ČS nemovitostní fond, managed by REICO investiční společnost České spořitelny, a.s. (REICO IS ČS), acquires second phase of Industrial Park Dubnica nad Váhom (Dubnica Industrial Park), Slovakia for ca. CZK 241 mil. (€9.5 mil.)

The second phase of Dubnica Industrial Park represents fully occupied, new-built logistics warehouses completed in 2018 and comprises warehouse, technical and office premises with the total lettable area of 16.6 thousand square meters. Tenants include food chain Lidl and two subcontractors from automotive sector - AAF and LEONI. AAF specialises in manufacturing of air filtration equipment and LEONI is a supplier of energy solutions for the automotive industry.

‘The acquisition of second phase of Dubnica Industrial Park increases the allocation of ČS nemovitostní fond in the industrial sector as well as its allocation in Slovakia. Industrial properties are increasingly attractive amongst investors due to their stability of income stemming from long lease contracts, which is why ČS nemovitostní fond plans to further increase its share in this sector,’ says Filip Kubricht, Chairman of the Board of Directors of REICO IS ČS.

The Property is situated in the region of Western Slovakia, which, together with the Bratislava region has 88% share of all Slovak industrial stock. It is one of the most important industrial regions in Slovakia. Dubnica Industrial Park benefits from an excellent transport accessibility, being located at the exit of the D1 motorway, which is the most important arterial road in Slovakia and links Bratislava and Košice, the two largest cities in the country.

ČS nemovitostní fond acquired the Property from development and investment company Invest4SEE Investment Holding GmbH, which focuses on the industrial real estate sector and concentrates its development activities in the Central and Eastern European region. The property was constructed in 2018 by Goldbeck and the development was carried out by SEE RE Two, a subsidiary of the vendor company Invest4SEE Investment Holding GmbH. The buyer was represented by JLL, Wilsons, ASB and OM Consulting.

The acquisition of the first phase of Dubnica Industrial Park (89 thousands sq m) in March 2018, with Continental as the key tenant occupying almost 80% of the premises, marked the return of ČS nemovitostní fond into the industrial property sector. Thanks to its convenient location in industrial western Slovakia and the proximity to the D1 motorway, the second phase of Dubnica Industrial Park quickly found its tenants. ČS nemovitostní fond exercised its secured right to purchase the building immediately after its full occupancy. The purchase of the second phase will contribute to the consolidation of Dubnica Industrial Park.

By purchasing the second phase of Dubnica Industrial Park, ČS nemovitostní fond expanded its portfolio to 17 buildings and slightly increased its allocation in the logistics sector to 4%. The total market value of owned real estate is now almost CZK 30.7 billion. As of 31 October 2019, ČS nemovitostní fond had more than 82,000 shareholders and its return since the beginning of this year is 3.38% (as of 31 October 2019).

‘The acquisition of the second phase of the Dubnica Industrial Park will provide our unit holders with above-average current yield combined with the potential for long term capital gain due to synergic effects stemming from consolidation of the entire park’ adds Tomáš Jandík, Chief Investment Officer of REICO IS ČS.

ČS nemovitostní fond was established in February 2007 and is the oldest and largest open-ended Czech real estate fund. The fund is designed primarily for conservative investors with its long term aim to deliver higher returns than the level of return of government bonds. The fund now holds nine properties in the Czech Republic, five in Slovakia, and two in Poland.