05 Dec 2022

DELTA legal advises INVESTIKA Real Estate Fund on CZK 1 billion acquisition in Poland

Legal assistance provided by MSI's Czech law firm member with major cross-border acquisition.

DELTA legal was involved in yet another cross-border acquisition by INVESTIKA Real Estate Fund (IRF), advising it on the acquisition of a manufacturing and logistics centre near Wroclaw, Poland. The area has long been leased to the world’s leading manufacturer of car seats – Adient, which operates in four other locations in Poland alone. The total value of the transaction reached almost CZK 1 billion.

The team at DELTA legal was comprised of Pavel Fára, Libor Vacek, Veronika Chrobok, Henrieta Hovanová and Jiří Absolon and was responsible for the Czech part of the transaction, including the legal audit of the target company. With regards to the structure of the transaction, DELTA legal used its extensive experience in cross-border advisory services. In the past, DELTA legal was involved in IRF’s entry into the Polish market and in a number of other cross-border transactions.

The acquired premises are in a desirable location and are fully occupied under a long-term lease agreement. In addition, the premises are characterized by the high level of technology used, reflecting a past investment of more than EUR 100 million.

The Czech IRF executed the Polish transaction together with the Luxembourg private equity company BUD HOLDINGS; the seller was a Belgian investment fund. The transaction was accompanied throughout by the need for intensive multi-jurisdiction input and coordination at the Czech level.

We are constantly on the lookout for new opportunities in the Czech Republic and abroad,” said Václav Kovář, Portfolio Manager of INVESTIKA Real Estate Fund. “At the same time, the Polish market is now among the most interesting, not only in terms of availability of real estate and its yield, but also in terms of the growth potential of the Polish economy. Moreover, this particular transaction contributed to a substantial increase of WAULT (weighted average unexpired lease term) in our fund to five and a half years. The DELTA legal team was a reliable partner in this acquisition, as it has been repeatedly in other cross-border transactions.

IRF is the biggest non-bank retail real estate fund on the Czech and Slovak market. It focuses on investing in commercial real estate with reliable long-term tenants across Europe. The fund’s portfolio, which has a target yield of 4-6% per annum, includes more than three dozen properties – for example, the Galerie Butovice shopping centre in Prague, the exclusive MOLO Lipno Prague development project, the Tensor office building in Gdynia, Poland or lands in Istria, Croatia for tourist development.

The volume of assets under IRF management is currently approaching CZK 14 billion and the number of investors is close to 57,500. More information about INVESTIKA and its funds can be found at https://moje.investika.cz/en.

DELTA legal has long focused on transactional work in the Czech Republic, Poland and Slovakia. Thanks to its connection to international networks, DELTA legal provides legal advice worldwide and can also handle cross-border aspects. Recently, the firm has overseen transactions involving not only major logistics, office and retail properties, but also several listed castles. In addition, DELTA legal offers comprehensive legal advice in all commercial areas. Feel free to contact us for more information.