ARETE plans significant investments in its third fund for 2021.
ARETE Group fulfils its investment strategy by entering into a sale agreement with Cromwell European REIT (CEREIT), sells an overall portfolio of its second fund for EUR 113.2 million and plans significant investments in the third fund for 2021.
In December, ARETE Group and Cromwell European REIT signed a purchase agreement where ARETE INVEST CEEII sells its overall portfolio for EUR 113.2 million at net operating income yield of 6.7%. Transaction is expected to close in Q1 2021, allowing for the full fiscal year 2020 closing and smooth handover period. This transaction ranks as second largest in the Czech Republic while it represents almost 25% of the overall industrial investment transactions volume concluded in the Czech Republic in 2020 to date.
“This step represents a significant milestone in our fund strategy and proves that our defined target in 2016 , to build and compile a portfolio of quality logistics and light industrial assets throughout a 5 year investment cycle, is now delivered on. It also clearly demonstrates that through consistent approach, the portfolio meets high quality standards demanded by institutional investors such as Cromwell European REIT, a listed and publicly traded REIT on Singapore stock exchange. Consistency and transparency always were and will remain to be key fundamentals of our strategy and we intend to retain and further enhance those in our third fund, ARETE INDUSTRIAL, which currently initiated its investment phase” commented Robert Ides, co-founder of ARETE group told CIJ EUROPE.
“We are now fully focused on developing and investing in the third fund, with its target value of coherent portfolio of high quality industrial and logistic assets in the CEE region at least EUR 500 million. In accordance with our fully integrated real estate investment lifecycle management approach, our team was working hard during entire year 2020 to secure tangible pipeline of investment opportunities. At the turn of the year, we successfully completed acquisition of modern, highly specialized production facility with R&D centre in Slovakia. A very reputable tenant has joined our tenant portfolio - company Hengstler, with a 150-year history, is part of the globally operating American industrial and technological group FORTIVE (on the NASDAQ/NYSE listed company),” added Lubor Svoboda, co-founder of ARETE Group and continues, “our plans for 2021 are to acquire assets in Czech Republic and Slovakia in total value of more than EUR 100 mil. The next step in our successful development will be the acquisitions of real estates also in Germany and Austria, which we are currently also assessing. We would like to complete one acquisition in these markets this year,” expressed to CIJ EUROPE today.
