Experts say coronavirus has changed demand for certain real estate
The real estate market has felt the first effects of the global pandemic. Yet not all segments are seeing the same changes – hotels and retail premises have been hit hardest, while industrial and logistics buildings have been spared the worst. How quickly everything returns to the normal situation from the beginning of the year will depend on the easing of restrictions domestically and abroad, and also on the ownership structure of the relevant real estate. Logistics buildings are seeing an increase in e-commerce and the owners of industrial real estate may move some production back to Europe from Asia as a new medium-term strategy. This is the conclusion of an expert on-line conference on the current real estate market jointly held in the first half of May by the investment and real estate group ARETE and the real estate consultants JLL. “Investments have obviously slowed due to the coronavirus – when people cannot meet, transactions are suspended. However, we expect this direct impact to be reversed within the next six months at most. Compared to real estate investment horizons, this is actually a very short time,” says Hana Kollmannová, director of capital funds at the JLL real estate consultants. “Keep in mind that certain countries are still seeing a lot of transactions. In Germany, for example, pension funds have purchased real estate at prices higher than those six months ago,” says Robert Ides, co-founder of the ARETE investment and real estate group. The rates of return from real estate have remained at the same level, except for retail buildings and hotels – these two segments have been hit hardest by the pandemic. We are not seeing such drastic impacts in other segments. The general problem on the Czech market is a lack of industrial real estate suitable for investment. “We expect investors to focus on long-term leasing of real estate to solvent tenants. We believe that the industrial real estate segment will return to normal first, including the volume of transactions, while hotels will probably be last,” says Hana Kollmannová from JLL. Compared to 2018, last year we saw a lot of interest from Czech investors in offices and hotels, but less in industrial real estate. This could change significantly. We are now witnessing a trend of leasing industrial real estate to e-commerce companies. The immediate demand for warehousing and distribution centres is strong. “We can expect the manufacturing segment to follow the same path over the long term – companies will be considering a strategic move from Asia to Europe over the medium- and long-term to reduce and stabilize their distribution networks. The current situation has clearly shown that a number of companies have suspended production because of a lack of parts and components produced outside the European Union, not due to the restrictions,” explains Robert Ides from ARETE. Generally speaking, we assume that the value of industrial real estate will rise, in particular in the Czech Republic. The value of industrial real estate in Europe has grown between 12% and 31% in the last five years. Central Europe has seen the least growth – only 15% in the Czech Republic. “Global demand is continuously increasing and will continue to do so in the future because of the growth of the global population. Consumer behaviour cannot be changed at will – goods must be produced and stored somewhere. The coronavirus has just shifted consumption over time,” explains Robert Ides from ARETE. The average rent for industrial real estate in the Czech Republic stabilized at EUR 4.75 per m2 per month at the end of the last year. “Currently, at the end of Q1 2020, the industrial real estate vacancy rate has risen slightly from 4.1% to 5.3%, but this is still far from the levels seen between 2008 and 2011. We think this is a mere fluctuation. If the restrictions are successfully eased, we expect a decrease in the vacancy rate due to the low level of speculative construction,” adds Hana Kollmannová from JLL. The ownership structure of the real estate and owner behaviour will probably be the key factors. There is a big difference between the current crisis and the one from 2008. Back then, German funds represented a large part of real estate. However, Czech capital has gained a larger share over the years. “We can clearly see the influence of market demand in exchange-traded funds. Investors may quickly close their positions and force the funds to sell a part of their portfolio. This could introduce interesting opportunities for profitable transactions to the market. Non-publicly traded funds are not exposed to the effects of financial markets – the only thing that matters is the independent valuation of assets. So far we have not seen any differences in valuation, nothing has changed. The new valuation will become clear after transactions have been affected,” says Robert Ides from ARETE. The change in the banking sector policy has definitely been important. “The ratio of bank financing to fund asset value will play an important role. Less indebtedness is currently a major advantage,” says Robert Ides from Arete.
Earnings results of ARETE real estate fund: Cumulative return of 115%, year-on-year appreciation of 8.9%
Today, the ARETE investment and real estate group released information about the earnings of its second fund in 2019. The total cumulative gross return on the fund, focused on investment into industrial real estate in the Czech Republic and Slovakia, reached 115%, while the gross return for the previous year was 8.9%. The value of assets at the end of 2019 exceeded CZK 2.4 billion and the fund will grow further in 2020 thanks to its halls nearing completion. A detailed inspection of the results is now being finalized by the auditors of Deloitte Audit. This year, ARETE group opened up a third fund to qualified investors. In addition to industrial real estate, this fund also invests in new construction. “The past year was very successful for us. After four years of operation on the Czech and Slovak market, the second fund has achieved considerable success – we managed to increase the assets in our portfolio and further diversify it and maintain extraordinary returns for our investors,” said Lubor Svoboda, one of the co-founders of the ARETE group. “In the coming years, we want to keep bringing exceptional returns to our investors. And since the second fund was closed last year to new investors, we focused on preparing a completely new, third fund. We opened it to investors this year and we have already seen investments worth tens of millions of EUR. A significant advantage of the new fund is the option to purchase under better market conditions, which can significantly increase the value of investments in the coming years.” Robert Ides, the other co-founder of the ARETE group, says, “We have data from an independent evaluation of the earnings from our real estate funds in the Czech Republic as of 31 December 2019. Our ARETE group fund is earning our investors the highest appreciation over the long run.” The ARETE INVEST CEE II sub-fund lords over the overall long-term statistics – it has had the highest average annual return for the whole term of its existence (20.55%). At the same time, it has one of the lowest ratios of bank loans to assets among all the evaluated funds of qualified investors. “At this time, we think our strategy of lower indebtedness, which has been applied in our new fund, is an unequivocal competitive advantage for us,” says Robert Ides. In 2020, a third fund of the ARETE group opened up to investors. This fund is not only going to invest in developed industrial real estate in Central and Eastern Europe but will also build new logistics and manufacturing buildings. The target value of the portfolio should approach CZK 12 billion and it includes over 600,000 m2 of premises for rent and more than 300,000 m2 of lots for further construction. “At this point, our investment evaluation in the Czech Republic and Slovakia includes real estate totaling more than CZK 8 billion. We consider some of them to be very interesting,” adds Lubor Svoboda.
The fund of the ARETE Group is the most profitable real estate fund in the Czech Republic
According to independent evaluation of Hospodářské noviny monitoring data of real estate funds operating in the Czech Republic, the fund of the ARETE Group has long brought the highest appreciation to its investors. The ARETE INVEST CEE II sub-fund reigns supreme in the overall long-term statistics – it has the highest average annual return throughout the fund's existence (20.55 %). At the same time, the sub-fund CEE II has one of the lowest loan-to-asset ratios out of all the monitored funds of qualified investors with loans. It results from the common project of HN and the Institute for Strategic Investments at the University of Economics, Prague. Since 2017, it provides an overview of data on real estate funds available to Czech investors. Newly published data processed financial information valid at the end of 2019. In addition, this year, as part of its growth and thanks to the interest of investors, the ARETE Group has opened a new fund of qualified investors, ARETE INDUSTRIAL SICAV, which focuses on industrial properties in the CEE region.
There will be more investment opportunities in commercial real estate. Demand for warehouses increases, says Lubor Svoboda from Arete
The Prague investment and real estate group Arete is a pioneer of real estate funds in the Czech Republic for so-called qualified investors, ie for people who can afford to invest a million crowns or more. This year it is launching the third specialized fund, focused on valorizing money through commercial real estate – mainly industrial and logistics parks and production facilities. Co-founder of Arete Lubor Svoboda in an interview for HN says that the economic slowdown caused by the coronavirus pandemic can reduce some property prices and create new investment opportunities. “We’re ready to buy,” he says. Growing demand for warehouses and logistics areas from online shops and other businesses also helps Arete funds . The whole article in CZ: https://archiv.ihned.cz/c7-66749690-ol906-e45489ee131143f
Speculation on profits disappears now, stability is important
“We have opened a third investment fund. Thanks to the current situation there are interesting opportunities at affordable prices in a more favourable competitive environment. Prices, which were unnaturally high in some segments, will be corrected. When the situation calms down, there will be a very good time for big investments. We are ready,” says Lubor Svoboda, co-founder of ARETE Group. Read more (Czech language version only) Epidemie koronaviru mění strategie investorů do realit. Místo vysoce ziskových projektů nyní realitní investiční fondy vyhledávají především stabilitu, kterou představují zejména logistické a industriální nemovitosti, jejichž vlastníci jsou nyní výrazně méně ohroženi ekonomickými dopady epidemie. Lubor Svoboda je jedním ze zakladatelů investičních fondů Arete, které se specializují na investice do komerčních nemovitostí a v loňském žebříčku Hospodářských novin srovnávajícím realitní fondy podle výkonnosti obsadily první místo. Podle Svobody teď výnosové reality představují nejstabilnější investiční nástroj na trhu. Proč nemovitosti považujete v současnosti za nejvhodnější investiční nástroj? Goldman Sachs i další velké banky nyní doporučují přechod od krátkodobých likvidních prostředků, což jsou akcie, dluhopisy a podobně, do dlouhodobých, což jsou právě nemovitosti. Vhodné jsou zejména investice do industriálních nemovitostí, protože existuje řada velmi kvalitních firem, které tato krize zásadně nepoškodí. U těchto firem je důležité, že vytváří hotovost, a co v dnešní době vytváří hotovost, je naprosto klíčové. Některé typy nemovitostí v současné době vykazují oproti jiným nástrojům velkou stabilitu. Stávají se investice do komerčních nemovitostí atraktivnější i kvůli stavu akciového trhu? U industriálních nemovitostí je třeba rozlišovat dva sektory − logistiku a výrobu. U určitých odvětví logistiky roste poptávka i v této době. To se týká například řetězců, které zásobují prodejny jídlem a dalším spotřebním zbožím. U nich vidíme obrovskou poptávku po nových plochách, protože kvůli přesunu do e-commerce potřebují nové plochy. Nastane kvůli epidemii moment, kdy se vyskytnou investiční příležitosti, které se neobjevují každý rok, například v segmentu hotelů? Budou na prodej nemovitosti, které by za normálních okolností na prodej nebyly? Určitě ano a týká se to všech sektorů. My jsme teď otevřeli nový investiční fond, v pořadí třetí, a velmi se na to těšíme. Budou se objevovat nové příležitosti za přijatelné ceny a bude méně konkurence, protože část konkurentů bude mít starosti s udržením svých dosavadních portfolií a bude svolnější k prodeji za rozumné ceny. Dojde ke korekci cen, které byly v některých segmentech až nepřirozeně vysoké a nemovitosti už takovou hodnotu neměly. Až se situace uklidní, bude velmi dobrá doba na velké nákupy. Jaký dopad bude mít současná epidemie koronaviru na komerční reality a na investice do nich? Z dlouhodobého hlediska se určitě projeví, nicméně nyní žádný krátkodobý, okamžitý dopad nevidíme. Industriální nemovitosti mají dar, že nepodléhají spotřebitelskému chování jako například maloobchodní centra nebo hotely, ale jsou vázané na velmi dlouhodobé smlouvy s jednotlivými nájemníky, což jsou většinou mezinárodní firmy, které jsou natolik stabilní, aby krátkodobý výpadek překonaly. Stále ale není jasné, jak dlouho současná situace potrvá a jak hluboký ekonomický propad přinese. Mohl by industriální nemovitosti ohrozit případný delší výpadek produkce? Může se to stát. Kdyby tato situace trvala déle, je možné, že jednotliví nájemci začnou omezovat výrobu. To ale neznamená, že by přestali platit nájemné. Pořád mají výrobní program a je součástí dodavatelsko-odběratelského řetězce, takže nějaké aktivity musí udržovat. Pro nákupní centra to neplatí? To je právě ten rozdíl. Nákupní centra nebo například hotely jsou fyzicky uzavřeny či mají omezený provoz. Co se týče dlouhodobého hlediska, vlastníci industriálních nemovitostí mají násobně větší krytí z pohledu bankovních garancí nebo garancí svých nadnárodních mateřských firem. „Dojde ke korekci cen, které byly v některých segmentech až nepřirozeně vysoké“. U rezidenčních nemovitostí v Praze se mluví o dopadech výpadku pronájmů přes Airbnb u zhruba 15 tisíc bytů, jejichž majitelé mohou mít problémy se splácením úvěrů a hypoték. Jak se to projeví na trhu? Všechno záleží na tom, jak dlouho bude tato situace trvat. Jediné, co lze dlouhodobě očekávat, jsou určité cenové korekce. Investoři, kteří dali peníze do těchto nemovitostí, budou opatrnější. Je otázka, co se stane s výnosy, které byly velmi malé a stály v podstatě pouze na spekulativním růstu hodnoty bytu. Nevíme, co se stane a zda tyto hodnoty nezamrznou. Takže čím hlubší bude krize, tím výraznější budou rozdíly mezi jednotlivými segmenty investičních realit? Ano. Segmenty, které jsou vůči krizím méně odolné, jsou například ubytovací služby, hotely, penziony a podobně, ty to odnášejí jako první a propady bývají velké. Z minulé krize víme, že polovina penzionů v Krkonoších byla na prodej. To je konstatování faktu. Krize trvala dlouho a majitelé to nezvládali, tak se otevřely prodeje. Pak jsou maloobchodní a nákupní centra, která jsou teď fyzicky zavřená, ale problém budou mít i poté, co se znovu otevřou, protože řada velkých obchodních center používá princip řetězení smluv. To znamená, že když klesne návštěvnost centra pod určitou úroveň, nájemníci mají právo na slevu na nájmu. To se určitě bude stávat, takže výnosnost center bude klesat. Nákupní centra budou z komerčních nemovitostí asi postižena nejvíc. Domnívám se však, že u bytů to bude pomalejší a velmi rychle se to spraví. Lubor SvobodaAbsolvent Právnické fakulty Masarykovy univerzity. Před založením investiční skupiny Arete v roce 2014 řídil realitní skupinu Naxos a spravoval několik dalších investičních nemovitostních fondů. Poptávka po logistických nemovitostech propojených s on-line prodejem a e-commercí dlouhodobě rostla už před epidemií koronaviru. Krize tedy tento trend zvýraznila? Přesně tak. To se týká i některých industriálních firem, pokud mají dobře rozložený výrobní program zahrnující například zdravotnictví a příbuzné obory. Takové firmy teď jedou naplno. Proto stabilita v industriálních nemovitostech závisí na kvalitě nájemníků. Pokud máte dobré nájemníky, tak generují hotovost, což je v krizi vždycky nejdůležitější. Jaký vývoj čekáte u nemovitostí spjatých s automobilovým průmyslem, který zasáhl nejen koronavirus, ale také nástup elektromobility? Vůbec nepochybuji o tom, že v celém řetězci automobilového průmyslu dojde ke snížení výroby. Je dokonce možné, že část řetězce zavrávorá a spadne úplně, i když velké nadnárodní korporace přežijí. U dodavatelů se nicméně velmi mění struktura a tito přecházejí z lidské práce na robotickou. Do robotizace výrobních procesů se hodně investuje, což je nezvratný proces. Nedělám si iluze, že se v
Arete widens its real estate portfolio in Uherské Hradiště and Košice, with investments reaching almost EUR 20 million
The investment and real estate group, Arete, incorporating real estate investment funds, announced today continuing enlargement of its portfolio. After acquiring land in an industrial zone lying just outside Košice, Slovakia, Arete has begun construction involving investment of EUR 13 million of a specialised production hall covering an area of 12,000 m2 for a leading European steel chimney manufacturer. Arete is also significantly enlarging the existing Forschner production hall in Uherské Hradiště, investment into this project being in the region of EUR 7 million. “After a quantity of acquisitions of functioning, profitable industrial properties that we have made over the past few years, we decided to take on our own development projects. Our pioneer project was construction of a huge warehouse on our own premises in Nové Mesto nad Vahom, which was completed last summer. Together with our current construction project, this demonstrates that we are capable of widening our portfolio, which allows us to significantly increase value for our investors,” explained Lubor Svoboda, co-founder of the Arete investment and real estate group. New Premises in Košice In November, the Arete group completed acquisition of land in the Veľká Ida industrial zone which lies within easy access to Košice in Slovakia. This zone, which even offers the opportunity of receiving government support, has for some time been the focus of interest of foreign manufacturing companies. Arete group is now building a specialised production hall for Steelcon Slovakia, part of the Danish group, Dominion Steelcon, which specialises in the manufacture of steel chimneys. This highly specialised project involving two halls with investments totalling EUR 13 million is proof of just how attractive the Slovak investment market is. Completion is planned for the second half of this year. Production hall extension in Uherské Hradiště Intensive work has been underway since last year on an extension to the existing Forschner production hall and logistics park in Uherské Hradiště. The new hall extension should be finished in April. An important aspect of the construction work is the creation of modern, clean production spaces suitable for manufacturing components for electric cars while meeting the highest international standards, with a constant temperature and humidity. Of course, rainwater infiltration and heat recuperation considerations are also addressed in the construction works. Modern office space and hygiene facilities for staff are integral to the new hall. Class A industrial premises in Uherské Hradiště with excellent road access to Slovakia and South Moravia has been in the Arete portfolio for four years now and it is 100% leased out to Forschner, which has grown from a German family firm into a multi-national corporation. Its focus lies on electric vehicles, production of cable and electromechanical systems and other components intended mainly for the automotive industry. Its clients include Audi, Continental, Daimler, Volkswagen, Philips and Bosch. About the Arete Group: The investment and real estate group Arete was established in 2014 and focuses on investment in real estate. The first Arete Invest sub-fund, which focused on residential properties, completed its investment cycle in 2017, with a gross total appreciation of 120%. The second Arete Invest sub-fund, investing in industrial properties, has been operating since 2016, with a gross total appreciation of more than 90%. In 2020 a third fund has been opened for investors: Arete Industrial. The goal of this new fund is not simply investment in ready-built industrial properties, but also to construct them. The funds are intended exclusively for qualified investors, both natural and legal persons, whose activities are subject to inspection and supervision by the Czech National Bank. For more information, go to www.arete.eu. Find out more by phoning: Ondřej Micka, mobile: +420 724 352 552 Martina Chromečková, mobile: +420 774 135 551 Tel: + 420 251 091 211 E-mail: arete-pr@emcgroup.cz
Arete investment group opening its third real estate fund to follow on from the success of the two preceding funds
The Arete investment and real estate group today announced the opening of now its third qualified investor fund, based in the Czech Republic and operating under the supervision of the Czech National Bank. This third fund is to follow on from the successful history of the preceding funds, with the first fund having been closed three years ago and investors paid off with a total gross appreciation of 120%, while the second fund has fulfilled its strategy with its current gross appreciation of over 90%. The new Arete fund will both invest into completed industrial real estate in Central and Eastern Europe and also itself construct new logistics and manufacturing buildings. Its portfolio target value should approach EUR 500 million during the anticipated six-year investment cycle. “After six years of operation of the Arete group, we can be proud of the successes we have achieved. We significantly appreciated the funds invested in the first fund within a very short time, and succeeded in formally closing it, something quite exceptional in the Czech market. We subsequently focused all our energy on the second fund, focused on industrial real estate, and this is continuously achieving above-standard results. We believe that our third fund will follow on from these successes,“ stated Lubor Svoboda, one of the two Arete group co-founders. “In spite of the slowing of industrial growth in the Czech Republic and the short-term volatility of the stock markets, the overall economic situation in Central Europe is conducive to the further development of logistics and manufacturing. Hence the investment strategy underpinning our new fund once again focuses precisely in this direction. Through combining an aggressive investment strategy into already existing revenue-generating industrial real estate with the construction of new sites, we want to follow on from our historical performance in this next fund. More and more investors consider investment in funds focusing purely on industrial real estate to be a far more profitable alternative to unsecured corporate bonds, and so interest in this type of investment is significantly growing. The attractiveness of this type of asset in the Czech Republic and Slovak Republic is also demonstrated by the severalfold greater interest from global players and investment groups,” added Robert Ides, the second Arete group co-founder. The third Arete group fund is to focus on industrial real estate with stable yields in combination with construction, specifically of class-A logistics and manufacturing real estate in Central and Eastern Europe. The anticipated investment horizon is six years. The portfolio target value should approach 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. The new fund was formally established last year, but new investor entry is only commencing now. The investment cycle of the first Arete fund culminated at the end of 2016 with the sale of the whole residential portfolio, made up of several hundred apartments, to a foreign financial investor. The financial and legal closing process for this fund was completed in early 2017, and it was one of the first ever successfully closed funds in the Czech Republic. The fund achieved gross appreciation of 120% over the two years of active management. The second Arete fund was established in 2016, and gradually built up a homogenous portfolio of industrial real estate. Its objective is to continuously appreciate the invested funds of its investors at over 11% per year, while the actual rate of return far exceeds this announced value. The most recent, unaudited results for 2019 show total gross appreciation of over 90%. The entry of investors into this fund was closed in 2018.
New Arete real estate group fund to purchase and construct warehousing space worth billions
The domestic Arete group is launching its third real estate fund. It is planning the purchase of warehousing space and industrial halls in both the Czech Republic and throughout Central and Eastern Europe. It will also be launching its own developer projects for the first time. The portfolio target value should approach CZK 12 billion. “In spite of the slowing of industrial growth in the Czech Republic and the short-term volatility of the stock markets, the overall economic situation in Central Europe is conducive to the further development of logistics and manufacturing. Hence the investment strategy underpinning our new fund once again focuses precisely in this direction,” stated Arete co-founder Robert Ides.The new fund will be targeted at private and institutional investors. The minimum investment is to be EUR 200 000 (CZK 5 000 000). The first investors have already placed tens of millions of euros into the fund. Arete is also anticipating the use of bank loans of approximately the same amount as the total volume of own funds.Specialists in commercial real estate say that the new fund’s strategy and focus make sense. “The market has sufficient reserves of both capital and demand from both foreign and domestic investors for this type of real estate. If we leave aside the acquisition of any already existing larger portfolio, the indicated volume can only be invested in several countries at once, and so the focus on the Central and Eastern Europe region is a logical one,” commented Alexander Rafajlovič of the investment team at the consultants Cushman & Wakefield.The new fund plans with a six-year investment cycle. Its ambition is to accumulate 600 000 square metres of halls for leasing and 300 000 square metres of land for further construction. Arete’s Ides anticipates the completion of the initial acquisitions this summer.“Considering last year’s construction of almost four million square metres in the Central and Eastern Europe region, the ambition of 600 000 square metres is definitely possible,” said Ferdinand Hlobil, responsible for international industrial transactions at Cushman & Wakefield.The investment cycle for the second fund is currently coming to an end in the Arete group. It has appreciated investors’ capital by 90 percent since its opening in 2016. This second fund manages 125 000 metres of leasable space in the Czech Republic and Slovak Republic, including the international logistics headquarters of the C&A clothing chain.According to information on the E15.cz server, Arete is currently finalising negotiations for the sale of this portfolio to the American investment giant CBRE Global Investors. Neither Arete nor CBRE GI have commented on this information.The industrial real estate market is very active. The German Garbe Industrial Real Estate has announced its entry into the Central and Eastern Europe market. This company has constructed halls for Amazon in Germany, for example. Star Capital is one of the new Czech players to begin constructing industrial halls.More at https://www.e15.cz/byznys/reality-a-stavebnictvi/novy-fond-realitni-skupiny-arete-bude-nakupovat-a-stavet-sklady-za-miliardy-1367431
Results HN – 3Q2019
The fund of the Arete Group is the most profitable real estate fund in the Czech Republic. According to independent statistics of Hospodářské noviny monitoring data of real estate funds operating in the Czech Republic, the fund of the Arete Group has long brought the highest appreciation to its investors. The sub-fund CEE II of Arete Invest reigns supreme in the overall long-term statistics – it has both the highest average annual return throughout the fund’s existence (20.43 %) and the highest average annual return over the last three years (25 %). At the same time, the sub-fund CEE II has one of the lowest loan-to-asset ratios out of all the monitored funds of qualified investors with loans. This is based on data from the web portal Investujme – a joint project of Hospodářské noviny and the Institute for Strategic Investments at the University of Economics in Prague. Since 2017, it provides an overview of data on all types of real estate funds available to Czech investors. The newly released data processed financial information valid at the end of the third quarter of 2019. An overview of all independent evaluation results is available on the website: www.ihned.cz/investujme.
Arete Group starts construction of a new manufacturing hall for leading european manufacturer of steel chimneys near Košice
At the beginning of November, Arete Epsilon SK, member of real-estate investment group Arete, completed acquisition of land plots in an industrial park in Veľká Ida at the border of Košice city, a regional capital of East Slovakia region. This industrial park allowing investors to draw governmental subsidies has been very appealing to international manufacturing companies long term. The Arete group has started construction of the new production hall for the Danish company Steelcon Slovakia shortly after the acquisition. It should start production of steel industrial chimneys mainly for export during the second half of 2020. This highly customized production hall worth almost 13 million EUR confirms attractiveness of Slovak investment market. After completion of the hall, Arete group will expand its presence on the Slovak market and will grow its portfolio of production and logistic properties to 125,600 sqm in total. „Steelcon Slovakia is a very reputable and stable partner to us, who understands Slovak market benefits and considers its decision to stay in the region for at least next 15 years as very strategic,“ says Tomáš Novotný responsible for strategic development and asset management within Arete group.
