Investec is planning to commit £250m (€291.5m) over the next two years to develop and reposition assets in the UK under a new value-add real estate strategy.
The financial services group has launched Investec Realis and said it will commit equity to every acquisition alongside investors in the strategy led by Yon Papageorgiou, the head of real estate equity investments at Investec.
Investec expects the new value-add strategy to benefit from its established real estate platform and access to a global network of experienced operating partners.
Realis recently closed its first investment, acquiring 255 High Street, a recently refurbished, 45,500sqft office in central Guildford, a transaction Investec said was funded with equity commitments from investors based in the UK and the Channel Islands, Switzerland and South Africa.
“Over the next two years, Realis is seeking to deploy, with leverage, £250m into two main investment theses: asset development or repositioning, with a focus on highly liquid markets; and distressed transactions, where the underlying investment benefits from strong long-term fundamentals,” Investec added.
Papageorgiou said: “What differentiates this strategy is the combination of Investec’s 30-year through-the-cycle track record, its data-led approach to investing and its unparalleled network of best-in-class operating partners. All of these factors mean we are uniquely placed to access off-market opportunities at attractive pricing and then execute a business plan that generates significant outperformance.
“UK commercial real estate is witnessing an unprecedented repricing moment and, along with a currency advantage, offers global investors a compelling entry point. Closing this first acquisition, in one of our high conviction sectors, is a significant milestone. With a £150m near term pipeline, we look forward to accelerating our AUM growth in 2024.”
Mark Bladon, the head of Investec Real Estate, said: “Our equity strategy has been launched in direct response to demand from our global client base, who recognise the attractive total return characteristics that UK real estate can offer and the benefits of accessing it via one of the UK’s most active platforms, led by a highly experienced team.”
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