Prague, 15 March 2022 – real estate fund INVESTIKA, one of the largest retail real estate funds in the Czech Republic, has announced its second acquisition this year. After a set of three residential properties in the Czech Republic and Spain, it has now acquired into its portfolio a production-logistics complex in an attractive location near Wroclaw, Poland. The value of the transaction amounts to approximately one billion crowns.
The property is occupied by a stable tenant on the basis of a long-term lease contract in the form of an American company operating in the automotive sector. In addition, the entire complex is characterized by a high level of applied technologies, in which more than 100 million euros have been gradually invested in the past. “Demand for commercial properties in the field of logistics and production is currently very strong from tenants and investors, with potential for further growth in the future. In this particular case, we also had the opportunity to take over an extremely high quality fully occupied complex in a desired location, which will further deepen the geographical and sectoral diversification of assets in our fund,” said portfolio manager of the real estate fund INVESTIKA Václav Kovář, adding that the seller was a Belgian investment fund.
He also stressed that the transaction will contribute to a substantial increase of the WAULT weighted average of lease term in real estate fund INVESTIKA to 5.5 years. “This indicator is important. The higher the value of WAULT in a real estate fund, the more predictable its future income becomes,” added Václav Kovář.
For real estate fund INVESTIKA, this is the third acquisition in Poland since it entered abroad for the first time with the purchase of the Szyperská office complex in Poznan less than a year ago. The acquisition of the production-logistics complex was completed by the fund together with the Luxembourg private equity company BUD HOLDINGS SA., which owns a minority stake in the acquired real estate company.
In addition, at the beginning of this March, the acquisition of two service centres for buses and trucks MAN in Gdansk and Wroclaw was formally completed. INVESTIKA, the real estate fund, announced the signing of a contract for this transaction with a total value of more than CZK 400 million already in November 2021. “We have not given up on the Czech Republic, but foreign acquisitions are now often more attractive than Czech ones in terms of fulfilling the fund’s objectives,” said Kovář.
The fund has financed the current acquisition in Poland thanks to strong investor interest from its own funds – the influx of new investments from people, who, among other things, are approached by a long-term target yield of 4-6% per year, amounts to hundreds of millions of crowns every month. In addition, several other acquisitions are already in the sights of the real estate fund INVESTIKA. “These are mainly large office projects in Poland,” the portfolio manager of the fund described the nearest plans.
ABOUT real estate fund INVESTIKA, open-ended mutual fund
Real estate fund INVESTIKA, OPF, whose manager is INVESTIKA, investiční společnost a.s., entered the Czech market in 2015. The fund offers conservative investments with attractive returns to its clients from the general public and since its inception it has brought investors a return of almost 35%* (CZK class). In 2020, the Euro asset class was also created, which achieved a performance of 8.96% for the whole of 2021*. The volume of assets under the fund’s management totalled CZK 10.5 billion at the end of 2021. More information about the investment company and real estate fund INVESTIKA, OPF, can be found at www.investika.cz.
ABOUT BUD HOLDINGS SA.
BUD HOLDINGS SA. is a private commercial company based in Luxembourg, which deals with private equity investments mainly in real estate assets. It focuses its attention on the preparation and realisation of investments in Central and Eastern Europe, usually in cooperation with a strong majority shareholder. During the last 3 years, BUD HOLDINGS SA. as a co-investor participated in real estate transactions amounting to more than EUR 100 million. More information about BUD HOLDINGS SA. can be found at www.bud-holdings.com.