Redside has successfully closed the largest industrial transaction of 2018 in Slovakia. The company has acquired Trencin Industrial Park for c.€90m. With this deal, the company enters the Slovak industrial real estate market. The Trencin Industrial Park was developed for AU Optronics in 2010 and comprises 120,000m² of prime industrial premises. Sitting on the D1 highway in Western Slovakia, the European hub of automotive production, the park is well cross-connected via European highway network. It is currently leased to a portfolio of premium automotive and electronics tenants except for the area used by itself.
Rudolf Vrestal, CFO and Chairman of the Board at Redside: "After an extremely successful built-up of Subfund I within NOVA Real Estate Fund structure, managed by our company, Trencin is our first acquisition on the Slovak market. For Redside, this is also a first step in the creation of a new Subfund II, focused on CEE industrial and logistics properties. We are pleased to become an owner of such a unique and technologically advanced property as Trencin Industrial Park. This is a great flagship property of our new industrial subfund portfolio.”
"Currently, the existing Subfund I provides the investors with a chance to participate in a well-established and stable investment vehicle with It is currently leased to a portfolio of premium automotive and electronics tenants except for the area used by itself. It is currently leased to a portfolio of premium automotive and electronics tenants except for the area used by itself. €250m of AUM, distributed equally between grade “A” office buildings in Prague and regional retail shops in the Czech Republic, generating over 7 % p.a. net returns to its investors. The structure of the subfund allows for business-sector as well as geographic diversification, with long-term secured rental inflow in mind. Building on these fundaments, we launched a new subfund, focused on yet another business sector, so as to broaden the palette of investment products we want to offer to our investors,” added Tomas Berka, Real Estate Fund Manager at Redside.
Zuzana Kolarova, Managing Director at ASB Slovakia (part of ASB Group): "We are happy to assist investment company Redside in this unique transaction as financial and tax advisor. Considering the size and the importance of a deal, the project has required not only a high level of technical expertise during due diligence or deep knowledge of real estate market but also the dedication of our team and passion for what we do.”
The seller AU Optronics Slovakia was represented by the Investment team at JLL Slovakia who facilitated the transaction. “Trencin Industrial Park received an extremely positive reception from the market coming from a broad variety of investors, local and international. The structured sale process resulted in the highest number of bidding parties that Slovak real estate market has so far experienced. The disposal will have a dramatic impact on industrial yield levels in Slovakia,“ said Rudolf Nemec, Capital Markets at JLL.
