The REICO ČS LONG LEASE fund managed by the REICO investiční společnost České spořitelny, a.s., is buying BWI’s research and development centre in Krakow, Poland. The value of the fund’s new acquisition is approximately CZK 700 million (€27.3 million).
The BWI Research and Development Centre consists of two environmentally friendly, interconnected buildings, built-in 2020. They comprise mainly laboratory and office space, but also, for example, 365 parking spaces. The total lettable area of the buildings is almost 11,000 sqm and it is fully occupied. The sole tenant of the property is the multinational company BWI, which focuses on the development, production, and sale of suspension systems and other selected parts and components for the automotive industry. The company’s clients include brands such as BMW, Ford, Porsche, Audi, Ferrari, and Land Rover.
“The BWI research and development centre is secured on a long term lease. The acquisition is a major milestone in expanding the REICO ČS LONG LEASE fund and a clear message for shareholders and business partners on what to expect from the fund in the future,” says Tomáš Jandík, Chairman of the Board of Directors of REICO IS ČS.
The property is located in an attractive location in the Małopolska Region, in the immediate vicinity of Krakow Airport. The BWI research and development centre is located approximately 1 kilometre from the backbone A4 motorway, linking the country with Germany to the west and Ukraine to the east. The centre of Krakow is approximately 20 kilometres away and is easily accessible by all means of transport. The newly erected building was built to suit BWI, which had operated in another Krakow location for many years.
The REICO ČS LONG LEASE fund purchased the property from a joint venture of the US investment company InSite Real Estate and polish development company 7R. The buyer was represented in the transaction by White & Case, TPA, Knight Frank and Arcadis.
With the acquisition of the BWI research and development centre, the REICO ČS LONG LEASE fund has significantly increased its invested ratio in its real estate component while enhancing its sectoral and regional diversification. The total market value of the fund’s portfolio currently reaches nearly CZK 1 billion. The number of investors in the REICO ČS LONG LEASE fund has grown significantly since its unit certificates began trading in May 2021 and it had registered nearly 11,000 investors at the end of this March. In the coming months, the fund will continue to expand its acquisition pipeline such that its long term performance target should be approaching 5 percent p.a.
The REICO ČS LONG LEASE fund was established in January 2021 and it focuses on buildings with very-long-term lease agreements and creditworthy tenants. This is the second retail real estate fund established and managed by REICO investiční společnost České spořitelny. It is intended as a portfolio complement to the REICO ČS NEMOVITOSTNÍ fund and is suitable for conservative and moderately dynamic investors interested in boosting the yield of their real-estate allocation. The fund currently owns two properties – one in the Czech Republic and the other in Poland.
