S’pore-based Euro Asia Asset Management partners Czech ZDR to explore European grocery retail parks

SINGAPORE - Singapore-based Euro Asia Asset Management has inked a strategic partnership with Czech venture fund specialist ZDR Investments to explore investment opportunities in European grocery retail parks.

The properties are an increasingly popular asset class among Asian investors, it said.

The collaboration aims to unlock the untapped potential within the sector, with a particular focus on Central and Eastern Europe. 

To facilitate this initiative, Euro Asia recently launched a Singapore-based variable capital company (VCC), ZDR Investments SG VCC, which will house various venture funds to invest in European grocery parks.

The new VCC, which is licensed by the Monetary Authority of Singapore (MAS), initiated its inaugural share subscription in September 2023.

It caters exclusively to accredited investors and institutions with a minimum investment requirement of €100,000 (S$145,400).

It aims to raise €20 million to €30 million initially, with a target close of €100 million.

The VCC framework, championed by MAS, positions Singapore as a premier pan-Asian fund management and domiciliation hub.

The VCC structure offers investors confidentiality, tax incentives, and seamless entry and exit options.

It also caters to clients who need family-office services, but do not have enough assets to set up a single family office. Clients may enjoy cost savings through shared resources and expenses.

Through the VCC, investors in Singapore and across Asia will also get access to ZDR Investments SICAV, which is the company’s master fund, which specialises in investing in grocery retail park properties primarily in Eastern European countries. 

Managed by ZDR Investments and licensed by the Czech National Bank as an alternative investment fund or AIF, the ZDR Investments SICAV has posted an average annual return of 10.2 per cent since its inception in 2018.

With investments in 39 properties and a total market value of €428 million, it received the prestigious Top 100 award from the Prague-based Comenius Institute in 2020 and 2021.

Retail park developments across Europe have undergone a huge evolution in recent years. Modern retail parks across the region now incorporate leisure and dining options to augment their overall appeal.

In 2021, retail parks and retail warehouses constituted over 33 per cent of the total retail investment activity in Europe, surpassing the five-year average of 18 per cent, said ZDR Investments, citing market studies.

In contrast to more saturated Western European markets, the Central and Eastern Europe region’s retail park sector is relatively nascent, with roughly 45 per cent of total parks being less than a decade old, according to Cushman & WakeField.

Despite substantial development, there remains an undersupply of such spaces, especially in smaller towns and cities, it added.

Mr Karol Piovarcsy, Singapore-based chief executive officer of Euro Asia Asset Management, said the collaboration with ZDR Investments enables sophisticated accredited investors in South-east Asia to participate in European investment opportunities. 

“This partnership leverages their collective expertise, knowledge and capital to assist clients in diversifying their geographical and sector portfolios between European and Asian financial markets,” he said.