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.
The main industrial regions in Slovakia are reporting a lack of accommodation capacity for workers. These are in the vicinities of industrial and logistics parks mostly along highways connecting Bratislava with Košice (D1), leading from Bratislava to the Czech Republic (D2) and the dual carriageway from Trnava to Banská Bystrica (R1).
The developer, belonging to the Bencont Group has already started pulling down the buildings and cleaning the three-hectare area. “We believe that Rínok Rača, which we will begin to construct soon, will be the new centre of the borough and will naturally fit into the life of its citizens,” said Martin Šimurda, representative of the developer Rínok Rača, as cited in the press report.
The new indebting rules tightened by the National Bank of Slovakia (NBS) will primarily impact citizens of the Slovak capital, Bratislava. They will be able to buy on credit, from an average wage, maximally a one-room flat in a new building or a two-room flat in an older block of flats. Other regions will be significantly less affected by the new lending cap, Poštová Banka has found out.
In the first quarter of 2018, the overall offer of office space in Bratislava reached almost 1.72 million square metres. The vacancy rate slightly decreased to 5.99 percent from 6.18 percent in the previous quarter. The lowest vacancy rate was in the Bratislava V district (3.22 percent), the highest in the Bratislava IV district (9.05 percent), the Slovak branch of the real estate services firm Cushman & Wakefield reported on April 20 as cited by the SITA newswire.
The developer Penta Real Estate is preparing the second phase of the Bory Bývanie residential project. It will create 287 apartments in nine, four- to six-storey blocks. It plans to launch the construction during the third quarter of 2018.
Petržalka, the most populated borough of Bratislava, has gotten a new roofed market place, Petržalská Tržnica. It is located in a reconstructed shopping centre of almost 5,000 square metres on Bratská Street. The new market place welcomed its first shoppers on Friday, April 6.
The British retail chain Tesco is continuing the sale of its department stores, former Priors, in Slovakia. Following the sale of its stores in Žilina, Nitra, Prešov and Košice the retail chain is now selling its last piece of real estate in Slovakia, the department store My (We in English) on Kamenné Square in Bratislava. Tesco Stores SR has confirmed negotiations with potential buyers, the Trend weekly reported.