Accolade fund keeps growing in Q3. One of the largest funds in Central Europe is now headed for Spain
Despite current economic developments, the Accolade Industrial Fund keeps growing, having appreciated by 2.49% in CZK over Q3 2022. The upward trend in the fund’s performance is driven by significant rent increases, which, together with inflation clauses in lease agreements, contribute to the fund’s rising yields. Adding four parks over the last quarter, the fund became one of the largest in Central Europe. In the near future, the fund will continue its international expansion as it enters the Spanish market.
“We are lucky to be operating in the segment of industrial, logistics and e-commerce properties, where the vacancy rate is still extremely low. Rents are rising significantly, increasing the fund's yields from this type of real estate,” said Milan Kratina, Accolade CEO, adding that this is due not only to stable demand, but also to inflation clauses included in lease agreements.
“Much depends on the particular fund and the strength of its lease portfolio – whether tenants are able to accept the new market norms. The tenants in Accolade’s portfolio have been doing well so far as nobody is leaving and 99.5% of rents have been collected,” said Kratina.
Due to rising interest rates, project funding has become one of the hot topics on the real estate market. “In terms of the euro market, where the fund's projects are financed, I am pleased that we have been able to secure or refinance the vast majority of funding for existing projects last year and in the first quarter of this year – before the rise in rates,” said Kratina, adding that fund refinancing will not be an issue until 2026 or 2028.
The Accolade fund returned 2.49% in CZK and 1.92% in EUR over Q3 2022. The total leasable area of the fund’s real estate has increased by almost 280,000 m2. In reaching the milestone of 1.5 million m2, the fund has become one of the largest in Central Europe. Its portfolio currently includes 29 fully leased industrial parks with 96 tenants in four European countries: the Czech Republic, Slovakia, Poland and Germany.
The fund plans to enter the Iberian Peninsula
Preparations are currently underway for the first property acquisition in Spain. It consists of a logistics facility with a leasable area of over 6,600 m2, which was handed over to the tenant TXT Transportes in late November. The building is located near Seville, the fourth largest city in Spain with a population of almost 1.5 million. The main advantage of the facility is its attractive location and excellent transport infrastructure.
“We are delighted to help TXT Transportes grow in the region. Interestingly, as part of our ESG strategy, the project was carefully adapted to the local climate, which is quite dry. Native plants, such as sweet-smelling rosemary and lavender, are grown around the building,” explained Jan Mazáč, Accolade Senior Manager.
New additions to the fund's portfolio
In the third quarter, the Accolade fund added four parks to their portfolio, including one in the Czech Republic and three in Poland. The unmissable Czech addition was the Kojetín distribution centre in the Přerov area, a turnkey project for e-commerce giant Amazon. The facility is a state-of-the-art logistics building and the first true multi-storey distribution centre in the Czech Republic. This property, built where the settling tanks of a sugar refinery once stood, is valued at more than 5 billion CZK and its total area exceeds 187,000 m2.
The new Polish acquisitions are part of further expansion in Szczecin and Gorzów. With over 122,000 inhabitants, Gorzów is one of the two biggest cities in Lubuskie Province, West Poland. Thanks to its proximity to Germany, the Gorzów Wielkopolski Park is an ideal location for international entrepreneurs planning to relocate or expand their business in Central Europe. Nearly 16,000 m2 has been leased to road transport company Bustrans. The total area of the park in Gorzów is almost 70,000 m2.
The main advantage of the port city of Szczecin is its integration into the European highway network as well as its proximity to an international airport. The tenants at the Szczecin III Park, with an area of more than 30,000 m2, include e-commerce company Procent, retail company DS Produkte, logistics specialist Rhenus, and fishing equipment leader Svendsen Sport. The newest tenant at the Szczecin Załom facility is leading online car parts dealer Autodoc.
The Accolade Industrial Fund was established in 2014. It is intended for qualified investors, who have the opportunity to take part in the development of modern, sustainable industry in Europe. The fund currently has over 2,500 investors.
The fund's portfolio consists of 29 industrial parks with 96 tenants in the Czech Republic, Poland, Germany and Slovakia, and is worth 1.2 billion EUR. The leasable area of all properties is more than 1.2 million m2. The parks also meet the strictest environmental criteria and have passed the prestigious BREEAM sustainability certification. This makes them one of the greenest industrial building portfolios in Europe. The minimum initial investment is set at 75,000 EUR.
The recent significant growth of e-commerce shows the importance of modern industrial facilities, which have become an interesting investment opportunity. The fund has ranked several times in a row as the best performing real estate fund in the Czech Top Real Estate Funds ranking. For more information, please visit https://accolade.eu/cs/fond.
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Lucie Mareš Heřmanská
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lucie.hermanska@heroandoutlaw.com