Arete Invest, a Czech investment fund focused on real estate, plans to invest around €30 million in Slovakia in 2018. It is considering new construction on industrial premises it already owns as well as new acquisitions. The company sees great potential in the Slovak market.
“The Slovak market is advantageous for us for several reasons,” said Lubor Svoboda, Arete Invest co-founder and board member, as cited by the TASR newswire. “These are chiefly its economic stability, openness, the European Union, standardised legislative procedures and a similar mentality.”
Several studies have shown that there is less competition in Slovakia and definitely higher demand for industrial real estate than in the Czech Republic, pointed out Svoboda.
Arete Invest is considering investing in two fields. The first one is a new construction project on premises that it already owns that would bring new jobs. At the same time, it has mapped out some investment opportunities and is currently holding talks with certain entities on purchasing new plots that have already been built up and are profitable.
The investment fund currently owns two class A premises in Slovakia. The first one is an industrial area in close proximity to Kia’s automotive plant near Žilina. This plot has been completely rented out to car component supplier Grupo Antolin. The second one is an industrial and logistics park called Arete Park Nové Mesto, located near Nové Mesto nad Váhom (Trenčín Region), part of which is made up of further plots of land designated for construction development.
The National Bank of Slovakia has also positively evaluated the development of the commercial real estate sector. Both the manufacturing industry and the commercial real estate sectors have posted strong growth in loans, with the quarter-on-quarter rate attacking a level of 15 percent during the first quarter of 2017. The aforementioned development continues to increase the importance of sectors that can also be described as relatively sensitive to economic development, reads the central bank’s latest Financial Stability Report.
At the end of 2018, the offer of housing units in newly finished apartment buildings in Bratislava hit a low since 2002-2005, when this market started developing in Slovakia. This resulted in an increase of average prices of apartments.
The iconic building of the British retail chain Tesco department store in the centre of Bratislava has changed hands. The new owner of the building is the Mirage Shopping Center company of Žilina-based businessman George Trabelssie. Since 2016 the retail chain Tesco has sold five department stores across Slovakia. Trabelssie, who is close to former chair of the Slovak National Party (SNS) Ján Slota, acquired Tesco department stores also in Nitra and Žilina, the Hospodárske Noviny business daily reported. Tesco will continue to operate in the building on Kamenné Square as it will rent the premises.
The reconstruction of the Park Inn by Radisson Danube hotel in Bratislava has become the ugliest new building constructed between the years 2011 and 2018. As much as almost one third of 1002 participants in a survey organised by the website Trend Reality of the economic weekly Trend voted for it. The weekly launched the survey in early December. Its goal was to start a discussion and hold up a kind of mirror to developers.
Prices of apartments grew at a two-digit pace in Slovakia in 2018. The average price of an apartment increased from €1,479 per square metre to €1,655 per square metre during the first 11 months of 2018. This means an increase of €176 per square metre or 11.9 percent, Vladimír Kubrický, analyst with the Real Estate Union, told the TASR newswire.
Bratislava’s Old Town has gotten a new square. It is part of a new office-residential complex called Blumental, built by the development company Corwin. It is flanked by streets Mýtna and Radlinského and interconnects with them. It was named after mediaeval King Matthias Corvinus, Matej Korvín Square.
Bratislava is scheduled to get a new landmark within a few years. The developer J&T Real Estate (JLRE) has obtained a development permit for the project of extending Eurovea on the Danube embankment. Included is the 168-metre high Eurovea Tower, the first building in Bratislava that meets the latest criteria for being called a skyscraper, i.e. higher than 150 metres. The residence tower will have 47 storeys and have almost more than 380 residential units. The project will add 84,000 square metres of retail premises to the existing ones in the first phase of Eurovea, the Hospodárske Noviny wrote.
The Saudi-Arabian company Sisban has started building a brand new logistics park near the village Chocholná-Velčice in the Trenčín Region. Sihoť Park will spread over 160,000 square metres, while investments are projected at €50 million. This is the company’s first investment in Slovakia, the TASR newswire reported.