Investment policy

Fund / Investment policy

The vision of the Fund Management is to position Arcona Property Fund as the benchmark listed property vehicle for the CEE region. The Fund offers both institutional and private investors the opportunity of managed exposure to these fast-developing markets, with an investment strategy targeting capital preservation and a high dividend yield.

The Fund will not undertake developments nor concentrate exclusively on one market sector - thus distinguishing itself from other listed vehicles with higher risk profiles active in the region.

The long-term target Fund size is € 500 million, with between 30 and 50 assets. Within this total the Fund plans allocations as follows: Poland 40% ( € 200 million), Czech Republic 20% ( € 100 million), Slovakia 10% ( € 50 million) and other countries in the region 30% ( € 150 million).

Acquisition strategy

The acquisition strategy will target out-of-town retail parks, supermarkets, regional office properties and multi-leased logistic centres across Central Europe, with individual lot sizes in the range € 5 million to € 15 million.

The dividend policy for Arcona Property Fund is to pay at least 35% of the annual direct result as a dividend. The target is, within a three to five year time frame from end 2016, to increase annual dividend payments to a level of 8% of the prevailing share price.

Arcona Property Fund counts the following substantial companies amongst its tenants: