Czech group Accolade to invest over 11 billion into the development of industrial zones along with the developer company Panattoni
Czech group Accolade, focused on investments in industrial properties for lease, will invest CZK 11 billion into Panattoni Europe’s construction of custom-built industrial buildings for manufacturing and logistics companies over the next five years. Both companies announced signing the deal today, having alredy cooperated on other projects worth 1.5 billion CZK in the past.
"We are the only group in the Czech Republic, which finances constructions in industrial zones from local, Czech resources,” explains Milan Kratina, chairman of the board of industrial group Accolade. "Thanks to the cooperation with the international industrial real estate developer Panattoni Europe we are able to take the opportunity of wide knowledge and contacts and reach out to companies from around the world to offer solutions tailored to their ideas and requirements. We expect that through this cooperation, our real estate portfolio, which is utilized on hundred percent, will grow to eleven billion within five years." says Kratina.
Pavel Sovička, CEO of Panattoni Europe, explains: "At the beginning of our activities in the Czech Republic we were mainly cooperating with partner investors from abroad. With the development of the market the demands on knowledge of geographic conditions in Central Europe and in the Czech Republic increased. Cooperation with Czech group Accolade enables us to enter smaller, but in terms of the industrial market very interesting regions in the Czech Republic and Slovakia and of course simplifies the decision-making process. This is consequently accelerating the construction and delivery of products to our clients." says Pavel Sovička, CEO Panattoni Europe.
Accolade industrial group invested into commercial real estates in the Czech Republic for global companies such as KION Group, one of the world's largest manufacturers of handling equipment sold under the brands Linde, Still and others; FACEA, belonging to the international network of the Swedish group Assa Abloy or for Ideal Automotive, German supplier of car components for companies such as BMW, Volkswagen and others. In addition to the construction of rental space, the group Accolade also prepares land properties for industrial construction. Along with Panattoni Europe, Accolade group succeeded in preparing the conditions for entry and sale of tailor-built manufacturing warehouse to the largest manufacturer of office equipment in the world, Steelcase, in Panattoni Park in Ostrov u Stříbra.
Czechs love real estate investments
Accolade group is chosen mainly by Czech investors, individuals, legal entities, funds, typically ex-owners of successful companies, high-ranking executives of large companies or successful entrepreneurs. Among them for example Prokop Svoboda, co-owner of Svoboda & Williams: "The possibility of investing in industrial real estate is completely new on the Czech market and I invested my own funds with Accolade. The clients of Svoboda & Williams are often people for whom the purchase of real estate represents an investment for the future and therefore we have also made an agreement about marketing representation with Accolade. I can confirm that the demand for the opportunities to participate at the construction of industrial parks is increasing," says Prokop Svoboda.
"Czechs love real estate investments, but they are limiting them in particular areas such as residential or office spaces. But imagine that it would be possible to get a stable tenant for 10 or more years for your investment estate at the moment of buying. This sounds like a fairytale on the housing market while investments into the industrial properties offer just this kind of security and stability with a certain return. It is due to the fact that the tenants are really strong partners and in the case of industrial real estates, the investments take place only after a fixed long-term lease conditions are agreed and construction contract is signed," explains Milan Kratina.
Stable market of the size of 100 billion
The business real estate market in the Czech Republic is worth about a hundred billion CZK. Czech Republic is also a very popular place to expand or relocate production. Compared to Germany, which is usually the target market, the labor costs in the Czech Republic are roughly one-third lower and the energy prices are lower, too, while the quality of the work is the same. With the subsiding European economic crisis, the demand for new investments is very high again.
"The Czech Republic and Slovakia represent strategic market for us, because they are situated at the intersection of major transportation routes between Western, Central and Eastern Europe. Parks, which we are offering together with Panattoni Europe are located in carefully selected locations reflecting the economic and logistic clusters in Europe," says Milan Kratina.
Czech industrial group Accolade focused on investing into industrial properties in cooperation with the global developer Panattoni Europe prepares and offers 15 industrial parks in the Czech Republic and Slovakia. It provides the landscape preparation for the construction of industrial properties and it consequently invests into the construction projects itself. Accolade Group offers its own land property in the industrial parks in strategic locations in Aš, Cheb, Stříbro, Mladá Boleslav, Rychnov nad Kněžnou or in Krásno nad Kysucou.
Panattoni Europe and Accolade won the Industrial Zone of the Year, the Investor of the Year and the Business Property of the Year prizes with their expansion of the industrial park in Stříbro in the Tachovsko region in the contest organized by CzechInvest and the Association for Foreign Investment – AFI. More on www.accolade.cz
Panattoni Europe is part of the Panattoni Development Company, one of the largest industrial developers in the world, with 26 offices in North America and Europe. Currently it is building a distribution center for Amazon in the industrial zone of Panattoni Park Prague Airport in Dobrovíz and two similar projects located in Poland, among other. Panattoni is operating in Central Europe since 2005. The company offers more than two million square meters of modern industrial space in the Czech Republic, Poland and Slovakia. It is primarily engaged in the tailor-constructions, so-called. Build-to-suit. Among its key customers are companies such as Tesco, H&M, ND Logistics, Still, Schenker, Hartmann, Time out, and many others along with the recently joining Amazon. More on www.panattoni.cz
Svoboda & Williams
Svoboda & Williams provides a full spectrum of services in the residential and commercial real estates field. It has been operating on the Czech market over 20 years, especially in the sector of sale and lease of premium residential real estate in and around Prague. Svoboda & Williams Investment Management offers solutions to clients seeking opportunity for investment, refinancing of real estate projects and portfolios or their management. Thanks to contacts with hundreds of real estate investors and shareholders of and their dominant position on the Czech real estate market, Svoboda & Williams are ideal information channel for getting the attention of investors and other relevant parties for the Accolade group.