With nearly €2 billion* in fundraising, La Française Global REIM continues its strong growth in 2016
La Française Global REIM relied on its international platform to raise nearly €2 billion in 2016, thereby increasing its total real estate assets to more than €14.5 billion. International investors, a third of them from Asia, account for close to 19% of total assets under management. Within six years, La Française Global REIM assets under management have been multiplied by two and half.
1/ 2016 Fundraising
In the current environment of low interest rates and geopolitical uncertainty, in particular in the wake of BREXIT, and more recently the US presidential elections, real estate offers a diversification solution for investors seeking higher potential returns.
In accordance with its development strategy in France and abroad, La Française Global REIM's real estate expertise has been recognised by institutional investors, as reflected in the over €1.2 billion in funds raised.
In 2016, Asian customers stood out and accounted for nearly 25% of funds raised. Indeed, La Française Global REIM is able to provide diversified investment solutions by geographic area, strategy (Core/Core +, value added, opportunistic) and theme (offices, retail, managed property) to investors seeking to enter the main European markets through various vehicles (open-ended funds, dedicated funds, mandates and club deals):
This year was marked by the penetration of Asian markets and the acquisition of new blue-chip customers. Via its subsidiaries La Française Real Estate Partners and La Française Real Estate Partners International, La Française Global REIM currently manages nearly €1 billion in European property assets (United Kingdom, Germany and France) for Asian investors. Recent property acquisitions – So Ouest Tower in Levallois-Perret (92), and 115 rue Montmartre in Paris (2nd arrondissement) – perfectly illustrate our ability to source high-quality assets and to support the leading international investors with their search for assets in the European market.
The creation of local funds (tailored to local demand) or European thematic funds for which the sourcing and asset management are entrusted to La Française Real Estate Partners International teams based in Frankfurt, are solutions meeting the requirements of international investors.
In a market comprising retail investors with a strong appetite for this asset class, La Française REM continues its growth among this target, and has recorded an increase of more than 30% to achieve fundraising of nearly €800 million:
More than €650 million for its range of collective real estate investment vehicles, which has been substantially renewed, in particular with vehicles with an original positioning that invest in the major European markets for their investment potential and attractive tax framework.
With €130 million raised from unit-linked sales, the phenomenon that started in 2015 has continued in 2016.
€10 million for vineyard diversification products, a record year with three products marketed.
The year 2016 was marked by strong activity with nearly €2.3 billion in transactions, including more than €2 billion in investments and nearly €250 million in arbitrations. These acquisitions are spread as follows: 80% for office assets, 7% for retail premises, and 8% for other assets, in particular managed residences (facilities for seniors and tourism).
In France, La Française Global REIM, via its entities La Française REM and La Française Real Estate Partners, confirms its status as a leading real estate player with €1.6 billion in acquisitions, including the most emblematic ones: Carré Daumesnil in Paris (12th arrondissement), 91-93 rue du Faubourg St Antoine (11th arrondissement), the office building Le Thalie in Montpellier (34) and the seniors housing complex in the centre of Strasbourg.
Acquisitions in Europe are continuing at a strong pace, with nearly €350 million in new acquisitions. Accordingly, the Group's collective real estate investment vehicles have invested in Frankfurt, Stuttgart, Hamburg and Berlin and, for the first time, in Amsterdam.
"It is because of the synergies created with all the entities of La Française Global REIM that we are aligned with our 2016 development goals. The model for which the Group is renowned in our domestic market has been extended and adapted abroad. La Française knows no borders! Our extensive commercial presence in Asia, in particular with the opening of a representative office in Seoul early in the year, in addition to our offices in Singapore and Hong Kong, have enabled us to meet the requirements of Asian institutional investors in an effective and relevant way," said Marc Bertrand, President of La Française Real Estate Managers.
*forecast based on figures as at 30/11/2016; figures nonbinding and subject to change.
December 12, 2017
With the development of its European real estate platform, La Française Global REIM raised nearly €2.2 billion in 2017, bringing its total real estate assets under management to close to...
About La Française Group
For forty years, La Française has been developing core competencies in third party asset management.
La Française has a multi-expertise business model organized around four core activities: securities, real estate, investment solutions and direct financing. The group caters to institutional and private clients throughout the world.
With 639 professionals and offices in Paris, Frankfurt, Geneva, Hamburg, Stamford (CT, USA), Hong Kong, London, Luxembourg, Madrid, Milan, Seoul and Singapore, La Française manages €65.8bn in assets (as at 01/01/2019).
La Française is a forward-looking responsible investor and as such, incorporates tomorrow’s challenges into today’s investment strategy.
La Française is owned by Credit Mutuel Nord Europe (“CMNE”), a banking and insurance group present in Northern France and Belgium.