You can’t fool the market. Real estate will get cheaper if money remains expensive
Co-founder of ARETE, Robert Ides, describes the macroeconomic influences affecting the real estate market in his article for Wealth Magazín. Currently, the real estate market is impacted by factors such as the high cost of money and vastly different expectations of buyers and sellers. However, fluctuations in real estate prices are a natural market phenomenon. Once the high cost of money decreases, the real estate market is likely to pick up momentum, and property values will increase. “Market cyclicality is nothing to fear. It’s natural and helps to balance the market in response to changes in money prices,” explains Robert in the article. Read the entire article below:https://wmag.cz/trh-neosalite-nemovitosti-zlevni-pokud-penize-zustanou-drahe/
Philanthropy and socially responsible behaviour are important to us at ARETE
Philanthropy and socially responsible behavior are important to us at ARETE. We have a long-standing positive experience with investments from international foundations into our funds. We are pleased that the returns we have achieved in the past have contributed not only to our success but also to securing necessary resources for philanthropic purposes. However, the nature of philantropy itself has been changing in recent years. We are gradually shifting from spontaneous collections and the bequeathing of entire estates to philanthropic entrepreneurship. Learn more in an article by our colleague, Josef Vojta, on philanthropic capitalism for Wealth Magazine. Full article: https://www.linkedin.com/feed/update/urn:li:activity:7080089092989841408
The approach of ARETE to ESG
At ARETE, sustainability, social policy, and responsible corporate governance. This is why we proudly embrace a comprehensive strategy of ESG commitments. The strategy is based not only on environmental responsibility and the sustainability of our business but also on ethical principles and a commitment to the sustainable development and prosperity of local communities. We are driven by ethical principles and committed to openness and fairness in our relationships with our tenants, investors, business partners as well as our employees. We have developed our complex ESG strategy in collaboration with the renowned consulting agency Ernst & Young, which is among the absolute leaders in the industry. Pillars of our ESG approach E (Environmental) Respect for the environment is essential to us. We aim to promote a sustainable and environmentally friendly approach to the development and operation of our buildings. We continuously seek further opportunities to minimize the environmental impact of our business. Our environmental goals: We will secure BREEAM certification for all newly constructed buildings Photovoltaic panels will be installed on all technically suitable roofs By the end of 2050, we will end the use of fossil fuels to generate electricity in all our buildings We will plant one tree for every 500 square meters of newly built rental area S (Social) Our constant commitment is to develop sustainable and prosperous local communities. We always prioritize health and safety first. Likewise, the satisfaction of our suppliers, tenants, business partners, and our own employees is our priority. Our social Goals: At least 90% of our tenants will have long-term leases of five years or more We will support local non-profit organizations and local charitable projects Each year we will conduct at least two employee volunteer activities G (Governance) All business activities of ARETE are based on ethical standards and moral values. It is essential for us to apply these values in our relations with suppliers, tenants, employees, and business partners. Our governance goals: All our employees will complete training on the company’s Ethics Code of Conduct We will commit at least 90% of our key suppliers to the Supplier Code of Conduct In 2022, we prepared all processes and investment strategies so that we could responsibly subscribe to the principles of ESG (Environmental, Social, and Governance) and sustainability. This year we are continuing our activities and plan to complete the full implementation of ESG.
The real estate market is increasingly influenced by ESG principles. Sustainability is also crucial for us at ARETE.
Likewise, tenants and investors in the real estate market perceive the situation similarly, often making decisions based on adherence to ESG values. The pursuit of sustainability presents a significant opportunity not only for the industrial property segment but for the entire real estate market. “We are building our portfolio of manufacturing and logistics properties with a focus on its energy efficiency, ecological friendliness, and overall attractiveness to tenants who value ESG principles,” explains our colleague Tomáš Novotný in the article for Wealth Magazine. Full article: https://wmag.cz/esg-tu-s-nami-zustane-a-bude-ovlivnovat-trh-s-nemovitostmi/
We have completed a new hall within ARETE Park Plzeň, Borská pole
The industrial park project in Plzeň is exceptional because it is the first overall revitalization of a brownfield by our development team. A complete revitalization of the former meat processing plant has taken place, which has been transformed into a modern complex providing not only a warehouse but also production and sales areas for GIENGER. GIENGER, which operates throughout Europe, focuses on wholesale activities in the field of heating, sanitation, installations, and utilities and has a tradition of more than a quarter of a century in the Czech market. The complex, which includes the above-mentioned hall with a total area of more than 3,600 m2, is gradually being completed and fully occupied by multinational companies with excellent ratings that have signed long-term lease agreements. In line with the ARETE Group’s ESG principles, we are finalizing the BREEAM certification, thus respecting all modern standards associated with the pursuit of sustainable and socially responsible construction.
Is it worth entrusting your property to professionals?
The economic slowdown, increased interest rates, and availability of financing have resulted in the growing popularity of sale and leaseback transactions, not only in industrial real estate. A sale and leaseback of a property can free up a company’s hands and bring in the much-needed capital needed to modernize and implement advanced technologies. “A sale and leaseback free up real estate tied-up capital for the company. Primarily, this can improve the company’s financial ratios and balance sheet structure, reduce the debt burden and improve cash flow and liquidity. In times of higher interest rates, it also reduces the need to take on new loans and accelerates the repayment of old liabilities,” explains our colleague and ARETE CIO Miroslav Barnas in a text for Wealth Magazín. Full article here: https://wmag.cz/vyplati-se-sverit-vasi-nemovitost-profesionalum/
Industrial real estate segment targeted by ARETE Industrial
Robert Ides, co-founder of ARETE, was a guest on Slovak Televízia TA3’s Biznis programme. The topic was the industrial real estate segment, which is the focus of our fund ARETE INDUSTRIAL. Among other things, Robert explained: ✅️ Why ARETE decided to invest in this part of the real estate market ✅️ Whether real estate can withstand the crises we are going through and retain its value ✅️ And why the Central European region is one of the best places to invest in logistics and manufacturing real estate You can watch the full interview here: https://www.ta3.com/relacia/28571/priemyselne-reality-maju-perspektivu
26th April 2023 ARETE Group’s third fund has completed the acquisition of a modern industrial hall near Milovice in the Central Bohemia Region
ARETE Group’s third fund has completed the acquisition of a modern industrial hall near Milovice in the Central Bohemia Region. A multimillion-euro transaction will help to further develop the portfolio of ARETE INDUSTIRAL fund. The long-term tenant will be AAS Automotive s.r.o., which is part of the strong international company Decotek Automotive, a company specializing in the production of longitudinal and transverse car roof racks. The company’s customers include the leading local and German OEM customers, among others. The firm is owned by Irish company Decotek Group, which sees it as a key player in the automotive manufacturing sector in the Central European market. The purchased industrial hall has an area of more than eight thousand square meters. The mentioned complex of production, storage, and office space boasts the latest technical specifications. At the same time, the complex has room for further expansion over an area of several thousand square meters. „We are delighted that we have been able to complete the transaction. I would like to highlight the strategic location of the hall. It is close to the D10 and D11 highways and close to the Prague Ring Road. Milovice is within driving distance of Prague, Mladá Boleslav, Liberec, and Dresden, which makes it an ideal location for the automotive industry. In addition, the demand for industrial real estate in this area is significantly higher than the supply. A reputable premium tenant also played a significant role in the acquisition. We signed a long-term lease with AAS Automotive, which is guaranteed by Decotek. Decotek has ambitious plans within the region and its customers include the most prestigious automobile brands in the world. We look forward to working together,” said Robert Ides, co-founder of ARETE Group, on the transaction. „For Decotek Automotive, this is a strategic project that will be one of the most important in the Central European region. As an Irish company originally, we have the ambition to expand into new markets in the CEE region. Specialising in automotive exterior trim, DECOTEK’s acquisition of AAS will broaden our product and service offering to our Customers in Eastern Europe including localized full-service support. Consistent with our market leading sustainability goals, this localised manufacturing will minimise logistics and CO2 impact for our customers in this region. We are pleased that a fund from the ARETE group will be the owner of the industrial park in Milovice. We would like to appreciate the high expertise and professionalism of the entire team during the negotiations and look forward to future cooperation,” said Tom Hyland, Managing Director from Decotek Automotive.
Warehouses are about to (r)evolve – robotics and automation will bring higher value-added jobs and free up human capital
The industrial real estate segment is the driving force in the field of robotics, automatization, and the use of AI. These technological trends of the future can significantly increase the efficiency and productivity of work, as well as the speed and accuracy of processes. “At the same time, investments in robotics and automation create jobs with higher added value, which are constantly in short supply even in developed economies such as the Czech Republic and Slovakia. Thanks to modern technologies, areas with an industrial tradition can solve the problems of young people leaving the regions. However, it is essential to timely capture these technological trends in the areas of e-commerce, manufacturing, and logistics and invest the necessary resources in them,” explains our colleague and ARETE CIO Miroslav Barnas in the text for Wealth Magazín. Nowadays, it is no longer universally true that investments in advanced technologies are too expensive, and therefore a company cannot afford them. Instead, we can talk about a situation where, in the case of a well-prepared and well-implemented project, its return is not in the order of high units of years, but rather in the optimal case of several dozen months. More in the text https://lnkd.in/eZhw6yHS.
Time has proven the stability of investments in industrial real estate
The challenging year of 2022, when bonds or stocks suffered record losses, was, on the contrary, a very positive period for industrial real estate. We are pleased that ARETE decided to invest in this real estate market segment several years ago. In an interview with TREND.sk, our colleague Igor Šnirc explains what led us to invest in this segment, what the current market situation is, and also what investors can expect in the near future. “We believed that there was great potential in this real estate market segment and that demand in the Central European region would need to be satisfied in the coming years. Our assumptions are being fulfilled so far. The rise of e-commerce as the world’s largest market, the inclusion of logistics properties in critical state infrastructure, record construction, and the relative resilience of this segment during times of worsening economic and geopolitical conditions have shown us that we have taken the right path,” describes Igor. https://lnkd.in/ehi7Jv5z
