Investec has launched a new real estate equity strategy, Investec REALIS, providing global investors with deal-by-deal access to institutional-quality UK real estate and the attractive returns it offers.
The launch comes as commercial real estate in the UK witnesses an 'unprecedented repricing moment', according to Yon Papageorgiou, head of real estate equity investments.
'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,' he said.
'UK commercial real estate is witnessing an unprecedented repricing moment and, along with a currency advantage, offers global investors a compelling entry point.'
Papageorgiou joined Investec in August 2022 from TwentyTwo Real Estate.
Investec will commit equity to every acquisition alongside investors, with the firm envisaging firepower of £250 mln with leverage.
REALIS has closed its maiden transaction, that of 55 High Street, a recently refurbished, 45,500 ft2 Grade-A, EPC A rated office in central Guildford. The transaction was funded with equity commitments from investors based in the UK and the Channel Islands, Switzerland and South Africa.
In a statement, the company said: 'Over the next two years, REALIS is seeking to deploy, with leverage, £250 mln 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.'
'The launch of REALIS follows a period of rapid repricing within select parts of the real estate market. This, coupled with increasing distress in certain sectors, offers an attractive entry point for investors with no legacy issues.'
'Closing this first acquisition, in one of our high conviction sectors, is a significant milestone. With a £150 mln near term pipeline, the UK arm said it looked forward to accelerating AUM growth in 2024.'
Mark Bladon, head of Investec Real Estate, added: '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.'
