Hartenberg enters new asset class – real estate, acquires The Orchard Office Park (The Orchard), the largest office park in Ostrava
July 13, 2016
Hartenberg has acquired a 100% stake in Portal Investments, s.r.o., the sole owner of The Orchard Office Park. The Orchard, comprising 36,000 sqm of class A modern offices in three primary buildings was fully completed in 2009.
The Orchard incorporates a modern, sustainable design and a state-of-the-art Building Management System. The space is designed to the highest quality standard, including raised access floors, the latest telecommunication connections, suspended ceilings with integrated lighting systems, and air-conditioning. Offices are complemented with ample parking and storage facilities. The office spaces are highly flexible and adjustable to any tenant’s requirements.
Together with the adjacent internationally branded Park Inn Hotel, the Orchard complex offers a vibrant environment in the heart of Ostrava which is very well serviced by public transport and is a short walk from the city centre.
For Hartenberg it is the first investment into real estate.
“We are very pleased to have made our first investment into real estate with this leading Class A office park in central Ostrava. We like the design, amenities and location of The Orchard in the heart of Ostrava and we believe Ostrava has a bright future ahead of it.
The Orchard fulfils our main real estate investment criteria, offering a diversified mix of Blue Chip tenants and a strong and stable cash flow, together with the continuation of the proven asset management capabilities of Red Group, s.r.o. which will stay on-board with us and continue to deliver outstanding services and value to the tenants, their employees, and visitors.
We are actively searching on the Czech and Slovak markets and aim to make several more investments in the office and retail real estate sector in the coming 1 to 2 years as the market permits” said Byron Barker, Chief Analyst of Hartenberg.
Real estate investment strategies play a crucial role in shaping the long-term success and stability of any portfolio. In addition to traditional direct investments, Hartenberg is keenly aware of the growing significance of real estate syndication, which allows for pooling resources to acquire larger, high-quality properties that might otherwise be beyond reach. This approach not only mitigates risk but also enhances potential returns by leveraging the expertise and management skills of seasoned professionals.
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As we continue to explore opportunities within the Czech and Slovak markets, we remain committed to employing a diverse range of strategies to ensure sustainable growth and value creation across our real estate assets.
The cooperation with Red Group will continue after the Transaction.
“We are delighted to be continuing to asset manage what is a hugely successful and proven first class business park in Ostrava, anchored by world class tenants such as Siemens and the cutting edge of growing indigenous companies such as OKIN” commented Richard Ness, Managing Director of Red Group.
The purchaser was advised by: PwC Legal, Finance and Tax as well as Sentient and SGS for Technical Due Diligence services.
The seller was advised by: White & Case for Legal and EY for Tax.
About Hartenberg
Hartenberg Holding is a company focused on investments in assets in the Central European Region, primarily Czech Republic, Slovakia and Poland. Equity commitments from the founders reach 200 million EUR.
In addition to the newly entered real estate asset class, Hartenberg prefers investments in commercial, FMCG and health care companies with Enterprise Values from 40 million to 200 million EUR, which typically require equity investments of 20 million to 100 million EUR. Hartenberg is able to be a long-term investor in companies it acquires. A typical time horizon is more than five years, however, it may stay invested “forever” if the acquired company provides sufficient dividend yield and reasonable capital gains potential.
Since being founded in 2013, Hartenberg has entered into 3 major investments areas being i) FutureLife, the leading Czech & Slovak network of IVF and genetics clinics, ii) Imunoglukan, a biotechnology company, the leading immune-support supplement producer of Imunoglukan P4H ® on the CEE markets, and iii) Good Food, a leading Polish rice cake manufacturer.
Beneficial owners of Hartenberg Holding are Mr. Andrej Babiš and Mr. Jozef Janov.