AEW Europe has completed its merger with Ciloger, a provider of real estate funds for French retail investors, creating one of the largest real estate asset managers in Europe with over €24 bn of assets under management.
PropertyEU's Top 100 Investors published in October ranks Paris-based AEW Europe in 26th place, based to European real estate assets under management. The addition of Ciloger adds about €5 bn to AEW Europe's €19 bn of European assets managed for funds and separate account as of end-June this year.
The new total of €24 bn would move AEW Europe eight places up the existing ranking and position it ahead of Blackstone, which is in 19th place based on an European AUM of €23.3 bn), and almost on a par with UBS Global Asset Management, number 18 in the ranking with an AUM of €24.1 bn.
As a result of the transaction, Natixis Global Asset Management holds 60% of AEW Europe's share capital and La Banque Postale holds 40%.
Ciloger manages a number of retail funds with both diversified and sector specific strategies and has in excess of €5 bn in assets under management. AEW Europe will merge its existing French retail investor platform, NAMI – AEW Europe, with Ciloger's business to create the third largest manager of retail funds in the French market.
The reorganisation is subject to the usual approvals in France. Assuming it gets the green light, the combined retail platform will have access to the distribution networks of the BPCE Group and La Banque Postale, as well as investment opportunities sourced by AEW Europe’s pan-European network of real estate professionals.
Rob Wilkinson will continue as CEO of the enlarged AEW Europe Group. Isabelle Rossignol, the current managing director of Ciloger, will be appointed as head of the new French retail platform and member of the executive committee of AEW Europe. Serge Bataillie, currently managing director of NAMI – AEW Europe will take on the role of chief financial officer for the AEW Europe Group at the beginning of 2017, following the departure of Mireille Chetioui.
Wilkinson commented: 'This merger is another significant step forward in AEW Europe’s growth strategy. Isabelle and her team are well respected and bring with them a wealth of expertise that will help us to continue the development of our combined French retail platform. The current low interest rate environment has increased investor appetite for real estate funds and we believe there is significant potential to further expand this platform in the short to medium term.'
