The Arcona Property Fund closed 2017 with a valuation uplift of 3.7 percent compared with the equivalent portfolio a year earlier. The assessed value of the Fund’s four properties in the Czech Republic rose by 5.7 percent and the eight properties in Slovakia was up by 2.8 percent, while the value of the 12-asset Polish portfolio remained stable.
Reflecting strong operational performance, successful transactional results and valuation gains, the net asset value per share of the Fund increased from €11.69 to €13.35 over the twelve months to 31 December 2017, an increase of 16 percent. The market price per share on Euronext Amsterdam increased from €5.40 to €7.40 over the twelve months to 31 December 2017, an increase of 37 percent. In addition, an interim dividend of €0.10 per share was paid in August 2017.
During 2017 four assets were acquired in Poland and two small office buildings, in Prague and Kosice, were sold. The Fund’s portfolio grew in size from €75.02 million to €89.68 million, an increase of almost 20 percent.
“It was another strong year for our flagship Arcona Property Fund in 2017, with its positive performance reflecting rising demand, increasing rents and a lack of new supply across Central Europe’s property markets. Our focus going forward will be on continuing our acquisition programme, aiming to raise the total asset value of the Arcona Property Fund to €500 million by adding 20-30 assets over the next three to five years,” said Guy Barker, Managing Director of Arcona Capital.