European investment manager Primevest Capital Partners has expanded its presence in the private investor market and lifted its assets under management to €2.8 bn through the acquisition of Eindhoven-headquartered Holland Immo Group.
AIFM-regulated Holland Immo Group offers funds specialising in residential properties, healthcare real estate and car parks to both private and institutional investors and has AUM of €0.9 bn across more than 25 real estate funds in the Netherlands, Germany, Italy, and Spain. The purchase price was not disclosed.
'Holland Immo Group has an outstanding reputation in the Netherlands thanks to the performance of its funds, its strong and loyal client base and an excellent track record that goes back more than two decades,' said Peter Helfrich, managing partner at Primevest. 'We have very complimentary businesses and through the 30-strong team of Holland Immo Group we will have direct access to established relationships with private investor clients and family offices. This deal also adds a wealth of knowledge to our already experienced team and will further strengthen our capabilities across all areas including acquisitions, asset and risk management and compliance. We have set out a vision to help our clients to provide for their sustainable financial future through investing in the future of our cities by delivering sustainable urban living, improving connectivity, and enabling mobility, and this acquisition will help us to deliver on our ambitions.'
Manfred Kühl, Chief Executive Officer at Holland Immo Group said: 'Both Primevest and Holland Immo Group are boutique firms specialising in alternative real estate assets that are seeing huge demand from investors and occupiers. As a combined group we can offer a highly professional team, strong fund and asset management expertise and a large acquisition network across these niche markets. We are a great fit in terms of assets under management with portfolios across the residential, healthcare and parking segments, and with Primevest’s focus on institutional investors and our own on private investors and family offices, we are expanding our access to new investor groups.'
The market for real estate investment funds, including alternative asset classes such as car parks and telecommunications infrastructure, has shown steady growth over the last decade. Demand for these funds from private and semi-institutional investors will accelerate further as the population gets structurally older and the need for individuals to manage their own retirement schemes increases. The low interest rate environment is leading to a rotation from government bonds and savings accounts into other asset classes as a rising number of private investors follow the lead of institutional players and look elsewhere for stable income sources for their personal retirement schemes.
Primevest believes that indirect real estate investments through fund vehicles provide diversification benefits combined with inflation hedging. 'We are seeing significant growth in the private and semi-institutional markets following a growing group of people making their own retirement provisions and are looking for a trusted provider in this market. Primevest Capital Partners, together with Holland Immo Group, can fulfil that need and offers a comprehensive and expanding range of investment opportunities for its clients,' said Peter Helfrich.
