An Indonesian investment fund has provided the Prague-based company Earth Capital with a comprehensive acquisition mandate. This encompasses real estate investments with a total value of approximately EUR 200 million. The fund's investment strategy is oriented towards a long-term perspective, focusing on a 'buy-and-hold' approach. This approach underscores the intention to establish stable and sustainable values in the portfolio, rather than pursuing short-term speculation. The selection of target properties is based on precise criteria designed to ensure long-term value preservation and income stability.
The current focus of the acquisition strategy lies on several primary property types. These include residential properties and complete residential complexes, which promise stable income potential. Additionally, logistics properties, as well as supermarkets and food markets, are being considered. This diversification reflects the endeavour to build a balanced portfolio with varying risk profiles and income sources, in order to adequately respond to market fluctuations.
Specific search criteria for acquisitions
In the residential property sector, the search is concentrated on Germany. Here, cities and regions with a population of at least 100,000 are particularly relevant. The investment activity also extends to neighbouring markets, which include Switzerland, Austria, Poland, and the Czech Republic. These regional preferences are based on an analysis of demographic development, as well as the economic stability and attractiveness of the mentioned countries.
For logistics properties, specific requirements are set, aimed at sustainable use and value retention. Properties are sought in locations with good transport links, connected to important transport hubs. Sustained demand and a long-term perspective for the respective logistics hub are essential. For essential retail properties, i.e., supermarkets and food markets, established properties in towns and communities with a catchment area of at least 20,000 inhabitants are in focus. These criteria ensure solid customer frequency and thus stable rental income.
The mandate given to Earth Capital by the Indonesian investment fund signals continued interest from international capital providers in the European real estate market. Germany and its neighbouring markets, in particular, offer attractive investment opportunities for investors pursuing a long-term and value-oriented strategy. For properties that meet the stated requirements, a swift review and transaction processing are envisaged, which underlines the seriousness and efficiency of the acquisition process.
