Pan-European real estate investment manager L'Etoile Properties has unveiled its latest European real estate fund, for which it has received BaFin approval.
The EP Sienna IM European 'broken core' office fund is an open-ended German special fund focusing on office properties in established office locations in Germany, France, Spain and the Netherlands.
The fund is managed by Britta Slater, who is supported by experienced teams in the target countries. Slater is the managing director of the newly founded business unit L’Etoile Properties Funds, headquartered in Frankfurt am Main, which is headed by Richard Apfelbacher as senior managing partner and head of L’Etoile Properties Funds.
Samy Bchir will take over the group chief investment officer position at L’Etoile. In his new role, he will be responsible for and continue to expand L’Etoile's international investment business. He is based in Paris and reports to Didier Unglik, President of L’Etoile Properties.
Broken core concept
The concept of broken core – a term coined by L’Etoile – provides for investment in buildings with core characteristics but with minor shortcomings such as low vacancy rates, short weighted average lease terms or manageable technical problems.
Active asset management, revitalisation and repositioning of properties as well as upgrading investments will increase the value for investors.
Broken core is a sub-category of core plus, but has a significantly lower risk profile, e.g. compared to manage-to-core. The properties are located in the best business situations or established sub-markets with strong tenant demand and liquid investment markets, as is typical for core investments.
In order to further reduce risks, the tenant structure will be converted from individual tenants to a lease to several parties. Due to the club-deal nature of the fund, investors exercise a considerable degree of participation: all transactions will only be carried out with the investors' consent, and investors will also be consulted on important issues of fund structure and the investment universe.
'The EP Sienna IM European Broken Core Office Fund is specifically designed to address the needs of German institutional investors who have slightly higher return requirements but do not wish to take significant risks,' said Didier Unglik, president of L’Etoile Properties.
Added Richard Apfelbacher, senior managing partner and head of L’Etoile Properties Funds: 'Institutional investors with their indirect investment requirements are an important customer group for us, which we want to address even more in the future.
'In order to support them further and develop successful strategies for them and with them, we have expanded our German location and created L’Etoile Properties Funds, a special business unit that addresses the specific requirements and needs of this investor group.'
