ARETE’s production halls in Uherské Hradiště and Košice approved for use, investments reaching almost EUR 20 million
“We are glad we have managed to finish construction in both locations within the planned deadlines. We have also coped well with the complications arising from the coronavirus pandemic, which have caused suspensions of construction work and disruptions in material supplies. Yet in spite of this, the premises were ready for the tenants sooner than expected,” said Lubor Svoboda, ARETE group co-founder. “Our own construction projects prove that we are able to further expand our real estate portfolio, significantly contributing to increasing value for our investors. In addition, we want to support – beyond our obligations – the whole regions where we operate. For example in Veľká Ida, where our newly built production premises are located, we have donated a children’s playground to the village,” Lubor Svoboda added. New premises in Košice A set of two specialized production halls for Steelcon Slovakia, a member of the Danish Dominion Steelcon Group specializing in the manufacture of steel chimneys, has been built in the Veľká Ida industrial zone. It is located in the immediate vicinity of the city of Košice, Slovakia, and has long been on the radar of foreign manufacturing companies. “Steelcon Slovakia, a member of the Dominion Group, is a highly stable and globally growing company. It has already supplied over 6,500 industrial steel chimneys worldwide, making it a global leader in the industry. We have acquired a genuinely important long-term tenant for our production hall,” Lubor Svoboda stressed. The funds invested into this construction project, strengthening the attractiveness of the Slovak investment market, amounted to EUR 13 million. The construction work was launched in November and approved in August. Extension of the hall in Uherské Hradiště Intensive work on the expansion of the existing Forschner production hall in ARETE’s industrial park in Uherské Hradiště began last year, and the tenant was able to start its preparations for production in the new spaces on time. The project includes, among other things, the construction of modern clean operations for the manufacture of electric vehicle components pursuant to the highest international standards with constant temperature and humidity. The construction project naturally includes a rainwater infiltration solution. Other integral parts of the hall include modern office and sanitary facilities for employees. The Class A industrial complex in Uherské Hradiště with its excellent transport links to Slovakia and the South Moravian Region has been part of the Arete portfolio for four years now. It offers a total production and storage area of 12,750m2, of which 1,034m2 is specialized clean operations. The entire premises are leased to Forschner, initially a German family firm which has grown into a multinational corporation. It specializes in electromobility, manufacturing cable and electromechanical systems and other components, primarily for the automotive industry. Its clients include Audi, Continental, Daimler, Volkswagen, Philips and Bosch.
Breakfast of champions
Six years ago, Lubor Svoboda seized “not entirely sexy” investment opportunities in the form of industrial real estate, from which he and Robert Ides built ARETE – the most profitable real estate funds in the Czech Republic. They can generate a yield of over 20 percent per year and, in addition, they have managed all the pitfalls of the coronavirus crisis with no harm.
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
The construction of industrial real estate increased by a record number in the first half of 2020
The main sectors that dominated the demand for industrial and warehouse space during the coronavirus pandemic with a total share of 53% are logistics companies and large e-shops, whose services rose sharply in the second quarter. This was followed by manufacturing companies with 37 percent. Logistics leased 62% of new premises and production 28%. Lubor Svoboda, co-founder of the ARETE Group, which invests in industrial real estate through its funds, adds market data: “During the coronavirus pandemic, our funds saw increased demand for storage from large logistics companies and the e-commerce segment. Due to the stability of the industrial real estate segment, our group is preparing several acquisitions of larger industrial parks. I think that in the second half of the year the transactions of interesting investment volumes will take place.” The article in Czech is available here: https://retrend.cz/novinky/vystavba-a-remodeling/vystavba-nemovitosti/
The ARETE group is strengthening its logistic premises and has attracted new lessees in the Czech Republic and Slovakia
Despite the Coronavirus crisis, the ARETE investment and real estate group has managed to fill vacant areas on its premises and extend contracts with lessees in recent months. In Nové Mesto nad Váhom, ARETE has prepared more than 7 thousand m2 of premises for TPL, a logistic company, intended primarily for food storage. CTE Cargo sped, a sea and air carrier, moved back to the premises in Lovosice, which cover an area of4.3 thousand m2 and the contract with Fiege, a company providing reverse logistics for the Zalando fashion brand, has been extended for eight years. The occupancy rate of all ARETE's premises is therefore now 100 %. The contract with Fiege concerning ARETE’s premises in Lovosice was extended in April for a total of eight years. Fiege provides reverse logistics with added value to the Zalando fashion brand, using a total of 3.4 thousand m2. In the first quarter, CTE Cargo sped, a company specialising in sea and air cargo, operating in ARETE Park Lovosice. The company has signed a contract for 4.3 thousand m2 of storage space for at least three years. The occupancy rate of the premises in Lovosice is therefore now 100 %. At the same time, investments were made to increase the standards of the entire complex. TPL moved to ARETE Park Nové Mesto nad Váhom to use more than 7,000 m2 on the basis of a long-term contract. The company specializes in comprehensive logistics services, including co-packing. The new highly energy-efficient premises have been tailored to TPL’s specific needs in order to meet the high standards of food storage, distribution and logistics, i.e. the focus of TPL’s logistics services. The premises have obtained all the necessary certifications and attestations and meet all the stringent hygienic standards. The premises also include an office building for the management of logistics operations. “We are glad that we have managed to find a suitable solution for TPL and their distribution warehouse that meets the client’s requirements and allows the client to ensure full and efficient operation within Slovakia,” said Igor Šnirc, director of the Slovak branch of the ARETE group. “We appreciate their highly professional approach. We believe that they will be satisfied with the new premises and that ARETE will be the right and reliable partner for their development,” he added. “We consider the contract for the new warehouse premises, which are part of ARETE Park Nové Mesto nad Váhom, to be a strategic investment in Slovakia. ARETE’s assistance with customization as well as the low energy performance of the premises create a fundamental building block for an efficient, modern and environmentally-friendly central logistics solution for our clients. Moreover, the warehouse premises also include high-quality facilities for our employees,” said Ľuboš Korec, CEO of TPL Slovakia, s.r.o. Both complexes where the above-mentioned changes have been made are part of the portfolio of the second ARETE fund established in 2016. Its total accumulated gross yield soared to 115 % in 2019. This fund was closed to new investors in 2018. However, the third fund of the ARETE group was opened to investors at the beginning of 2020. This fund will not only invest in completed industrial real estate in Central and Eastern Europe but will also construct new logistic and production buildings. The target value of its portfolio should be close to CZK 12 billion and the portfolio should include over 600,000 m2 of leasable premises and more than 300,000 m2 of building land for further construction.
The Czech investment and real estate group ARETE is entering the Slovak, German and Austrian markets
The ARETE investment and real estate group has successfully passed the notification process in Slovakia, Germany and Austria. In these countries, it can now actively offer entry in its third ARETE INDUSTRIAL fund, opened this year. Slovak, German and Austrian investors should have a share of up to 50%. This fund invests in completed industrial properties in Central and Eastern Europe, but will also build new logistics and production buildings itself. In Slovakia, the ARETE Group already owns and develops a number of properties in Žilina, Nové Mesto nad Váhom and Košice with a total value of over EUR 50 million. For more information in Czech, please read: https://www.estate.cz/lifestyle/ceska-investicni-a-nemovitostni-skupina-arete-vstupuje-na-slovensky-nemecky-a-rakousky-trh
The ARETE Czech investment and real estate group is entering the Slovak, German, and Austrian markets
The ARETE investment and real estate group has successfully completed the notification process in Slovakia, Germany, and Austria. In these countries, it can now actively offer entry to foreign investors to its third fund, ARETE INDUSTRIAL, opened this year. Slovak, German, and Austrian investors should thus have a share of up to 50% in it. This fund invests in completed industrial real estate in Central and Eastern Europe, but will also build new logistics and manufacturing buildings itself. In Slovakia, the ARETE group already owns and develops a range of real estate in Žilina, Nové Mesto nad Váhom, and Košice with a total value of over EUR 50 million. “We consider the Slovak market, in particular, to be very promising. We already have a range of real estate in our portfolio there, as well as our own team and office. Gaining the possibility to actively offer to investors thus represents a logical step in the development of our ARETE group. Slovakia, Germany, and Austria have great potential, and we have already verified that there is demand for investing in our fund in these countries,” said Lubor Svoboda, ARETE group co-founder . “We want to be an international fund working through international standards and with an international investor portfolio. We plan that Slovakia, Germany, and Austria will provide up to 50% of the investors in our fund,” adds Robert Ides, the other ARETE group co-founder. “Although we are also considering opportunities in other Central European countries, we want to continue to buy real estate in particular in the Czech Republic and Slovakia,” he adds. Obtaining all the necessary permits took about two months in total, and required a number of legislative conditions to be met. Investors from countries outside the Czech Republic were already able to enter ARETE funds on their own initiative, but now ARETE can actively address investors from these countries. This activity on foreign markets then falls under the responsibility of the national financial market regulators. The third ARETE group fund, which was the subject of the notification process, has been open to investors since the start of this year. It will invest in completed industrial real estate in Central and Eastern Europe, but will also build new logistics and manufacturing buildings itself. The target value of its portfolio should be close to CZK 12 billion, and the portfolio should include over 600,000 m2 of leasable areas and more than 300,000 m2 of building land for further construction.
Arete invests up to 80 million euros in industrial real estate in the CEE region
The Arete investment and real estate group has signed a loan agreement with Raiffeisenbank for up to EUR 80 million. The funds will be used to refinance the existing real estate portfolio of the second fund (Arete Invest), and as an investment in the new construction of industrial real estate. The original article in Czech, including the comments of the fund's founders, can be found here: https://skypaper.cz/novinky/arete-investuje-az-80-milionu-eur-do-prumyslovych-nemovitosti-v-regionu-cee/
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.
How has coronavirus affected real estate demand?
Nemovitostní trh pocítil první dopady celosvětové pandemie. Velmi se ale liší podle typu nemovitosti – nejvíce jsou koronavirovou krizí ovlivněny hotely a maloobchodní prostory, naopak nejméně průmyslové a logistické nemovitosti. Jak rychle se podaří vše dostat do stavu ze začátku roku bude záviset nejen na uvolňování restrikcí u nás a v zahraničí, ale i na struktuře vlastnictví příslušných nemovitostí. U logistických objektů je znatelný dopad nárůstu e-commerce, u těch průmyslových je pak ve střednědobém horizontu možný i strategický přesun části výroby z Asie zpět do Evropy. I to vyplývá ze závěrů odborné on-line konference o realitním trhu v současné době, kterou společně v první polovině května uspořádaly investiční a nemovitostní skupina ARETE a poradenská společnost JLL. Celý článek zde: www.estate.cz/lifestyle/jak-koronavirus-ovlivnil-poptavku-po-nemovitostech
