Commercial Real Estate In Crisis
Co-founder of the ARETE group, Robert Ides, was a guest on the prestigious program “Ekonomika+” on the Slovak business channel TA3. Alongside moderator Lenka Buchláková, they delved into key topics in the real estate market and investments. Whether discussing the distinct differences between the 2008 crisis and the current macroeconomic situation, the specifics of today’s real estate market, or other topics, a significant part of the conversation focused on real estate investments. “Today, it’s worth it to invest in a combination of funds with a clear and long-term strategy, whose portfolio reflects market value. Investors should decide primarily based on the strategy of the specific fund and understand it. Each asset and segment of the real estate market behaves differently. It depends on what the investor is interested in,” explained Robert. The entire interview can be found on the TA3 website.
Investment Opportunities In Crisis
Co-founder of the ARETE group, Robert Ides, was a guest on the Ekonomika+ show on the Slovak business channel Televízia TA3. During the interview with moderator Lenka Buchláková, various macroeconomic topics were discussed. However, the main focus was on investment opportunities during the current crisis. While the short term offers attractive risk-free products in the financial markets, this situation is not sustainable in the long run. Additionally, experts predict a gradual decrease in interest rates in the following months, rates that central banks worldwide raised in the fight against inflation. “I am optimistic about the coming year or two. It’s always important to consider the chosen investment horizon. Sometimes, you need to close your eyes and suppress emotions that do not belong in the financial world. It’s supposed to be primarily about numbers and expertise,” explained Robert during the interview. You can find the full interview here.
During times of crisis, investors can rely on real estate funds
Real estate funds are currently an asset that holds its value, and investors can rely on it. In the long term, a bright future awaits. “Real estate, or rather its value, will grow in the long term due to demographics and economic growth. People will need a place to live, companies need a stable headquarters, businesses need to produce. This cocktail creates pressure for the construction of new and new properties and the use of promising locations,” explains Lubor Svoboda, co-founder of the ARETE group, in the Wealth Magazine article. In today’s challenging times, investors are increasingly turning to asset classes that can protect them from negative influences such as increased market volatility or inflation in the long term. “Investments in industrial real estate, due to their nature, can, in some cases, balance traditional, more liquid instruments such as bonds or stocks and serve as a good hedge for the portfolio’s value,” adds Lubor Svoboda. You can find the full text of Lubor Svoboda’s article in Wealth Magazine below: https://wmag.cz/v-dobe-krize-se-muzou-investori-oprit-o-nemovitostni-fondy/
Crises Have Benefited Real Estate
Among the best forms of alternative investments are real estate and real estate funds. The ARETE INDUSTRIAL fund focuses on high-quality industrial real estate as a form of asset with stable returns. Co-founder of the ARETE group explained more in an interview for Hospodárské noviny. You can find the full interview text in the prestigious Slovak newspaper below.
Robert Ides and Miroslav Barnáš as Guests at a Festive Reception in Singapore
It was an honor that ARETE co-founder Robert Ides and CIO of the ARETE group Miroslav Barnáš were invited to the ceremonial reception at the Czech Embassy in Singapore at the Conrad Centennial Hotel yesterday, and that the ARETE group could be its partner. The evening, held in honor of the celebrations of the Czech National Day and fifty years of successful diplomatic relations between the Czech Republic and Singapore, was very pleasant and inspiring. We are glad that we could spend a pleasant evening in Singapore in the company of business partners and diplomats at such a prestigious international event.
Lubor Svoboda, one of the TOP investors in the Czech Republic according to Forbes magazine
We are delighted that Forbes Czech Republic, in its investment-focused edition, recognized Lubor Svoboda, co-founder of the ARETE Group, as one of the top ten investment figures in the Czech Republic for 2023. Forbes handpicked individuals with the ability to enhance capital from among inspirational personalities deserving of attention. In the accompanying article, the magazine elaborated on and praised the consistent delivery of exceptional returns to fund investors within a closed investment cycle. It also highlighted the high-yield investment strategy and the stability of the presently open ARETE INDUSTRIAL fund for qualified investors. This fund manages a dozen industrial and logistics parks in the Czech Republic and Slovakia. We deeply appreciate being named among the top ten investors in the Czech Republic. This recognition reinforces our belief that ARETE is on the right track, and our distinctive strategy involving a closed investment cycle in high-yield industrial and logistics parks is noteworthy.
The transfer of manufacturing and logistics capital is a significant opportunity
Lubor Svoboda, one of the co-founders of the ARETE Group, was featured in the Biznis program on the Slovak TV channel TA3. The discussion revolved around investing in industrial real estate, and among other things, the conversation included:For the Czech Republic and Slovakia, the trend of shifting manufacturing and logistics capital from Asia to Europe presents a significant opportunity. This movement is primarily driven by companies aiming to safeguard their supply chains. Additionally, there’s a shift in production and logistics from Western to Central Europe. The demand for industrial real estate remains high in the Czech Republic and Slovakia, with an extremely low vacancy rate in this property category. At ARETE, we invest in high-yield industrial and logistics real estate within a closed investment cycle, while introducing international standards to industrial properties in the Czech Republic and Slovakia. You can access the full interview here:https://www.ta3.com/relacia/905235/o-investovani-do-nehnutelnosti
ARETE Group has implemented ESG strategy
The ARETE Investment Group considers responsible investing as one of its priorities. For this reason, we have successfully implemented an ESG strategy for the ARETE INDUSTRIAL fund. As a result, we have become one of the first so-called “light green” real estate funds in the Czech Republic. Responsible and sustainable investment not only brings value to individual investors but also to society. We take pride in being one of the pioneers in the Czech capital market to introduce international standards. “It is clear that capital appreciation can be achieved in a socially responsible manner. Therefore, our ARETE INDUSTRIAL investment fund evaluates not only financial but also social, environmental, and ethical factors in its investment decision-making process,” explains ARETE’s ESG Manager, Josef Novotný. The implementation of the ESG strategy is just the beginning. We also aim to further develop and extend our sustainability policy in the future and potentially expand our criteria considered for the fund’s investments. As a participant in the financial market, we are obliged to report under the European SFDR (Sustainable Finance Disclosure Regulation) directive whether and how we achieve or aim to achieve a sustainable policy. The ARETE INDUSTRIAL SICAV a.s. fund has chosen to support a sustainable finance policy as defined in Article 8 of the SFDR directive. Taking a comprehensive view on ESG issues in the fund’s investment activities, we address all three letters of the ESG acronym. The letter “E,” representing Environment, involves assessing the impact of companies’ activities (primarily properties, in our case) on the environment. From ARETE Group’s perspective, this includes the use of renewable resources in the ARETE INDUSTRIAL fund’s real estate portfolio and taking active care for its surroundings. We also focus on meeting social criteria represented by the letter “S” (Social) through collaboration with local stakeholders. For example, we contribute to local development by working with municipalities. The fund’s second pillar in the social area is the proportion of satisfied tenants with long-term lease agreements, as well as the evaluation and selection of tenants with business activities that are sustainable for the local region in the long-term. The letter “G” (Governance) represents criteria for responsible company management. Our priorities in this area primarily involve full compliance with legislative and regulatory requirements, fair practices, and adherence to ethical standards reflected in the ARETE Group’s Code of Ethics. The ARETE Group primarily supports sustainability in these areas:Environment We reduce energy demand and carbon footprint of our assets: At least 80 % of the properties in the ARETE INDUSTRIAL fund portfolio must have BREEAM certification rating of “Very Good.” We will install photovoltaic panels on all roofs within our property portfolio where technically feasible. We commit to achieving zero use of electricity produced from fossil fuels by no later than the end of 2050. We are committed to reducing direct greenhouse gas emissions and aim to achieve net-zero emissions by no later than the end of 2050. We support biodiversity: Within our group, we will continue our long-term collaboration with organizations that support biodiversity protection. Our support primarily involves providing financial contributions to their activities, cooperation, and consultation during new construction projects. We have committed, as a group, to plant one tree for every 500 square meters of a newly built lettable area. We support the protection of conversation areas and endangered wildlife species. Water Resource Protection and Waste Management: We have been working on waste reduction and recycling in the construction of buildings. At least 60% of waste from new construction projects will be designated for recycling. Social We care for the health, safety, and well-being of employees and tenants: We regularly ask our tenants and group employees about their satisfaction with their workplace environment. This includes lighting, air circulation and filtration, adequate breakout areas, and collaboration on monitoring and reducing CO2 emissions and other sustainability factors. We commit to conducting an annual tenant and employee satisfaction survey. We create sufficient breakout areas in all ARETE Group spaces. Within the group, we promote long-term collaboration with tenants. For ARETE INDUSTRIAL, the fund’s goal is to enter into long term lease agreements for a period of five or more years and to maintain occupancy levels within the fund’s portfolio at a minimum of 90 %. We support local communities: We have been supporting local communities and nonprofitcorganizations. In the past year, we contributed one hundred thousand Czech crowns to the Olympie football club in Zdice. We also provided a financial grant of half a million Czech crowns to the town of Zdice for community development. Similarly, we supported the town of Rokycany and local associations with a total amount of one hundred and sixty thousand Czech crowns. Our employees regularly participate in voluntary activities to support the environment, such as tree planting and waste cleanup. We support charitable organizations, including the Czech Ski School of Amputees (CSSA), which assists individuals with lower limb amputations. We, also contributed to ALSA, Nedoklubko, and the Chance for Cancer Children Foundation through participation in charitable beach volleyball tournament. Governance We advocate ethical values in management and governance: We commit to an ethical code and whistleblowing rules. We have established a policy for proper governance, and in the future, we will collaborate with suppliers who also adhere to the ARETE Group’s Code of Ethics. We regularly inform and train company employees on the above policies and rules, including the ESG strategy, its implementation, and the subsequent compliance with individual criteria. We promote gender equality and ethical values: As a group, we have consistently advocated and supported gender equality. We fill job positions primarily based on the assessment of candidates’ experience, skills, and abilities. The values and work habits of candidates, which must align with our corporate culture and ethical code, also play a role in selection. In terms of compensation, the group has implemented a fair and non-discriminatory remuneration policy to close gender pay gap.
Looking to increase the value of your buildings? Bet on renewable resources
Our colleague Tomáš Novotný explains in a text for Wealth Magazín why it is worth betting on renewable energy sources when developing and acquiring industrial real estate. “Installing renewables can dramatically increase the market value of your property. The increased interest of tenants in ESG-compliant energy-efficient buildings has already been discussed, but there are other aspects that increase their value. One of them is, for example, gaining prestigious energy efficiency certifications with good results,” says Tomas in the text. Read the full article below:https://wmag.cz/chcete-zvysit-hodnotu-sve-budovy-vsadte-na-obnovitelne-zdroje/
We Have Completed A New Hall Within The Arete Park Valašské Meziříčí
We have successfully finished the construction of a new phase of the industrial park, ARETE Park Valašské Meziříčí. The new hall will offer 10,000 square meters of new premium space to its tenant, DB Schenker. With the completion of the new hall, the total area of the complex within the ARETE INDUSTRIAL fund’s portfolio has now expanded to 20,000 square meters. Our Valašské Meziříčí park features modern solar panels covering the entire roof and charging stations for personal electric vehicles, aligning with our ESG principles. Valašské Meziříčí is an appealing location due to its convenient access to Olomouc, Ostrava, and the Slovak border. Within the complex, we have plans to introduce the third phase, covering approximately 4,500 square meters. Updates on the construction progress will be shared accordingly.
