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. 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, resp. both of its sub-funds, clearly positive. We closed the first sub-fund investing in residential real estate in 2017 with a total average gross return of 39% p.a. 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% pa, but investors who subscribed for the sub-fund's investment shares in the first wave achieved a gross investment return of over 20%. Bye The success of both sub-funds clearly underlines the ability of our group to prepare and implement the right investment strategy for a given investment period, “says 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 2015, when we analyzed 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 transactions worldwide. Our strategy was correct and clearly successful, "explains Robert Ides, another of the co-founders of the Arete Group, and continues:" In light of current events in the Czech-Slovak capital market, we see that our approach provides investors with a parametrically different level of certainty and fair treatment than offers 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 continue now. Our third fund is now in the investment phase, we want to fulfill 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 400 million euros. At the end of the investment cycle, we want to offer the portfolio again to institutional buyers. "
The Arete investment and real estate group was established in 2014 and focuses on real estate investments. The first Arete Invest sub-fund dealing with residential real estate has already completed its investment cycle in 2017. The second Arete Invest sub-fund investing in industrial real estate has been operating since 2016. Since 2020, a third Arete Industrial fund has been open to investors. The aim of this fund is not only investments in completed industrial real estate, but also their construction.