Extension of ARETE Park for Zásilkovna was completed and handed over to the tenant for use
A few days ago, the Zásilkovna company, which has been using the premises of the main hall of the Pilsen industrial park since last year, also took over the use of an extension of approximately 2,000 m2. The total lettable area of the Pilsen park thus increased by 12.4% to 17,785 m2. The logistics sector now accounts for 33% of the park, while manufacturing accounts for 67%. The extension of the complex also increased the total lettable area of the ARETE INDUSTRIAL fund to 172,264 m2. The share of logistics by floor area in the total portfolio of the fund in the Czech Republic and Slovakia is now 57%. The overall portfolio exposure between countries is as follows: 65% Czech Republic, 35% Slovakia (lettable area standing + under construction). Zásilkovna, a leading Czech logistics and technology company, was founded in 2010 to provide comprehensive logistics services for online stores. The company’s dense network of drop-off points in the Czech Republic and abroad is essential, with dozens more opening every month. For its operations, it needs premium logistics and storage facilities, such as those in ARETE Park Plzeň Borská pole. The Borská pole location has historically been a hub for manufacturing and logistics in the region and has long been one of the premium locations nationwide. Nowadays, it goes even further and provides facilities for high-tech research and development centers and other highly qualified activities. The industrial park project in Pilsen is also exceptional in that way it is the first complete modernization of a brownfield site.
Expansion of ARETE Park Dunajská Streda received a building permit
The expansion of ARETE Park Dunajská Streda has received a building permit. It will offer an additional 13,000 m2 of modern space for storage, logistics or light manufacturing. The new tenant will get a building meeting the highest technical standards, offices and customized social spaces. Units from 3,000 m2 will be available for rent, and rental spaces will be available within 8 months. The existing nearly 30,000 sqm of the site is already occupied by BSK Transports from the Italian group Bracchi, which has been operating in Slovakia for a long time. This building also meets the high technical standard of class A and has the most modern technical parameters. ARETE Park Dunajská Streda is located within driving distance of three capitals: Bratislava, Budapest and Vienna. The journey to Bratislava takes 20 minutes on the R7 highway.
Jiří Król joins the Supervisory Board of the ARETE Industrial Sicav Fund
Jiří Król, an expert in alternative investments and manager with more than 20 years of experience in international leadership positions in investment institutions, will join the Supervisory Board of its investment fund, ARETE INDUSTRIAL, as of 1st February 2024. Jiří Król, currently Deputy CEO and Global Head of Government Affairs of the London-based ALTERNATIVE INVESTMENT MANAGEMENT ASSOCIATION (AIMA), brings a wealth of experience in strategic investment management, policy making and financial services regulation to ARETE INDUSTRIAL SICAV Supervisory Board. His accomplishments in international negotiations and leadership of strategic asset management initiatives will be a valuable asset in the development and implementation of ARETE INDUSTRIAL’s fund strategies. Lubor Svoboda, co-founder of ARETE Group, said: “I am delighted to welcome Mr. Jiří Król to the Supervisory Board of the Fund. His expertise and broad insight into global investments will provide us with a valuable impulse for the further development of our fund specializing in industrial real estate. We are confident that his presence will be a key factor in achieving our strategic objectives.” ARETE INDUSTRIAL is the third investment product of the ARETE Group. It focuses on investments in completed industrial properties and the construction of new industrial and logistics parks. With the addition of Jiří Król to the Supervisory Board, the fund has secured an additional layer of professional oversight and leadership.
Is real estate still a good way to protect your investments from inflation?
In a recent article for Wealth Magazine, ARETE co-founder Lubor Svoboda discusses strategies for protecting investments from inflationary fluctuations. He estimates how current economic changes will affect traditional portfolios and highlights the benefits of diversification, with an emphasis on real estate. Svoboda explains why real estate can be a key element in times of inflation and how the ARETE INDUSTRIAL fund focuses on industrial real estate in Central Europe, offering stable returns. “In the current macroeconomic environment, it is crucial to adapt investment strategies to new challenges. Diversification, especially real estate investments, can provide stability in periods of inflation and turbulent markets.” Lubor Svoboda also points to changes in monetary policy and recommends monitoring fiscal trends. He mentions that in light of recent events, fiscal authorities play a key role in investment opportunities. Investors should focus on resilient assets, and industrial real estate in particular may offer attractive opportunities in this volatile environment. Read the full article in Czech language can be found below. Jsou nemovitosti stále dobrým způsobem, jak ochránit své investice před inflací? – Wealth Magazín (wmag.cz)
Cooling inflation promises stabilizing markets and interesting purchases
In his text for Wealth Magazine – Premium, ARETE co-founder Lubor Svoboda discusses the current macroeconomic situation affecting investors around the world. Due to the tense situation on the markets and in the world, more and more investors are turning their attention towards alternative investments. These are commonly up to 30% of an investment portfolio. Alternative investments include real estate and real estate funds. “If investors have spare cash for passive investment, they may find it interesting to enter a real estate fund with a medium-term investment horizon. However, currently it will be necessary to differentiate between investment funds. In line with the above, I would prefer funds with a low level of leverage (LTV) and a strategy that focuses on portfolio growth, i.e. new acquisitions. Not on the rehabilitation of existing portfolios. In the European market, the industrial and retail park segments are currently the least structurally challenged,” Lubor explains in the text. Lubor Svoboda’s full text for Wealth Magazine in Czech language can be found below. https://wmag.cz/chladnouci-inflace-slibuje-stabilizaci-trhu-a-zajimave-nakupy/
We Have Completed The Construction Of Arete Park Rokycany Ii
A few days ago, the German logistics company Thomas Duvenbeck Immobilien, which is part of the British investment group Waterland, took over the logistics complex ARETE Park Rokycany II for use. The complex increases the total standing leasable area of the ARETE INDUSTRIAL fund by 21% to a total of 170,354 sqm. This step increases the share of logistics by area to 54% of the standing parks in the total portfolio. The overall exposure of the portfolio in the Czech Republic has increased by 16% to a total of 62%. The exceptionally long lease improves the overall profile of the fund and the new site itself will also significantly increase the WAULT of the portfolio to approximately 9 years as of December this year. The completed state-of-the-art logistics facility complies with the latest technological and environmental standards, including BREEAM certification, which is in the process of being ratified. The tenant will use the hall for logistics purposes and it will become the company’s largest consolidation centre in Europe. ARETE Park Rokycany II is the most modern complex in the portfolio of the company. Duvenbeck, which is an A-rated international tenant, will be the sole tenant of the site. At the same time, Duvenbeck is one of Waterland Group’s strategic investments.
Investing in commercial real estate
Robert Ides, co-founder of the real estate and investment group ARETE, appeared as a guest on the show Investujeme on the Slovak business channel TA3. Host Lenka Buchláková engaged with Robert in a relaxed manner, discussing current topics ranging from Slovakia’s credit rating change to predicting the real estate market’s development for the upcoming year. Among the questions raised was whether it’s better to sell stocks now or, conversely, to buy more. “In today’s environment, it’s crucial to know the underlying assets, the level of debt, and to learn how to interpret annual reports,” said Robert in the interview. The entire interview with Robert can be found here.
We Have Handed Over New Manufacturing And Storage Premises In Arete Park Plzeň To The Tenant
A few days ago, the French company Oxymetal, which specialises in metal processing and the production of metal components for various industries, including the automotive, energy and construction sectors, became a long-term tenant of the ARETE Park Plzeň Borská Pole complex when it took over a new industrial hall. The completion of this project increases the total leasable area of the ARETE INDUSTRIAL fund by 4% to a total of 140,487 sqm. At the same time, the share of manufacturing increases to 14% of the total portfolio and the exposure of the funds’ assets in the Czech Republic increases to 49%. As of December this year, the new facility has also increased the WAULT of the portfolio which is now over 7 years. The industrial park project in Plzeň is also exceptional in that way it is the first complete modernisation of a brownfield site. The former meat processing plant was completely revitalized and turned into a modern complex providing not only manufacturing, but also storage and retail space for several creditworthy tenants.
ARETE is the Best Real Estate Property Fund Manager in the Czech Republic.
Our ARETE team has received an exceptional award. Amid strong competition, we triumphed in the category of Best Real Estate Property Fund Manager of the Year. The jury positively evaluated the high standard of our long-term conceptual work in managing our funds, our responsible approach in preparing and implementing investment strategies, the precise timing of acquisitions and developments, and, not least, the consistent utilization of market opportunities. Our emphasis on sustainable, not just environmentally responsible, business practices was also recognized, as our funds are among the “light green funds” according to the European SFDR directive. Also crucial was the appropriate approach chosen in managing our third fund, ARETE INDUSTRIAL, where a strategy based on low leverage, broad portfolio diversification, and the choice of industrial parks as underlying assets has proven to be consistently correct and successful. The high professional standard of our development team is evidenced by another award received within the 23rd edition of the CIJ Awards Czech Republic. ARETE Park Valašské Meziříčí impressed the jury so much that it won the award for Best Warehouse Development <16k of the Year. The success was crucially tied to a well-chosen location and a high-quality tenant of the park, DB Schenker. A significant part also included the high-quality construction of the entire park, the use of modern and sustainable technologies, and obtaining the BREEAM certification. The high expertise of the team, preference for closed investment cycles of our funds, active portfolio management approach, in-house development activities, and other aspects are just a few fragments from the mosaic that constitutes the ARETE group and its funds. We thank our investors, partners, suppliers, and advisors for their support. Achievements are our positive commitment to the future.
On Investing In Uncertain Times
Co-founder of the ARETE group, Robert Ides, was a guest on the Štúdio TA3 program. Together with moderator Andrej Horváth on the Slovak business channel Televízia TA3, they discussed current economic topics in investments and real estate. During the interview, they discussed topics such as: The current situation in the commercial real estate market How the composition of the investment portfolio has changed in recent years What to watch out for when selecting real estate investments “Comparing today’s portfolio to three years ago, it looks significantly different. We’re observing a greater exposure to stock markets, and bonds, and a gradual increase in the overall share of real estate. Even in today’s complex times, a well-structured portfolio can yield returns between three to five percent,” explained Robert in the interview. The entire interview can be found here.
