Pan-European funds the way forward for property
La Française AM head of Real Estate Research Antonin Prade, and Premier portfolio manager Alex Ross both point to property’s revival as an asset class.
Antonin Prade (pictured), head of Real Estate Research at La Française AM is among those looking at pan-European opportunities in the asset class, having taken the view that the sector is at the end of a cycle in France.
After a period of recession, when investing in real estate there was not very fashionable, the sector is now witnessing a return of investors from Germany, the Middle East, and Asia and from the domestic side, where the market remains liquid and steady, Prade says.
“We are of course feeling the pressure of the economic context, take-up on the Greater Paris office market is 20% down compared with last year, but the market is very resilient in Paris, where investors are able to keep both values and revenue steady. The same cannot be said for secondary properties, which are in the best locations close to transport networks, but do not offer the same quality in terms of conditions,” Prade says.
La Française recently entered a partnership with Forum Partners Investment Management. Prade explains that it combines Forum’s global real estate, private equity, debt and securities capabilities with La Française’s leadership in French direct real estate and senior debt.
In support of this partnership, CMNE and La Française will allocate over $600m in capital across each of Forum’s principal investment strategies, beginning with over $200m to Forum’s European debt platform, including mezzanine and senior debt.
“We have three main objectives with this new project. The first is a pan-European fund investing in the property senior debt market; the second is the launch of a global Reit; finally, we are aiming at creating a platform for direct investment with a pan-European coverage,” Prade adds.