Pramerica Real Estate Investors is planning further joint ventures on the value-added side of the spectrum, the company's CEO for Europe Eric Adler told PropertyEU at the MIPIM fair in Cannes. Adler said the joint ventures would be of various types and would target smaller deals of less than EUR 50 mln rather than big ticket deals. 'Big deals are just not happening at the moment. But if you have a number of smaller deals that can add up to big amounts,' he said.
Pramerica Real Estate Investors is planning further joint ventures on the value-added side of the spectrum, the company's CEO for Europe Eric Adler told PropertyEU at the MIPIM fair in Cannes. Adler said the joint ventures would be of various types and would target smaller deals of less than EUR 50 mln rather than big ticket deals. 'Big deals are just not happening at the moment. But if you have a number of smaller deals that can add up to big amounts,' he said.
The joint ventures will target the retail sector in the UK and the residential sector in France and Germany. Pramerica already has residential joint ventures in Sweden and Germany. Adler said he hoped to make an announcement on the new alliances in the next few months. The plans follow the formation of a joint venture with Panattoni Europe last October to develop a portfolio of up to EUR 100 mln of Class A logistics warehouses in Poland, the Czech Republic and Slovakia. Adler said that the focus on smaller deals seen in 2010 would continue in 2011. 'Small is beautiful,' he noted. 'There will not be much change to that strategy in 2011.'
Adler also said Pramerica expects to add additional firepower shortly to its European mezzanine debt initiative which will allow it to target individual debt deals of up to £50 mln in the UK and Germany.
