ČS nemovitostní fond, the Czech property fund managed by REICO IS ČS, acquires industrial park located near Dubnica nad Váhom,  Slovakia.  Transaction volume amounts to ca. EUR 38,9 mil. (CZK 990 mil.).

After recent disposal of the Táborska 31 office building in Prague 4,  this acquisition expands fund’s portfolio back to 13 buildings and significantly enhances its sectoral diversification. The aggregate market value of its properties now exceeds CZK 20.5 bn.  Over 64,000 shareholders had invested in the fund as at 31 January 2018 and its 5-year average return was 2.88% p.a. (as at 22 February 2018).

“ČS nemovitostní fond substantially improves its sectoral and regional diversification by our come back to the logistics sector and expanding our Slovak presence. We expect that this strategic step will strengthen our long term return generation potential and hence contribute to satisfaction of our client base,”says REICO’s Chief Executive Officer Filip Kubricht. 

Dubnica Park is a new logistics centre built in 2016. It comprises warehousing, technical, and office premises with a total leasable area of 89,400 square metres of which 97% of leasable area are occupied.  The property also includes 96 parking spots for passenger cars and 32 trucks.

Biggest tenant in the Dubnica Industrial Park is the German corporation Continental, a leading global tyre producer and supplier of technology solutions for the automotive industry, which takes up majority of space. Other important tenants include the Swiss transportation and logistics company Kuehne+Nagel, the Lidl food chain, and the Dutch brewery group Heineken.

 “Acquisition of this newly built logistics asset and a long term commitment of Continental to the location means that our fund should benefit from significant income return with excellent covenant strength for a very long period combined with high capital value preservation potential,” adds Tomáš Jandík, REICO’s Chief Investment Officer.

The property is situated in Western Slovakia, where, combined with the Bratislava region, 93% of all Slovak industrial stock is located. It is one of Slovakia’s most important industrial regions. Dubnica Industrial Park has excellently accessibility as it is located on an exit from the D1 motorway, the most important transport artery in Slovakia, linking the country’s two largest cities – Bratislava and Košice.

ČS nemovitostní fond bought the property from the development and investment company Invest4SEE Investment Holding GmbH, which concentrates on the industrial property sector. Its development and investment activities focus on Central and Eastern Europe. The property was built in 2016 by Goldbeck. The developer was SEE RE One, a part of the vendor company Invest4SEE Investment Holding GmbH. Purchaser was represented by JLL, Wilsons, ASB and OM Consulting.

ČS nemovitostní fond was established in 2007 and is the largest and oldest open-ended real estate fund on the Czech market.  It is designed primarily for conservative investors and aims for long-term return in excess of government bonds yields. The fund now holds seven properties in the Czech Republic, four in Slovakia, and two in Poland.