The messy collapse of Arca Investments finally broke the back of Rudolf Vřešťál’s investment group Redside, including its fund, Nova Real Estate. “Unfortunately, it’s time to admit openly that the shadow cast by the fall of the Arca group had a big impact on Redside’s reputation,” Vřešťál wrote in an open letter to his investors. “We no longer have a chance or even the ambition to develop our funds and business and to try to regain the full confidence of investors.” He said it was clear to him that investors now wanted their money back.
As of July, the Nova Real Estate’s portfolio included 19 properties (5 in Prague), with 90 tenants and 98% occupancy. From a sector point of view, this broke down to 37,000 sqm of offices, 72,000 sqm of retail and 120,000 sqm of industrial real estate. It lasted listed the total value of its assets to be worth €337 million, with an NAV of €121.9 million. Redside also ran an energy fund that operates solar farms around Central Europe.
Redside came under pressure earlier this year when creditors attempted to have it placed in insolvency, but the courts found the claim to be baseless. E15 claims this was led in part by Arca’s founder Pavol Krupa, as Arca is believed to have held a roughly 9.5% stake in Redside. The newspaper says that the documentation submitted during the insolvency procedure suggested that Arca was far more closely connected with Redside than the company ever admitted. Krupa allegedly claims in one of the insolvency documents to have secretly controlled the company.
Just how attractive is the Nova Real Estate real estate portfolio? Here’s the link you need to decide for yourself.
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