French group Primonial has announced the launch of a new real estate asset management platform in Luxembourg as part of its European growth plans.
The new unit, to be led by Primonial's Chief Operating Officer Laurent Fléchet, aims to offer French and foreign investors a geographically-diversified exposure across the euro zone.
It will initially focus on healthcare real estate, which has recently grown to represent over €3 bn of the company's real estate portfolio thanks to the €1.24 bn acquisition in 2016 of Gecina's healthcare arm, Gecimed, as well as the €1 bn purchase in the same year of the Panacea portfolio.
The company's funds currently own almost 200 healthcare facilities (Lcare homes, post-acute clinics, rehabilitation and MSO facilities, laboratories, psychiatric hospitals, nursing homes) in France, Germany and Italy, with the firm planning to grow further in Italy, Spain and Benelux.
'The creation of a platform in Luxembourg for the structuring and management of pan-European real estate funds illustrates the Primonial Group's desire to accelerate its development outside France,' commented Fléchet, COO and deputy Chief Executive Officer of the Primonial Group in charge of Real Estate.
Stéphane Vidal, President of the Primonial Group added: 'The great success of our real estate activity, led by Laurent and his teams, is the bearer of this ambitious new project. This is an important step in the internationalization strategy of the Primonial offer.'
Founded in 2011, Primonial REIM has grown rapidly over the past few years and in 2015 made its first investment abroad. It has recently announced plans to double total assets under management to over €30 bn by 2021.
The company is majority owned by London-based venture capital firm Bridgepoint, which in late 2016 bought a 52.5% share from previous shareholders BlackFin Capital Partners and Latour Capital.
Crédit Mutuel Arkea (CMA) retains a 35% stake and the management and employees of the group hold 12.5%.
In December last year the company announced plans to join forces with La Financière de l’Echiquier to create a major European asset management group.
