In our most recent commentary on the direction of Accolade Industrial Fund, we settled on the phrase “cautious optimism” to describe our outlook for the year. Developments so far suggest that was the right call. Against the backdrop of ongoing global geopolitical uncertainty, unpredictability has become the new normal and that applies to the economy, manufacturing and supply chains alike. At the same time, it is precisely in this context that we see how the foundations on which we built the fund twelve years ago give it not only the resilience to weather turbulent times, but the continued capacity to deliver value to investors.
We view the Q1 results favourably. The CZK share class returned 2.64%; the EUR class returned 2.10%. For the first time in several quarters, currency movements worked in favour of the CZK class: the Czech koruna weakened modestly against the euro.
The first quarter also brought a milestone worth your attention: portfolio value crossed EUR 2.25 billion. Year-on-year growth of more than 16% reflects our long-term strategy of prioritising the quality of our industrial parks alongside disciplined expansion and acquisition in high-potential regions.
Diversification across regions, aligned with structural megatrends
The fund’s most recent additions illustrate this well. Park České Budějovice is an entirely new location for us, and it has already attracted three new tenants: Hauser, a European supplier of refrigeration technology; Taconova, a manufacturer of heating and sanitary system solutions; and construction group HOCHTIEF. Nearly 20,000 square metres, three distinct sectors, one site.
In Spain, the completion of the second building at Accolade Funds Park Vitoria added a further 13,000 square metres. Joining the existing tenant base is Cegasa, an energy solutions provider and global leader in the production of zinc-air batteries.
Both transactions reflect the structural trends shaping industrial real estate across the continent: manufacturing moving closer to end customers, growing demand for energy infrastructure and robust logistics capacity, and a clear preference among tenants in key sectors for modern, flexible, long-term sustainable space. I am aware this is not the first time I have emphasised the importance of diversification. But it remains central to our approach. A well-balanced portfolio provides a natural buffer against any single sector or market downturn having a disproportionate impact on overall fund performance.
* Weighted average unexpired lease term in the years
** Loan to value
Trust as a first principle
Beyond the usual quarterly summary, I want to address a broader topic that has gained prominence recently. Media coverage and social media commentary have increasingly focused on how real estate funds in the domestic market operate, how they are financed, their liquidity position, and the level of transparency they offer investors. I consider this a legitimate and entirely appropriate part of market discourse — particularly in a market that has seen a significant number of new entrants in a short space of time. Investors are entitled to full access to all material information about where their capital is deployed and how it is managed. Openness is something we take seriously at Accolade Industrial Fund.
The fund is built on conservative principles. Financing is arranged with long-standing banking partners — leading institutions in the European market. Valuations are conducted quarterly by independent, reputable third parties. The portfolio carries no development risk. Our objective is stable, highly predictable returns. Since our inception in 2014, we have consistently shared with you how the fund is evolving, what factors are shaping it, how it is structured and how it is managed. If you have any questions — on any of the above — do not hesitate to contact us directly. It matters to us that there is no room for speculation or uncertainty between us.
Upcoming additions to the Accolade Funds portfolio
Finally, I would like to share one further piece of news — briefly for now. Under the Accolade Funds brand, we are in the final stages of preparing two new investment opportunities, which we will announce shortly. The first will again be available to qualified investors. In parallel, we are developing a product designed to open access to European industrial real estate for a wider investor audience. When we are ready, you will be among the first to hear about it.
