INVESTIKA real estate fund successfully completed its largest acquisition in Poland to date at the end of 2022. It acquired a complex of two modern office buildings in Katowice, Face2Face Business Campus, with a total leasable area of over 47,000 sqm.
The value of the transaction, which was completed by the largest Czech non-bank retail real estate fund together with the Luxembourg private equity company Bud Holdings SA, significantly exceeds EUR 100 million. INVESTIKA real estate fund strengthened its stability and regional diversification with the new acquisition. More than half of the fund’s total income now comes from foreign real estate. The development of individual economies thus has less and less impact on the overall performance of the fund.
“The Face2Face campus is top-notch not only in terms of location, mix of individual tenants and architectural and construction quality, but also in terms of the highest possible sustainability standards. The property was developed by Echo Investment, which took great care to ensure low energy consumption, water conservation and a sophisticated waste management system. Thanks to this, the complex has a BREEAM Excellent sustainability certificate,” describes Václav Kovář, portfolio manager of INVESTIKA real estate fund.
The sustainable approach is not only reflected in the interiors of both buildings and the technologies used, but is also underlined by the unique courtyards with shared green zones. These include a basketball court, a relaxation area with benches and loungers and ornamental flower beds. The complex also has charging stations for electric vehicles and facilities for employees using bicycle transport.
Thanks to the 60-metre height of one of the buildings and the new green areas in the urban development, Face2Face Business Campus will become one of the landmarks of Katowice city centre shortly after its completion in November 2020. Katowice is the heart of Poland’s second largest conurbation with a population of almost 3 million. “Poland’s economy has shown great stability in recent years and is one of the most dynamic in Europe, which is boosting interest in prime office space in attractive locations,” said Kovář, adding that Face2Face Business Campus is achieving almost 100% occupancy with creditworthy tenants from companies such as Deloitte, Honeywell, Orange and Capgemini.
The acquisition in Katowice capped a record year for INVESTIKA Real Estate Fund in terms of expansion in 2022, with a total of 19 properties added to the portfolio in the Czech Republic and abroad. The fund’s capital grew by more than CZK 4 billion to almost CZK 14 billion. “The inflow of funds into the fund was accelerated in 2022 by inflation, which forced many investors, both individuals and companies, to look for a way to appreciate the free money and protect it against loss of purchasing power,” explains Kovář, adding that inflation will compensate for any changes in property valuations in 2023 through inflation clauses and rent growth.
According to Kovář, the downward pressure on property prices is now evident mainly in residential housing due to rising interest rates, which in the Czech Republic and the rest of the European Union is worsening the availability of mortgages. “For commercial real estate, the situation is not so clear-cut, a lot depends on the location and type of property. High-quality office buildings and logistics or industrial complexes continue to hold their value, especially thanks to rising rental yields,” says Kovář.
In addition, the stability of INVESTIKA real estate fund is also strengthened in the long term by the wide geographical diversification of the portfolio. Moreover, INVESTIKA real estate fund plans to continue its expansion into Czech and foreign properties this year as well. “Preparations for some transactions are already underway and we plan to take advantage of other attractive opportunities that will arise during the year,” says Kovář.
