News Article Arete Czech Republic fund industrial investment manufacturing Slovakia
by Property Forum | Investment

The third fund of Czech investor Arete Group has acquired a modern, highly specialized production facility with a research and development centre and with the potential for further development in Kežmarok, Slovakia. The value of the investment exceeded €10 million.

The third fund of Arete Group, focusing on quality industrial and logistics assets in the region of Central and Eastern Europe, completed the acquisition of the production facility in Kežmarok, Slovakia, in December 2020.

The complex is used not only for production and storage but also as a global research and development centre of the German company Hengstler with a 150-year history, which is part of the globally operating American industrial and technological group FORTIVE.

"The current completion of this transaction is a clear signal that we are able to fulfil the fund's strategy regardless of the complications of the COVID-19 pandemic. We are able to find interesting investment opportunities with further development potential. The strategic goal is to purchase quality industrial properties for the fund and to acquire creditworthy international tenants with a high rating. The acquisition thus fully fulfils both of just mentioned 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 of land that are part of the acquisition allow us to create conditions for long-term and stable growth of the tenant. We are pleased to welcome company Hengstler to our portfolio of premium tenants," said Lubor Svoboda, Co-Founder of Arete Group.

The industrial complex, built in 2017, has over 10.000 sqm of leasable area with the possibility of expansion by another almost 5.000 sqm. During the course of 2021, the new owner plans to start the new construction.

"Hengstler's interests in Kežmarok are strategic and long-term. It currently employs approximately 400 highly skilled employees not only in manufacturing but also in its global research and development centre. The advantage of the region is the good availability of skilled labour. The tenant has a long-term lease contract. Its production program is highly diversified - the key components of the production program are various specialized electromechanical components, control panels and relays, which are supplied across all markets without specific industry or customer dependence,” concludes Robert Ides the positive evaluation of the transaction,” explains Robert Ides, Co-Founder of Arete Group.

Arete sold its first fund, a portfolio comprising 11 logistics and light industrial properties in the Czech Republic and Slovakia, for €113.2 million to Cromwell EREIT Management at the end of 2020.