We create portfolios that are making money
“Closed investment cycles are fair play for both parties. Investors know how long the capital is invested, we know how long we can work with it,” says Lubor Svoboda, co-founder of the ARETE investment and real estate group. According to him, ARETE funds can build a quality portfolio of industrial real estate, which in turn can be more easily sold to a very creditworthy world buyer willing to pay the premium price. Fund ARETE INDUSTRIAL, which targets EUR 400 million of assets under management over a five-year horizon with targeted annual return of up to 10%, is open for investors. Find out more about our fund in an interview with ARETE co-founder Lubor Svoboda for the monthly Magazín Reportér: https://lnkd.in/dHqrmH5d
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, is gradually fulfilling the strategy and investment objectives of its third fund, ARETE Industrial, which have been set for this year. At the same time, it intensively improves the management team. At the end of September, Miroslav Barnáš, who worked in the Jones Lang LaSalle (JLL) Group for more than 15 years and for the last 4 years as CEO of Czech Republic & Slovakia, strengthened the team from the position of a member of the Supervisory Board of ARETE Industrial and the manager responsible for the group’s transactions. On October 1st, Alica Koblovská took over the position of Chief Legal Officer of the ARETE Group, which worked for many years in the law firm Kocian Šolc Balaštík and most recently participated in the management of the BM Management family office from the position of General Counsel. Alica also became a member of the Supervisory Board of the fund ARETE Industrial. “For this year, we have set ourselves the goal of carrying out a total of five transactions worth a total of 1.5 billion Czech crowns. In terms of business structure, new development projects now slightly predominate over yielding assets, however, for next year’s acquisitions we assess and manage due diligence mainly on income generating assets. I’m optimistic that we will most likely meet the investment targets set for this year. At the same time, we received a positive response from investors to close our second sub-fund. For this reason, we are also succeeding in fulfilling our goals in the area of fundraising,” concludes Robert Ides, co-founder of the ARETE Group, with a positive assessment of the development of the third fund. Lubor Svoboda, the second co-founder of the ARETE Group, continues: “In order to be able to meet the set development goals of the group and our funds, it is essential that we constantly strengthen our team. I’m very pleased that Miro Barnáš is now a member of the Supervisory Board of ARETE Industrial and the manager responsible for ARETE Group transactions, whose experience in managing the JLL Group in the Czech Republic and Slovakia will undoubtedly help build a stable and profitable portfolio of our third fund. Miro has over 15 years of experience in the field of commercial real estate, especially in the field of investments, valuations, leases, construction and property management. He has led or participated in a number of acquisition or sale transactions on the capital markets in the countries of Central and Eastern Europe, especially the Czech Republic and Slovakia. From 2011 to 2020, he worked for the international real estate consulting company Jones Lang LaSalle, holding various managerial and managerial positions (Managing Director, Head of Capital Markets and finally CEO). He graduated from the University of Economics in Bratislava and has been a member of the Royal Institute of Chartered Surveyors (RICS) since 2011.” The second significant reinforcement of the ARETE team is Alica Koblovská. Alica worked for over 6 years in the law firm Kocian Šolc Balaštík, focusing mainly on real estate and commercial law. She comes to ARETE from the BM Management family office, where she has held the position of General Counsel for the last more than 4 years. She has participated in the company’s international transactions in the area of Venture Capital & Private Equity. Lubor Svoboda adds: “From the position of Chief Legal Officer of the group and a member of the Supervisory Board of ARETE Industrial, Alica will be responsible for the legal and procedural support of our projects and investment structure. I’m convinced that her ability to combine the legal aspects with a business perspective will help us mainly in the successful growth and fulfilment of the acquisition goals of our funds.”
We completed one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone.
The third fund of the ARETE Group was an extraordinary success and completed the acquisition of a production and storage complex with development potential in the Plzeň – Borská pole industrial zone. Investments in Pilsen will reach almost EUR 20 million. The third fund of the ARETE Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe completed in October one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone. After the completion of all phases of development, the new ARETE PARK Plzeň Borská pole will provide a total of 18,202 m2 of premium areas for light production, assembly and logistics. ARETE plans to invest almost EUR 20 million in the new park. “The acquisition in the Plzeň – Borská pole industrial zone was one of the highest priorities we set for this year as part of the investment strategy of our third fund, and we are very pleased that we managed to complete the acquisition. The location Borská pole is historically the centre of production and logistics in the region and has long been considered a premium throughout the Czech Republic. It is not only about logistics and production, but above all about high-tech research and development centres and other highly qualified activities. The connection of the Borská pole industrial zone is ensured by two motorway feeders within 5 minutes on the D5 motorway connecting Prague and Germany,” said Lubor Svoboda, co-founder of the ARETE group. “There are 6,000 sqm of rental space immediately available for short- to medium-term rent in the complex. However, the strategic intention is to develop the entire park, which will provide more than 18,000 sqm of premium space for light manufacturing, assembly and logistics. The specifications of production and storage areas meet the latest standards, such as LED lighting, 10.5 m storage height, excellent thermal insulation parameters, concrete exterior surfaces, etc. All design specifications aim to minimize operating costs for tenants of the park. As part of the new construction, the principles of long-term sustainability of the entire project, the use of renewable energy sources and, of course, BREEAM certification will be applied. We plan to complete the park by the end of 2022,” explains Robert Ides, the second co-founder of the ARETE group. “The completion of this transaction is the third of a total of five anticipated transactions this year. By the end of 2021, we would like to value of 1.5 billion Czech crowns in assets under management, consisting of yielding assets and our new developments,” concludes Lubor Svoboda a very positive assessment of this transaction and the current development of the third ARETE fund.
The third fund of the ARETE was an extraordinary success and completed the acquisition of a production and storage complex with development potential in the Plzeň – Borská pole industrial zone. Investments in Pilsen will reach almost EUR 20 million
The third fund of the ARETE Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe completed in October one of this year’s key acquisitions – a production and storage facility in the Plzeň – Borská pole industrial zone. After the completion of all phases of development, the new ARETE PARK Plzeň Borská pole will provide a total of 18,202 m2 of premium areas for light production, assembly and logistics. ARETE plans to invest almost EUR 20 million in the new park. “The acquisition in the Plzeň – Borská pole industrial zone was one of the highest priorities we set for this year as part of the investment strategy of our third fund, and we are very pleased that we managed to complete the acquisition. The location Borská pole is historically the centre of production and logistics in the region and has long been considered a premium throughout the Czech Republic. It is not only about logistics and production, but above all about high-tech research and development centres and other highly qualified activities. The connection of the Borská pole industrial zone is ensured by two motorway feeders within 5 minutes on the D5 motorway connecting Prague and Germany,” said Lubor Svoboda, co-founder of the ARETE group. “There are 6,000 sqm of rental space immediately available for short- to medium-term rent in the complex. However, the strategic intention is to develop the entire park, which will provide more than 18,000 sqm of premium space for light manufacturing, assembly and logistics. The specifications of production and storage areas meet the latest standards, such as LED lighting, 10.5 m storage height, excellent thermal insulation parameters, concrete exterior surfaces, etc. All design specifications aim to minimize operating costs for tenants of the park. As part of the new construction, the principles of long-term sustainability of the entire project, the use of renewable energy sources and, of course, BREEAM certification will be applied. We plan to complete the park by the end of 2022,” explains Robert Ides, the second co-founder of the ARETE group. “The completion of this transaction is the third of a total of five anticipated transactions this year. By the end of 2021, we would like to value of 1.5 billion Czech crowns in assets under management, consisting of yielding assets and our new developments,” concludes Lubor Svoboda a very positive assessment of this transaction and the current development of the third ARETE fund.
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
We won the prestigious European award Best of the Best HOF Awards 2021
We are celebrating a truly extraordinary success. As part of the annual European Best of the Best HOF Awards 2021, we won the very prestigious Best Asset Management Company category. This praised not only the successful sale of the second sub-fund’s portfolio and the appreciation achieved for investors, but also the innovative and market-unique investment strategy of ARETE funds based on closed – end investment cycles that close the balance with the sale of all fund assets and full payment of principal and return to investors. The Best of the Best Hall of Fame Awards 2021 is a European award, with only the winners of the CIJ Awards from individual European countries being nominated. The CIJ Awards are among the oldest and also the most important awards in the field of commercial real estate. Both of our co-founders accepted the award for our ARETE group. Lubor Svoboda and Robert Ides didn’t hide their enthusiasm after the ceremonial announcement of the winners within the CEDEM Conference 2021: “In the huge competition, we received an absolutely extraordinary award. This award is very important for us personally, because it led to it for an extremely long and difficult journey, which is behind us in ARETE. Many thanks to the whole ARETE team.” https://tiskovezpravy.hn.cz/c1-66980920-skupina-arete-ocenena-hall-of-fame-cij-awards-central-eastern-europe-za-rok-2021-v-kategorii-best-asset-management-company
Run of the Committee of Good Will – Olga Havel Foundation
Just like last year, this year we took part in the Run of the Committee of Good Will – Olga Havel Foundation and we were very happy to support families in need again. This event is already a tradition at ARETE and we are already looking forward to participating again next year!
The third fund of the ARETE group has acquired a modern production and storage complex with development potential near Prague and is now preparing for further new construction. The investment reached almost EUR 10 million
The third fund of the ARETE Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe completed in July the acquisition of a production and storage facility near Beroun, 20 km from Prague. This is the acquisition of a complex used for the production and storage of the Czech company Hronovský s.r.o., which was founded in 1990 and is one of the leaders in the field of cable assembly production, machining on CNC machines, pressing of plastic components and assembly of mechatronic components. The financial volume of the transaction exceeded almost EUR 10 million. “The basis of our investment strategy is the diversification of the real estate portfolio in the fund. For a long time, we have been striving to purchase a property in the wider vicinity of Prague, which would not only bring immediate rental income, but also have free land available for new development. Thanks to its location on the D5 motorway, between exit 28 and exit 22, the location offers immediate development potential. The current tenant has a quality international D&B rating of 2A1. An important factor for us is that the tenant is interested in operating in the locality for a long time, which is confirmed by an extensive investment program into the latest technologies. We are pleased to welcome company Hronovský to our portfolio of premium tenants, “said Lubor Svoboda, co-founder of the ARETE Group. “Above-standard equipped industrial complex completed in 2005, which has almost 14 thousand sqm of leasable area with the possibility of expansion by another almost 12 thousand sqm. The existing buildings fully comply with the most modern standards required for production and modern methods of storage, incl. e.g. building height and technological equipment. From the point of view of the availability of manpower, the complex benefits from the proximity of the towns of Beroun and Zdice. At present, the company produces in four plants in the Czech Republic and in one in Bulgaria, when in 2020 the company expanded its production in modernized premises in this property in Zdice, “explains Robert Ides, co-founder of the group. “The completion of this transaction is the second of a total of five anticipated transactions this year. By the end of 2021, we would like to value of 1.5 billion Czech crowns in assets under management, consisting of yielding assets and our new developments”, concludes Lubor Svoboda a very positive assessment of this transaction and the current development of the third fund. The entire transaction was legally supervised by the experienced law firm Kocian Solc Balastik, advokatni kancelar, s.r.o..
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.
Will Ondřej Lieser write another shining chapter in his successful golf career? The Olympic golf tournament starts on Thursday.
Will Ondřej Lieser write another shining chapter in his successful golf career? The Olympic golf tournament starts on Thursday. The golf tournament at the Tokyo Olympics begins on Thursday this week. On one of the oldest courses in Japan, the best Czech golfer Ondřej Lieser is fighting for Olympic medals among the stars of world golf. The whole team of the ARETE group will, of course, keep their fingers crossed for Ondřej.
