The third fund of the Arete Group focused on quality industrial and logistics assets in the region of Central and Eastern Europe completed the acquisition of a production facility in Kežmarok, Slovakia, in December. It is the purchase of an area used not only for production and storage, but also a global research and development center of the German company Hengstler with a 150-year history, which is part of the globally operating American industrial and technological group Fortive. The financial volume of the transaction exceeded 10 million euros.
"Even at this time, the completion of this transaction is a clear signal that we are able to fulfill the fund's strategy regardless of the complications that the covid-19 pandemic brings. We are able to find interesting investment opportunities with further development potential. The strategic goal is to buy quality industrial real estate into the fund and to acquire creditworthy international tenants with a high rating. This acquisition undoubtedly fulfills both of these attributes. An important factor for us is that the tenant is interested in expanding and investing in sophisticated research and development technologies in the locality. Other vacant plots for expansion, which are part of the acquisition, allow us to provide the tenant with conditions for its long-term and stable growth. We are pleased to welcome Hengstler to our portfolio of premium tenants,” said Lubor Svoboda, co-founder of the Arete Group.
"Class A industrial complex built in 2017, which has over 10 thousand. m2 of leasable area with the possibility of expansion by another almost 5 thousand. m2, while in the course of 2021 it is planned to start new construction. The complex is 100% leased to the German company Hengstler. Fortive, a global industrial and technology holding company to which Hengstler belongs, is a company listed on The New York Stock Exchange, part of the Nasdaq index, and had sales of $ 7.3 billion in 2019. The high credibility of the tenant is evidenced by the fact that in 2019 alone, the Fortive Group made a profit of more than USD 1 billion," explains Robert Ides, co-founder of the Arete Group, and continues: "Hengstler's interests in Kežmarok are long-term. It currently employs approximately 400 highly skilled employees not only in manufacturing but also in its global research and development center. The advantage of the region is the good availability of skilled labor. The lessee has a long-term lease and its production program is highly diversified. The basic component of the production program is various specialized electromechanical components, control panels and relays, which are supplied across all markets without specific trade union or customer dependence," concludes the evaluation of the transaction Robert Ides.
ARETE INDUSTRIAL Fund was established in 2019 as the second fund and the third real estate investment product of the Arete Group. It focuses exclusively on investments in quality production and logistics properties with a stable yield and complements them with new own construction to increase the total yield. Owned real estate is steadily managed and developed in order to sustainably increase their return. The fund's main investment regions are the Czech Republic and the Slovak Republic, supplemented by Central Europe with a target value of assets under management of at least EUR 400 million. The fund is only open to qualified investors.
Source:// Systémy logistiky