The real estate fund UAB Eika Real Estate Fund (EREF), managed by the fund management company UAB Eika Asset Management (EAM), has invested in the Class A business center Business Centrum Tesla2(BCT2) in Košice, the second largest city in Slovakia. EREF has acquired a 50% stake in Kosice HoldCo sro, which owns the business center, from the European City Estates (ECE) group. The transaction value is EUR 35 million.
Slovakia and the city of Košice are the economic center of attraction between as many as four European countries – Poland, the Czech Republic, Austria and Hungary, world-class brands are located in this region, and the city of Košice is one of the most attractive locations in the region for the development of their service centers. There is a highly developed ecosystem of IT companies and specialists here, and there are as many as 6 universities. According to EAM CEO Viktorija Orkinė, the decision to expand EREF’s investment portfolio abroad and specifically to this Central European region was made due to the strong partner ECE, who knows the market and has very favorable bank financing conditions.
“Entering a new market usually takes several years, as detailed analysis, familiarization with the country or region and its specifics are required. Our partner ECE, who has been working in this market for several years, shortened this path for us and added security and courage. In addition, the bank financing conditions in the region are extremely attractive, which allows us to achieve the desired returns for our investors. Although our priority is still the Baltic countries, I believe that there may be more investments in Slovakia or other Central European countries – it is not for nothing that when creating Eika Real Estate Fund, we strategically planned that our territory of operation would be Central and Eastern Europe,” says V. Orkinė.
The BCT2 business center, built at the end of 2017, has a strategically attractive location, as it is located between the old town of Košice and the central shopping district. The seven-story business center has an area of over 15 thousand sq. m. and is Leed Gold certified. Among the main tenants are international IT and insurance companies: T–Systems, Diebold Nixdorf, Colonnade, Dovera.
“ECE had the opportunity to sell the BCT2 business center to institutional investors, but since this project is important to me personally, this joint venture transaction, where EREF becomes a 50% partner in the project, is much more acceptable. I already have excellent experience with both EAM and the EIKA group, so I appreciate this new and close cooperation between two complementary partners,” says Dejan Mansfeld-Rupnik, Head of ECE.
Tesla Business Center2” business center is the seventh EREF investment. In addition to it, EREF’s investment portfolio includes the “Highway” business center and “Audi” and “Volkswagen” car dealerships in Vilnius, the “DHL Lietuva” terminal in the territory of Vilnius Airport, the “BENU” pharmacy manager’s “Tamro” logistics center in the Kaunas FEZ, and the “ViaCon Baltic” production base in the Kaunas district.
EREF is the second real estate fund managed by EAM, investing in commercial properties. EREF invests in classic commercial properties – office buildings, shopping centers and logistics or light industrial facilities in the CEE region. The fund is intended for informed investors, and together with external investors, the capital of the EIKA group is also invested.