Built for resilience: Inside Accolade Industrial Fund’s decade of strategic growth

From its 2014 origins in the Czech Republic, Accolade Industrial Fund – established within the Accolade group – has become a dominant player in premium business infrastructures. The brainchild of Milan Kratina and Zdenek Soustal, the fund caters for the retail and e-commerce, manufacturing and logistics sectors – counting Amazon, DHL, FedEx and Siemens among its more than 100 tenants. Its state-of-the-art industrial parks extend beyond its own borders to include Poland, the Czech Republic, Slovakia, Spain, the Netherlands and Germany.

The fund’s existing 36-park portfolio – worth €1.92 billion as of the end of 2024 – generates annual rent of €110.7 million and covers over 2 million square metres. Along with its past five-year average annual share performance of 11.22 percent and last year’s asset acquisitions valued at €182 million, the numbers speak for themselves. Yet this consistent growth is just the beginning. Having cemented this strong foundation, the scene is set for future expansion – and Accolade Industrial Fund has Malta in its sights.

While mainland Europe has been its stronghold of property ownership, this island nation has served as its regulatory base since launch. Yet, despite the robust local investment infrastructure regulated by the Malta Financial Services Authority (MFSA), local investors have remained largely untapped – until now.

The fund is now opening its doors to a new market of investors on Maltese shores. In relation to this, Accolade will be hosting an event for Malta’s investment and financial community on 3rd April at Casino Maltese. Co-founder of Accolade Industrial Fund Milan Kratina, and board member (and Finco Trust Executive Chairman) Chris Casapinta talked to Malta CEOs about strategy, growth, industry evolution and the rationale behind prospective Maltese investment.

Milan Kratina

With strong performance indicators including 1.79 per cent vacancy rate and a 2024 share performance of 7.17 per cent, which financial metrics matter most to you when assessing the fund’s success?

For me, significant metrics – including financial – always come down to delivering long-term value and stability for our investors. While 2024’s EUR share performance of 7.17 per cent is strong, we’ve achieved annual returns above 10 per cent over longer periods, despite our communicated target of 7 per cent. Healthy cash flow is also crucial – ensuring continued sustainable growth of our rental income through strong leasing activity and dependable tenants. Ultimately, we’re committed to long-term reliability: delivering on our promises and maintaining the trust of our 3,000+ investors by achieving consistent, resilient performance every year.

How has the industrial property sector evolved and what shifts have shaped Accolade Industrial Fund’s strategy?

This sector’s evolution has been shaped by the rise of e-commerce, nearshoring and global supply chain disruptions. Companies have shifted from ‘just-in-time’ to ‘just-in-case’ logistics, increasing demand for larger warehouses and more strategic locations. Accolade Industrial Fund has responded by focusing on robust markets, developing flexible and energy-efficient spaces, and supporting the changing needs of tenants through long-term partnerships.

What are the primary drivers of Accolade Industrial Fund’s stability and growth?

Our stability and ongoing growth stem from strategic actions: ensuring tenant satisfaction for reliable rent collection, maintaining near-full occupancy through strong lease management, and diversifying across tenants, sectors, and markets to mitigate risks. Expert market knowledge and a thoughtful expansion strategy further strengthen our long-term endurance.

How does the fund safeguard against interest rate hikes, property market shifts and changing demand?

Accolade Industrial Fund is designed for resilience throughout market cycles. We manage rising interest rates and property value fluctuations with strong cash flow, conservative and varied bank financing (we’re currently working with 13 European lending institutions) and long-term leases with reliable tenants. Diversification across countries and sectors adds another layer of stability. By focusing on high-quality, sustainable assets in well-placed locations and staying responsive to tenant needs, we’re well-positioned to navigate changing conditions.

How has innovation in logistics and warehousing influenced the fund’s investment trajectory?

Logistics and warehousing innovations have markedly shaped our strategy. The European expansion of leading global players like Amazon has fuelled e-commerce, and the increasing relevance of industrial real estate during COVID reinforced demand. Advancements in robotics and automation further strengthened the sector, aligning with our focus on resilient, future-ready industrial assets.

How central is sustainable development and brownfield revitalisation in the fund’s business model?

Sustainability and energy efficiency have been core strategic priorities from the start. Redeveloped brownfield sites now account for a third of Accolade group’s portfolio, including some of the fund’s key assets. We approach sustainability through the lens of data and measurability. So our buildings are assessed via schemes such as BREEAM and DGNB certifications; we implement smart building management systems, advanced energy management, including our own photovoltaic energy programme, e-mobility infrastructure, and biodiversity initiatives according to local specificities. By integrating these features, we ensure long-term sustainability and efficiency across our industrial real estate portfolio.

Stumbling blocks are inevitable in business. What initial hurdles did you face and what was learned from overcoming them?

Introducing the fund in 2014, we were pioneers in this category of qualified investor fund structure in certain European jurisdictions, and many were skeptical. But we soon proved our strategy works, delivering strong returns and paving the way for other funds that followed. However, navigating different legal frameworks and intricacies across multiple countries remains a challenge, requiring constant adaptation and expertise. Regulatory alignment is improving, but differences still create complexities that must be carefully managed for continued growth and stability.

What makes Accolade Industrial Fund an attractive opportunity for investors compared to other European investment options?

Accolade Industrial Fund offers investors a unique opportunity for portfolio diversification through high-quality industrial real estate and economic segments. This asset class has proven to be one of the most stable, even during recent economic shifts. The ongoing growth of e-commerce, the rise of nearshoring and friendshoring, and increased demand for larger stock capacities continue to drive strong performance in the sector across Europe. Investing in the fund means gaining exposure to a resilient and future-proof asset class and investment opportunity with long-term growth potential.

What led you to choose Malta as the fund’s regulatory base and what have been the benefits?

During the fund’s formation, we needed a steady and reliable regulatory environment; the Czech Republic’s political and regulatory landscape was unpredictable at the time so we looked elsewhere. As a major financial hub, Luxembourg was an obvious choice (even producing our auditor and administrator). However, we quickly realised Malta offered the same high level of financial services at competitive and attractive prices – particularly important factors in the early stages of our journey. Choosing Malta turned out to be the right decision; its tax and regulatory framework has remained stable; crucial for long-term investment planning. Furthermore, the MFSA’s cooperation has been excellent. Their proactive and progressive approach creates a smoother, more efficient regulatory process than certain EU counterparts – support that has been significant in the fund’s continued success

What is the rationale behind seeking Maltese investment and how do you see Malta fitting into the fund’s broader strategy?

Accolade Industrial Fund has been based in Malta from day one, so it makes perfect sense to offer Malta’s investors the opportunity to participate in its success. We believe in what we’ve built and we want local investors to benefit from our industrial parks’ strong performance and rising tenant base. With operations presently in six countries and clear European ambitions, expanding our investor base in Malta is a natural step. It strengthens our presence in key financial markets and aligns with our vision for sustainable European growth.

How do you address possible concerns among Malta’s investors about geopolitical tensions, trade disruptions and macroeconomic instability?

Industrial real estate remains one of the most dependable asset classes; businesses will always need logistics and production space. Europe is realising the need for greater economic self-sufficiency, driving investment in nearshoring, infrastructure, and larger stock capacities. These shifts are directly aligned with the fund’s strategy, concentrating our focus on future-proof assets in high-demand locations and supporting continued growth.

Do you have any personal or professional impressions of Malta you’d care to share?

Malta has impressed me as a growing financial hub with a strong professional community. Our dealings with the local team and authorities have been excellent – they are progressive, knowledgeable, and truly supportive. It’s inspiring to see Malta’s financial sector evolving and I’m glad Accolade Industrial Fund is part of that journey.

Chris Casapinta

How has the industrial property sector evolved and what shifts have shaped Accolade Industrial Fund’s strategy?

Industrial real estate’s transformation started before 2014 with the type of properties dominating the industrial sector. Many modern businesses no longer need full-scale manufacturing plants as they now focus on raw materials acquisition for product packaging and redistribution. Online sellers have played an integral role. Rather than shipping products from China, companies like Amazon maintain item storage and distribution centres in strategically closer European locations, enabling more efficient delivery. So there’s been a shift from basic storage spaces to highly sophisticated facilities equipped with cutting-edge technology. As the logistics industry relies on effective container transportation, location choices are often tied to country border proximity. So our strategy includes following highway developments and optimum connective routes. Also, the increasing importance of green building standards is literally reshaping the sector. Our prioritisation of ESG reflects the fund’s response to this.

What steps formed the roadmap to achieving success?

First, the founders had a clear, single-minded vision from the start about which industrial real estate niche to focus on: logistics and warehousing. Their understanding of market opportunity and e-commerce’s influence on this sector meant Accolade Industrial Fund was positioned early on to capitalise on the increasing demand for premium industrial infrastructure. Secondly, ensuring a high degree of specialisation across its facilities sets it apart from other investors in this domain. Third, from the outset, the founders sought and knew when to listen to expert professional advice.

How has Accolade Industrial Fund attracted its present investor base?

Crucially, both founders adopt a personal approach to investor relationships, engaging directly with investors, fostering loyalty and trust – a major differentiator in attracting long-term capital and enabling expansion.

What role has industry collaboration played in the fund’s progress and how is this managed?

Close collaboration with top-tier industry partners and stakeholders has been essential. International service providers including financial institutions, logistics companies, valuers etc have been instrumental in the fund achieving best-in-class operations.

As you embark on your next phase, what are the fund’s main priorities and how do you plan to navigate future challenges?

The founders’ priorities are clear: to remain the leading owners of logistics and warehousing real estate in Europe by continuing European expansion which will help maintain strong fund performance. Challenges-wise, this goal naturally requires widening the investor base. It’s a matter of finding the right investments and best locations and retaining the same level of strategic foresight, and more importantly, keeping shareholders’ value a priority.

Accolade Industrial Fund stands at the forefront of Europe’s industrial real estate landscape, a fund shaped by innovation, resilience, and long-term vision. With a proven track record, growing tenant base and commitment to sustainable development, it presents a compelling opportunity for investors seeking stability and future-focused growth. To learn more about the fund, visit https://accoladeindustrialfund.mt/. For those who are interested in attending the event on 3rd April at Casino Maltese, contact RuthSchembri@fincotrust.com.