Arete Invest fund extended a lease contract with the tenant in Vyškov
Arete Invest signed a new ten-year lease agreement with a supplier of plastic components, Rompa in March. It has an entirely leased industrial complex from Arete Invest right on the D1 motorway in Vyškov. At the same time, work began to expand the building by another 500 m², which would further increase the capacity of the company, especially with regard to the development center and offices. “The inclusion of this property into our portfolio took us over two and a half years, but all efforts have already produced first results. We managed to clean up the historical disputes linked to the site, which undoubtedly significantly increased its value. http://cijusa.com/cz/encompassme-usa/30438/story/fond-arete-invest-prodlouzil-smlouvu-s-najemcem-ve-vyskove http://www.finparada.cz/zprava_banka.aspx?ID=15477
The Arete Invest Fund to expand the production compound in Vyškov, extending the contract with the lessee by 10 years
Arete Invest, a fast-growing Czech fund focused on investment in real estate, concluded a new ten-year lease contract in March with plastic components supplier Rompa. This company has fully leased the industrial compound right next to the D1 highway in Vyškov from Arete Invest. Furthermore, work has been launched to expand the building by another 500 m2, which will allow the company to increase capacity, mainly with a development centre and offices. “It took us two and a half years to include this property into our portfolio, but all the effort is reaping the first results. We have managed to resolve the historical disputes associated with the compound, which undoubtedly increased its value. And now we have extended the contract with the tenant by a full ten years and launched work on further expansion of the building,” said Lubor Svoboda, Co-founder and Chairman of the Administrative Board of the Arete Invest Fund. “We are delighted that almost immediately after taking over management of the industrial compound, we can support the further development of our tenant while increasing the overall value of the property,” added Tomáš Novotný, Member of the Investment Committee of the Arete Invest CEE II Sub-fund responsible for asset management. Expansion of the compound includes the addition of two office areas for a development centre, social amenities and overall revitalisation of the building. The compound will thus provide Rompa with facilities to increase production capacity, which will cover among other things the delivery of compacts for BRITAX car seats or components for Philips hygienic products. Arete Invest included the class A industrial compound in Vyškov, right next to the D1 highway, into its portfolio this January; the financial volume of the transaction was about EUR 10 mn. The property currently has a leasable area of 10,400 m2 with the option of expanding by another 3,700 m2, part of which is already under construction. The compound is 100% leased by the multinational corporation Rompa, which operates on plastics processing for the automotive and other industries, as well as household products and packaging materials. Its clients include Siemens, Braun, Philips and Bosch. The Arete Invest Fund aims to actively manage all the properties in its portfolio and appreciate them through the expansion of tenants, extension of lease contracts, intensification of relations with tenants or the use of as yet vacant land for future construction. The compound is Vyškov is part of the portfolio of the current open-end sub-fund Arete Invest CEE II. The expected value of managed assets in this sub-fund in the course of the forecasted five-year investment cycle is EUR 200 mn. The sub-fund aims for the continuous appreciation of investors’ resources at up to 11% per annum, whereas up to 6% of this makes up the cash distributions paid on a quarterly basis. The current return far exceeds these forecasted values.
The Czech Fund Arete Invest bought an industrial complex in Vyškov
… „This transaction took us over two and a half years, but any effort will undoubtedly pay off. Clearing historical disputes and an upcoming construction should significantly increase the value of the whole area that is newly in our portfolio. We assume that after the transaction has been completed the value of the building has increased by 20%,” said Lubor Svoboda, co-founder and Chairman of the Board of Directors of Arete Invest. https://www.buildingnews.cz/investicni-trh/cesky-fond-arete-invest-koupil-prumyslovy-areal-ve-vyskove.html
The Czech Fund Arete Invest has extended to include an industrial estate for EUR 10 million in its portfolio
Arete Invest, a Czech fast growing fund focused on investments in the field of real estate, completed its first acquisition of this year. It is a purchase of an industrial estate right by the D1 highway in Vyškov, which is fully leased to Rompa, a supplier of plastic components. The financial volume of the transaction was about EUR 10 million. “Completion of this transaction took us more than two and a half years but all the effort will surely be rewarding to us as well as to our investors. Clearing old disputes and further planned development should considerably increase the value of the entire estate which newly belongs to our portfolio. We presume that the appreciation has already reached 20 %, now that the transaction has been completed says Lubor Svoboda, Co-founder and Chairman of the Administrative Board of the Arete Invest fund. The A-class industrial estate covers 10,400 m2 of the leasable area with the option to enlarge it by an additional 3,700 m2; the commencement of further construction in a part of the premises is planned for. The premises are 100 % leased to the multinational company Rompa, which focuses on the processing of plastics for the automotive and other industries and plastics for household products or packaging material. The company´s clients include brand names such as Siemens, Braun, Philips and Bosch. “The real estate is very well situated right next to the highway; it is a part of the local industrial park, and there is a sufficient quality labour force in the region, which, in itself, increases the value of the transaction,“ says Tomáš Novotný, Member of Investment Committee of the Sub-fund Arete Invest CEE II in charge of asset management. The acquisition of the industrial estate was commenced in June 2015. In the first stage, it involved an overall restructuring of legal and economic relations between the owner, the developer providing the construction and third parties. Only after all the legal and trade disputes had been settled was real estate itself purchased into the fund portfolio. Several law and consultancy firms and banks (e.g. Kocián Šolc Balaštík, Kinstellar, Contractis, Knight Frank, Raiffeisenbank and Havel & Partners) were involved due to the complexity of the whole process. Like in case of other real estate in the portfolio, the objective of the Arete Invest fund is to actively manage the purchased industrial estate and appreciate it further, for example by means of extending lease agreements, deepening relationships with the lessee or using lots that are still vacant for future construction. The new real estate in Vyškov has become a part of the the sub-fund of Arete Invest CEE II, which is currently open. The anticipated value of the administered assets of this sub-fund in the course of an expected five-year investment cycle is EUR 200 million. The sub-fund aims at the continuous appreciation of the invested investors´ funds in an amount up to 11 % per year; of which up to 6 % per year is monetary distribution paid out on a quarterly basis. The current return significantly exceeds these notified values. According to the results published most recently, the cumulated gross return of the sub-fund Arete Invest CEE II reached 40.5 % at the end of the third quarter of 2017. As of the same date (i.e. before further appreciation and now before the announced acquisition), the value of the managed real estate in the possession of the fund increased to EUR 54.8 million.
Czech Fund Arete Invest Enlarged Its Portfolio By An Industrial Park For 10 Mil Eur
In January Arete Invest completed its first acquisition this year. It is the purchase of an industrial area directly by the D1 motorway in Vyškov, which is completely leased to the supplier of plastic components, Rompa. The financial volume of the transaction was approximately EUR 10 million. https://www.investujeme.cz/tiskove-zpravy/cesky-fond-arete-invest-rozsiril-sve-portfolio-prumyslovy-areal-za-10-milionu-eur/ http://cijeurope.com/cz/encompassme-europe/29520/story/arete-invest-koupil-prumyslovy-areal-ve-vyskove
Arete Invest bought the halls in Vyškov. Because of the transaction, the company had to resolve the litigation of the previous owner first
Real Estate Fund Arete Invest has acquired a new addition to its portfolio – a fully leased industrial complex in Vyškov. Interesting on the transaction is not the size of the property or the price, which ranged around 10 million EUR (quarter billion crowns), but the circumstances of the sale. The Czech Fund picked up the Vyskov complex already in June 2015. Among other things, it is being leased to the manufacturer of design plastics – Rompa CZ. It has been growing well in recent years. But fund managers soon found out that the real estate is practically unsaleable… https://archiv.ihned.cz/c1-66041660-arete-invest-koupil-haly-ve-vyskove-vyresil-pritom-majetkove-spory-o-areal
