Accolade Fund has had a successful second quarter of 2021, in which it exceeded 1 million sqm of fully let space.
Investments in the Accolade Industrial Fund outperformed the previous periods in the second quarter of 2021 and the value of the fund increased to €863 million (approx. CZK 22 billion). The Fund's performance was positively impacted by increased investment activity in the European industrial real estate market and rising prices within this area. Investment appreciation in the second quarter reached 10.21% in the CZK class and 11.49% in the EUR class.
The return of the Qualified Investor Fund over the last 12 months was 17.94% in the CZK share class and 20.59% in the EUR share class. This follows the performance of the fund over the last three years, during which the fund has provided its investors with a total return in the CZK class of 47.78% and in the EUR class of 47.51%.
„The European industrial property market saw a significant increase in investment activity in the first half of 2021. In total, transactions worth €25.5 billion were transacted, an increase of 64% compared to the first half of 2020, according to CBRE. More transactions have taken place and are underway in these months. The growth in investment activity in the markets in which the Fund operates is causing property prices to rise, with industrial property prices currently showing the highest growth compared to other types of commercial property. Since the beginning of 2021, the "prime yield" of industrial space in the Czech Republic has fallen by 0.5% and in Poland by 0.6%. It is these figures that have caused our external valuers CBRE and Knight Frank to significantly revalue our portfolio, which is reflected in the fund's share price,“ explains Milan Kratina, Chairman of the Board of Accolade Industrial Fund.
During the second quarter of this year, Accolade Fund managed to make several interesting acquisitions, thanks to which it exceeded the total leased area of 1 million sqm. The Fund welcomed the first park in Slovakia to its portfolio, namely the industrial park in Košice, in close proximity to Košice Airport, its convenient location is used by several global brands such as Faurecia or XXXLutz.
The Fund is also expanding with four more projects in Poland. The new addition is a park in Częstochowa, where the industrial space is used by long-time partner InPost. Furthermore, sia Abrasives Polska, which belongs to the Robert Bosh Group and Prime Cargo Poland have joined the park in Goleniów. The projects in Poland are complemented by the Minsk Mazowiecki park with tenants TW Plast and Meblomaster, as well as the park in Kielce, where the Vive group is expanding and TERG has newly arrived. Further projects have also expanded in the Czech Republic, with the car glass manufacturer Saint Gobain expanding in the Hořovice park.
As both the demand for industrial space from tenants and the demand for industrial real estate investment from major institutional players continues to grow, Accolade Fund expects further growth in the value of its portfolio. However, the yields of the underlying assets remain at a level for the time being such that the Fund is able to deliver a 7% p.a. return to investors based on rental income (excluding the impact of revaluation).
„In the coming period, we expect to grow our portfolio, which will be expanded not only by additional locations but also by new tenants with whom we will develop and jointly build a European infrastructure for modern business,“ adds Milan Kratina.
As of 31 August 2021, Accolade Fund's portfolio consists of 1,055,438 sqm of leasable space for modern businesses, with 21 sustainable industrial parks used by 77 global brands. The total value of the Fund's portfolio extends to €863 million (CZK 22 billion) with investments from almost 1,700 qualified investors.