REALIA FUND SICAV, a.s. (“REALIA”), a qualified investor fund that focuses exclusively on the purchase and operation of retail parks in the regions, is strengthening its position by purchasing a retail park in the South Moravian Region. This acquisition brings the fund’s portfolio to 16 properties with a total value of over CZK 1.9 billion.
ROSSMANN, SPORTISIMO, PEPCO, KiK, SUPER ZOO, DATART, Orion and Wiky. All tenants benefit from the direct vicinity of the adjacent KAUFLAND hypermarket. This acquisition is in line with the investment strategy of Realia Fund, which since its inception has invested exclusively in 100% leased retail parks with creditworthy tenants whose services are oriented towards the basic needs of residents, such as groceries, drugstores and pharmacy supplies.
“The retail park is fully leased with average lease lengths exceeding 6 years,” adds Tomas Oplíštil, Commercial Director and member of the Realia Fund’s Investment Committee, adding: We manage to buy projects off-market directly from the developer. We have agreed the terms and timing of the sale with the developer, who has long specialized in building retail parks.”
The entire shopping zone offers visitors a Kaufland hypermarket, a self-service car wash and eight shops selling electrical, clothing, toys, home, sporting and pet supplies and other products. Customers can get to the complex by car, and there are over 200 parking spaces around the shops. They can also use public transport.
The REALIA fund is showing stable results thanks to its strategy of focusing on fully leased retail parks with creditworthy tenants and long-term lease agreements. The fund uses bank loans to finance acquisitions and the LTV is now approximately 55%. A key parameter in the financing is the interest rate fixings (or IRS) on all loans. As a result, the fund is not under pressure from high interest rates in the market and has achieved an appreciation of 15.15% over the last 12 months (as at 30/11/2023).
“We have seen an increased number of investors in recent months. The management’s priority remains the safety of the entire portfolio and the resilience of the fund to rapid and significant changes in the financial and real estate markets. Both the founder and the management have money in the fund. We therefore share a common goal with our investors, which is the safe appreciation of the investment,” Oplíštil explains.
Source: REALIA and CTK
Photo: Moravské Třebové, REALIA
