Author: Peter Kremský
Source: www.reality.etrend.sk , 7.12.2009
UPPER HEADLINE: Arca Capital CEE acquired one third of a Bratislava furniture and accessory store.
Arca Capital CEE fund based in Prague acquired a share in the Light Park shopping complex on Račianska Street in Bratislava. A third share was purchased at the turn of September and October and it was included into the fund’s portfolio as its first real estate investment.
According to the Chairman of the Board of Arca Capital Slovakia Rastislav Velič, the share in Light Park was sold to the fund for approximately 70 percent of expert’s price estimate, which is approximately 7.3 million Euros, and it should reflect the market price.
The reason for this is that the store is not yet fully occupied. “The project is in the phase of filling the business premises, if it was already full, the price would be higher,” he explains. According to his statement, the occupancy is presently on the level of 80%.
Arca Capital CEE, closed-end investment fund, Inc. was founded by Arca in this year as a qualified investor fund for activities mainly in Czech and Slovak Republic, but also in Central and Eastern Europe. The fund abides by the Act on collective investment in Czech Republic, its advantages include 5% direct income tax rate.
In spring, the fund announced a non-public subscription for shares in the amount of 500 million CZK (20 million Euros), according to R. Velič 65 mil. CZK (approx. 2.6 million Euros) had been successfully subscribed. Subscription in the same amount was offered since October of this year. The fund plans to subscribe shares for 1.5 to 3.5 billion CZK in total.
R. Velič explains that the fund may subscribe for new shares during the entire life cycle, which is ten years, but Arca Capital CEE plans to subscribe only during the first four years.
Then it will be closed and after ten years by law the property will be liquidated, finances will be redistributed and it will cease to exist. Arca Capital CEE plans to buy mainly run-in investments, because start-up projects may be overly risky assets.
Another catch for the portfolio should be Czech company Ondrášovka (former Marila), which owns a mineral water plant. The part of this company, which operated packing houses in Příbram and smaller facilities, Arca sold in the meanwhile to Polish investors. Similarly as the Light Park before, Ondrášovka is currently a part of the portfolio of this Slovak investment group.
Light Park is a luxurious department store focused on furniture and furnishing accessories, which was opened near Gaštanovy hájik in the third Baratislava district in September of last year with about a year delay. Arca developed it in cooperation with Bratislava development firm Sollaris.
On its website it appraises its value at 6 million Euros. The department store provides almost 5000 m2 of saleable space on three floors, and this month it also opened an Italian restaurant “da Cono” with a terrace.
Arca deals mainly with industry and real estate investments, besides Light Park it sells land in Hubice near Bratislava together with Sollaris, and it prepares the Železná studienka project near Lamačska cesta. It also realizes large real estate investments in Ukraine.
Its fund, Arca Capital CEE expects annual valorisation of 12 to 15 percent, even more in cases of larger projects. Minimal deposit into the fund is one million Czech crowns (40 thousand Euros). The fund wants to keep its share in Light Park for two-three years, after fulfilment and valorisation it plans to find another investor for it.
