The ARETE Investment and Real Estate Group, which includes real estate investment funds, paid out all investors from the ARETE INVEST Subfund CEE II after the March sale of the portfolio, and thus successfully closed the investment cycle. This is the second successful closing of the sub-fund and its deletion from the register of investment funds maintained by the CNB. The ARETE Group is the only one on the Czech market to close and settle investment funds at the end of the investment cycle, directly as part of the investment strategy.
Following the sale of the sub-fund’s portfolio worth EUR 113.2 million (CZK 3 billion) in March to Cromwell European REIT (CEREIT), a publicly traded real estate investment trust listed on the Singapore Stock Exchange, the principal and returns of all sub-fund investors were duly paid out and all bank financing liabilities have been fully settled. This fulfilled all legal conditions so that the entire fund, including the sub-fund, could be deleted from the list of investment funds with legal personality maintained by the Czech National Bank with effect from 1 September 2021.
“We evaluate the results of the entire ARETE Invest fund, respectively both of its sub-funds, clearly positive. We closed the first sub-fund investing in residential real estate with a total average gross return of 39% p.a. in 2017. The second sub-fund investing in quality logistics and light industrial real estate, which we have now settled, was able to deliver and pay its investors a total average gross return of 11% p.a., however, investors who subscribed for the sub-fund’s investment shares in the first wave achieved a gross return on investment of over 20% p.a.. The success of both sub-funds clearly underlines our group’s ability to prepare and implement the right investment strategy for each investment period,” said Lubor Svoboda, co-founder of the ARETE group.
“In particular, the successful closing of the CEE II sub-fund, where we had more than 100 investors, must be assessed from the perspective of the year 2015, when we analysed market opportunities and prepared an investment strategy. At that time, industrial real estate was on the fringes of investor interest and accounted for less than one tenth of the volume of completed transactions worldwide. Our strategy was correct and clearly successful,” explains Robert Ides and continues: “In light of current events in the Czech and Slovak capital market, we see that our approach provides investors with a parametrically different level of security and fair treatment than the competition. Unconditional adherence to the investment horizon combined with the correct timing of portfolio sales are the result of precise fund management and control. Our asset valuations and revenues are based on the realized market price, real sales. We now move on. Our third fund is now in the investment phase, we want to fulfil our strategy again and build a much larger and coherent portfolio of high-quality industrial and logistics real estate in the region of Central and Eastern Europe with a target value of at least EUR 400 million. At the end of the investment cycle, we want to offer the portfolio again to institutional buyers.”
The whole article in CZ: https://tiskovezpravy.hn.cz/c1-66982100-investicni-cyklus-fondu-arete-invest-investicni-fond-s-promennym-zakladnim-kapitalem-a-s-vyporadal-vsechny-investory-a-uzavrel-investicni-cyklus
