors in the fund, we want to achieve an appreciation of over 10% p.a. That is our main objective. The demand for industrial real estate is growing and so is the yield on it. Does this complicate the search for acquisition opportunities? Liquidity in the industrial property market is good. The positive mood is also reflected in the massive year-on-year increase in the number of transactions. Objectively, there are fewer buying opportunities on the market. On the other hand, we are recording the highest volume of acquisition opportunities for our fund in recent years. This is due to the fact that we are able to find investment opportunities outside the open market and that we are able to develop new industrial parks ourselves. Our comprehensive approach has benefited greatly from the very strong demand for rental space in industrial properties. What are your fund’s immediate acquisition plans? Unfortunately, I can’t be too specific. In any case, we would like to double the value of the assets in the fund in 2022 compared to the end of 2021. I can also reveal that the Czech Republic and Slovakia will continue to be our key markets. We would also like to add one or two industrial parks in Germany or Austria. How is investor interest in putting money into your funds changing? ARETE funds are among the most profitable in their segment in Central Europe. I am pleased that the interest in investing in our current fund is continuously very good, even after the beginning of the Ukrainian crisis. Investors are looking for products that target above inflation, which our product fulfils. At the same time, it comes with very low volatility and a readable economic prospectus. The combination of the above is attractive to investors. This applies to private and institutional investors at the same time. Has the war in Ukraine affected the perception of Slovakia by foreign investors? We are dealing with various partners and investors from practically all over the EU and so far we have not encountered any of the entities changing their view of the stability and prospects of Central Europe, especially the Czech Republic and Slovakia, in a negative way. What was the Fund’s appreciation in 2021 and what is your forecast for this year? Thanks to the excellent work of the entire portfolio management team, we achieved a high appreciation of more than 24% last year alone. Given the above, it is difficult for me to predict the appreciation for this year, however, all the newly executed transactions and the portfolio as a whole meet the investment parameters and strategy of the fund. Thus, I believe that 2022 will once again be an above-average year in terms of asset appreciation. At the end of last year you established cooperation with Partner Asset Management. Why are institutional investors and distributors important to you? The fund targets both institutional and private investors. The cooperation with Partners Asset Management, which we value very highly, is a logical outcome of our activities aimed at increasing the involvement of institutions both in direct investments in the fund and in the distribution of the fund’s investment shares. In my opinion, we are making the most of the potential of the combination of private and institutional money. Increasingly, we are turning our attention to investors from German-speaking countries. The postcovid time war period and the current crisis in Ukraine have greatly destabilised supply chains. Do you see an increased need to build up safety stocks? Definitely yes. To give an example. Prior to the development of one of our industrial parks, we agreed with the tenant that only the first phase of the project would be implemented and that the second phase would be implemented within approximately two years. Just before signing the contract documents, the tenant’s representatives informed us that they needed to expand the warehouse space immediately. As a result, both phases were implemented at the same time. We have several analogous examples. At the same time, in certain regions, we register a really significant excess of demand for storage space over supply. The consequence is that rents are rising. Do you see the high prices of building materials or the lack of them as a bigger problem? We currently have several industrial parks under construction, and so far the supply companies have managed to secure materials in sufficient quantities. Although we believe that the problems in the materials and raw materials market are short-lived, higher prices are likely to persist. We have already reflected this in our capital budgets. Given the size of our portfolio and the fact that only a portion of our properties are newly developed, higher prices for certain materials will not have a material impact on the performance of the Fund’s portfolio as a whole. How do you implement sustainability principles into your investment strategy? We are preparing a comprehensive ESG
Just before the end of the year, the third fund of the ARETE Group completed the acquisition of the production area in Vráble, which is leased by Nanogate
The third fund of the ARETE Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe has completed just before the end of 2021 the acquisition of the Nanogate Slovakia production plant belonging to the American Techniplas Group. The Techniplas Group is the world’s leading manufacturer of technologically precise and technically complex plastic components. The modern production plant with almost 15,000 sqm of production, storage and office space is the second completed transaction of the third ARETE fund in Slovakia this year, with the value of the transaction exceeding EUR 11 million. “With the Nanogate Slovakia production plant in Vráble, West Slovakia, 20 kilometres from Nitra, our third fund is primarily gaining a long-term and stable tenant who is one of the leaders in its field. Nanogate provides a complete plastic injection solution. Its customers are companies from the electronics, automotive and aerospace industries, as well as companies from the field of medical and packaging technology. Since this year, Nanogate’s European production plants have belonged to the American Techniplas group. In addition to an excellent international rating, the production plant in Vráble gained access to the parent company’s top know-how and new global markets. The tenant’s intentions in the locality are long-term, as evidenced by the prepared investments in technologies in the order of millions of EUR. The acquisition of the production plant took place in a sale-and-leaseback structure, and we would like to appreciate the very constructive and open negotiations on the part of Nanogate’s representatives,” said Lubor Svoboda, co-founder of the ARETE Group. Igor Mlynarčík, CEO and Managing Director of Nanogate Slovakia, adds: “The ARETE Group has been able to offer us a package of services that will enable us to focus on our core business and provide customers with better services and products in the future. At the same time, we are gaining a strong and professional partner in the field of real estate, which will ensure greater user comfort and a professional approach to solving open points. The process of the whole transaction and the time course represented a great challenge, which was realized thanks to the very pragmatic approach of the teams of both companies, the high level of professionalism and the proactive approach. We are already looking forward to cooperating on future projects.” “We are pleased to welcome Nanogate Slovakia to our portfolio of premium tenants. From the point of view of the entire portfolio of our third fund, we acquire a quality tenant who, with its business focus and business profile, perfectly contributes to the fulfilment of our diversified real estate portfolio strategy. We have a very strong perception that, in addition to tenants from the logistics and e-commerce segments, it is necessary to stabilize the portfolio through long-term leases, especially with manufacturing companies. In line with our business strategy, industrial real estate in Slovakia will represent a significant part of our portfolio in the long run. We are therefore very pleased that we have managed to complete the transaction this year. From the point of view of the long-term sustainability of the entire project, we plan the gradual introduction of renewable energy sources and BREEAM certification will also be a matter of course. We already consider these activities to be the standard for building industrial portfolios today,” concludes Robert Ides, the second co-founder of the ARETE Group. https://tiskovezpravy.hn.cz/c1-67018390-tesne-pred-koncem-roku-dokoncil-treti-fond-skupiny-arete-akvizici-vyrobniho-arealu-ve-vrablich-ktery-ma-v-najmu-spolecnost-nanogate-hodnota-transakce
Big players are investing in industrial real estate today
Read the full interview of the co-founder of the ARETE Group, Robert Ides, for the weekly TREND.sk, where you will learn, among other things, why we prefer closed-end investment cycles and why it is not good to combine several real estate classes in one investment portfolio, which you want to sell well. Full article here (in Slovak): https://www.trend.sk/financie/velki-hraci-dnes-investuju-priemyslu-rozdiel-hotelov-kancelarii-totiz-zaraba?itm_modul=trend_topbox&itm_brand=trend&itm_template=hp&itm_position=6
Industrial real estate in ARETE is an investment boutique
Real estate is still considered one of the best forms of long-term investment. An interesting form of investment is industrial real estate, which can represent the most stable assets in this period. Robert Ides, co-founder of the ARETE investment group, said more about this topic. Investments in industrial real estate are not as well known as other types of investment funds. Why did the ARETE group decide to focus on this type of investment? The whole interview with Robertem Ides can be found here: https://www.trend.sk/biznis/priemyselne-nehnutelnosti-arete-su-investicny-boutique
New member of Arete team strengthening link to Slovakia will be Igor Šnirc
Arete reality group expanded its team with a new colleague Igor Šnirc. He will be in charge of Slovakian market in regard to existing and future assets and acquirements. Already during his studies, he held position in the international advisory firm of Jones Lang LaSalle as a consultant for the whole of Slovakia where he realized transactions with Lidl, Continental AG or Orange among others. https://www.investujeme.cz/tiskove-zpravy/posilou-tymu-arete-a-spojkou-pro-slovensko-se-stal-igor-snirc/
The Czech Fund Arete Invest wants to invest 30 million euros in Slovakia
The Fund wants to invest, for example, in the new constructions in own areals. BRATISLAVA. Czech Investment Real Estate Fund Arete Invest plans to invest approximately EUR 30 million in Slovakia in 2018. The Fund is considering investing in two areas: to invest in new construction in the areals he already owns and at the same time the Fund has selected some investment opportunities and started negotiations on new acquisition opportunities that already bring return. https://ekonomika.sme.sk/c/20686558/cesky-fond-arete-invest-chce-investovat-na-slovensku-30-milionov-eur.html https://spravy.pravda.sk/ekonomika/clanok/446839-cesky-realitny-fond-chce-investovat-na-slovensku-30-milionov-eur/
Arete Invest: 2.Q results 2017
Arete Invest, a fast growing fund focused on real estate investment, has released its results for the second quarter of this year. The value of managed properties in the Fund's ownership increased to 53.5 million euros. The gross quarterly return of the currently open sub-fund Arete Invest CEE II was 9.8% p.q. and exceeded expectations four times. http://www.kancelarie.sk/novinky/arete-invest-vysledky-za-2-q-2017
Arete Invest won the Czech Top 100 award
Arete Invest, a rapidly growing real estate investment fund, won the prestigious Czech Top 100 – Special Award for Innovation and Transparency in the Czech Republic's Investment Market during a gala evening in the Spanish Hall of Prague Castle. http://kancelarie.etrend.sk/novinky/arete-invest-ziskal-cenu-czech-top-100
Where to invest to get the most out of it?
Experts advise how to best value their money in 2017. Lubor Svoboda, Co-Founder and Chairman of the Board of Directors of Arete Invest: I have three absolutely “non-repeatable” principles. The best investments are those that: https://peniaze.pravda.sk/sporenie-a-investicie/clanok/431827-kam-investovat-aby-ste-co-najviac-zarobili/
Real Estate Fund Arete Invest achieved 25.7% returns
Arete Invest, a rapidly growing real estate investment fund, has published its audited results for the past year. The total audited earnings after tax reached almost CZK 92 million (approximately EUR 3.47 million), the gross revenue of the currently open sub-fund Arete Invest CEE II was 25.7%. Audit of the results was carried out by Deloitte. https://www.investujeme.sk/tlacove-spravy/realitny-fond-arete-invest-dosiahol-vlani-vynos-25-7/
