Fait’s real estate fund on the hunt. He bought five industrial sites in Poland from KKCG
The real estate fund Jet Industrial Lease, founded last year and belongs to the business empire of the Brno billionaire Igor Fait, is attributing a large acquisition abroad. He bought five industrial sites in the western and central part of Poland from Vestinlog from the KKCG group, one of the richest Czechs, Karel Komárek.
All five Polish sites with a total area of more than 174 thousand square meters have their tenants from the ranks of large suppliers to the automotive industry. The Brno real estate fund thus acquires land and halls inhabited by large corporations such as Benteler, Kongsberg Automotive or Auto Acoustics.
“It is a portfolio of modern real estate with established tenants, long-term contracts and a very interesting return. We also see an interesting potential for further development there, “added Pavel Drabina, Executive Director of the Jet Industrial Lease Fund, about the acquisition. Although neither party commented on the price of the transaction, according to market analysts, sales are in the order of many tens of millions of euros.
The Polish transaction with the KKCG groups is the fund’s second completed acquisition, with the Brno team working on another eight. Three more projects worth around 40 million euros are already in the final stages of negotiation, just before signing.
The Polish industrial complex, built five and six years ago, was bought by Vestinlog in 2018, while the investment has been managed by the KKCG real estate division.
“From the beginning of the project, we planned to leave at the appropriate time, at a time when there was an interesting appreciation of our original investment. Our business plans intersected with the interests of Jet Industrial Lease and we managed to conclude a mutually beneficial transaction, “commented Petr Pujman, CEO of KKCG Real Estate Group.
In total, there are over 54,000 square meters of leasable space in five Polish sites, which is fully occupied by tenants, and the transaction also includes the takeover of the expansion at the Kongsberg Automotive site in central Poland. That capacity of industrial premises increases by another 7,000 square meters.
In addition, according to the head of the Jet Industrial Lease fund, the individual plots offer the potential for further development. “A concrete idea of the further development of the area will result from the requirements of existing tenants. They have already indicated something to us, “says Drabina, adding that further construction could cover an area of ten to fifteen thousand square meters.
According to Drabina, the speed of permitting processes related to construction proceedings in Poland is also a great advantage. “There it is possible to start, but also to finish within one year,” he adds.
The real estate vehicle Jet Industrial Lease was added to the portfolio of Igor Fait’s Brno business a year ago. “We saw a great opportunity in the industrial real estate market and we couldn’t miss it,” explains Fait.
His strategy is different from market leaders such as CTP or Accolade. “Keep the business, but you’re selling me a factory hall” – Fait is bypassing the industrial motto in Central Europe and explains to them that if they sell them a roof and a chimney head on, they can continue to sublet and still have money to investment expansion.
“Core then earns them a lot more than killing its barracks business,” Fait explains in a big interview in the December issue of Forbes. How do industrialists hear about it? The German and Polish ones say yes, in the Czech Republic it is slow. Which may change as Europe becomes more and more trapped in high inflation and Fait winds up the coming crisis.