The total market value of Reico Long Lease now exceeds 3.19 billion crowns thanks to the new acquisition. Together with another retail fund, Reico Nemovitostní, the fund was until recently part of Česká spořitelna. However, at the turn of the year, the bank decided to sell the investment company Reico, which manages both funds with assets worth 38 billion crowns, to its parent, the Austrian financial group Erste Group Bank.
The smaller of the two funds, Reico Long Lease, went shopping under the new name. The logistics park in Slovakia, which it acquired through a so-called sale and leaseback, is considered by its representatives to be a source of stable income, also thanks to the strong tenant DSV. The ESG certification also played in the area's favor. “After opening the Reico Long Lease buyout fund last year, we have successfully launched our purchases and have thus fulfilled the promises we made to our distribution – bankers at Česká spořitelna and shareholders,” said Dušan Sýkora, Chairman of the Board of Directors of Reico.
“We have purchased the first property in Slovakia for our fund and have thus expanded our geographical diversification. This transaction will significantly help the fund’s performance, as the return on this investment is much higher than the previous cash returns,” added Sýkora, who said that the fund is still at the beginning of its buying wave and has other acquisitions in the pipeline. According to Robert Cesnak, CEO of iO Partners, which brokered the transaction, this is the largest sale of this type in Slovakia since 2018.
Reico Long Lease focuses on buildings with long-term leases and creditworthy tenants. It now owns five properties, two in the Czech Republic, two in Poland and one new one in Slovakia. At the end of January, over 47,000 shareholders had invested in the fund, and the annual return should reach around five percent.
