Friday, 31 October 2025
IAD Investments, Slovakia’s oldest asset management company and one of the region’s most active real estate fund managers, has continued to strengthen its cross-border portfolio throughout 2025. The firm’s strategy this year reflects a balanced approach — combining stable income management in Slovakia, Poland, Hungary, Croatia and the Czech Republic with regional diversification into logistics and an expanding development pipeline supported by its Prvý realitný fond (PRF) and IAD Investment Real Estate Fund (IAD IRF).
In an interview with CIJ.World, Vladimír Bolek, Member of the Board and Real Estate Fund Portfolio Manager, shared how the company is reshaping its portfolio, identifying opportunities in a changing market, and preparing for the next investment cycle heading into 2026.
“IAD Investments has established itself as one of Slovakia’s most active real estate fund managers, with growing exposure across Central Europe,” said Bolek. “We made a significant strategic decision to increase the share of development projects in our portfolios, especially in Croatia and Slovakia. In the past, we were primarily a buyer of income-producing assets. Over time, we gained enough market experience and confidence to move into development — sometimes in joint ventures with established partners, and sometimes independently.”
He added that this shift represented a turning point for the company. “We also created new funds for professional investors, which have a different structure and allow us to pursue development opportunities more effectively. After two decades of building a track record in core assets, it’s time to show investors that we can also create value through development and innovative projects.”
In early 2024, Prvý realitný fond completed its first acquisition in Croatia, securing a 9.7-hectare site in Sveta Helena, near Zagreb, for the development of a new logistics park. The construction works already begun and project should be completed in 2026.
This move marked IAD’s formal expansion into an under-supplied logistics corridor benefiting from new transport infrastructure around Rijeka and along the north–south Trans-European route.
“There’s definitely cautious optimism, but also selectivity,” said Bolek. “We still see strong long-term potential in the logistics sector. Europe is rethinking its industrial and logistics base, and this transformation will continue for years. Croatia is a good example of an undervalued market — similar in size and population to Slovakia, yet with only about 1.2 million sq m of logistics space compared to Slovakia’s 4.5 million. With new corridors opening, Croatia is becoming an important link in European trade. That’s why we’ve entered this market early.”
Across Slovakia and the Czech Republic, the IAD Investment Real Estate Fund (IAD IRF) continues to anchor the firm’s portfolio with a focus on office and retail assets.
The fund manages over 200 lease contracts with built-in indexation mechanisms, maintaining stable rental income and above-average occupancy levels. Notable holdings include prime offices in Bratislava, such as Twin City C, where a new 10-year lease for 7,200 m² was signed with Kooperativa poisťovňa (Vienna Insurance Group) in May 2025. This deal pushed the building’s occupancy above 95 percent by year-end.
“We continue to see opportunities in residential assets across Slovakia, Poland, and the Czech Republic,” Bolek added. “Even with demographic shifts, demand remains strong compared to Western Europe. The main challenge lies in legal and planning complexity, which we are carefully navigating.”
IAD maintains a presence in Poland’s office market through its earlier acquisition of the D48 office building in Warsaw, purchased from Penta Real Estate. The deal, originally closed in 2020, remains a reference point for IAD’s cross-border investment capacity and continues to be cited in regional transaction analyses (CEE Legal Matters).
Reflecting on market performance, Bolek observed: “Offices remain part of our portfolio, but demand is clearly lower everywhere — from Poland to Hungary. The market is now rewarding quality. Buildings in strong locations, with good transport links and modern amenities, continue to perform well, while others are struggling. The gap between prime and secondary offices is widening fast.”
He noted that logistics continues to perform well, though at a more measured pace. “The surprise has been retail. Shopping centres recovered faster than expected. Within a year of the downturn, footfall and sales returned strongly. Retailers adapted — many now combine physical stores with e-commerce collection points, creating more interactive, service-oriented spaces.”
During 2025, IAD streamlined its fund structure by announcing the merger of its Private Investment Fund 2 into its Private Investment Fund (November 2025), following regulatory approval obtained in August. The company also published its half-year 2025 management reports, confirming continued fund growth and compliance with EU ESG standards.
On sustainability, Bolek noted: “ESG is a complex issue. I fully support responsible ownership — maintaining assets properly, managing consumption, and ensuring good working conditions should be standard practice. But sometimes the ESG framework adds unnecessary bureaucracy rather than value.
“That said, as a regulated fund, we fully comply with EU ESG legislation. We’ve integrated it into our fund rules and reporting. My personal view is that while energy performance standards are valuable, we shouldn’t lose sight of common sense and good management habits. Sustainability works best when it’s practical, not just procedural.”
Discussing cross-border capital flows, Bolek commented: “Slovak investors are increasingly looking abroad. The domestic market is relatively small, and diversification is becoming essential. The Czech Republic remains the first choice, followed by Poland and Hungary. This year we’ve seen even more Slovak capital moving across borders — partly due to market size, but also as a response to the domestic political climate.
“If you can buy a comparable asset at similar pricing in multiple countries, investors today prefer to diversify. It’s a logical, risk-balanced approach.”
IAD Investments’ activities in 2025 illustrate how a Slovak fund manager is evolving from a traditional income-focused investor into a regionally diversified, development-driven platform. The company’s logistics entry in Croatia, its core income stability in Slovakia, Poland, Hungary and Czechia, and its ESG-compliant management framework all underscore a pragmatic strategy built on experience and regional partnerships.
As Bolek summed up, “Good location, responsible asset management and long-term tenant relationships remain the key differentiators.”
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