Pictet Alternative Advisors, a wholly owned alternative investment company of Pictet Group, has announced the launch of a new Private Equity Real Estate (PERE) fund, Elevation Core Plus.
The fund will add to the Elevation franchise, initiated with the fundraising of a first Value Add PERE fund, closed at a hard cap of €700 mln in February 2020.
Elevation Core Plus will aim to offer investors two sources of return – a stable yield from rental income which is Consumer Price Index (CPI)-linked, and thereby offers partial protection against inflation; and capital appreciation from the management and enhancement of assets.
The investment approach leverages three main drivers of growth and catalysts of change in the Real Estate industry in a post-pandemic environment: sustainability, well-being and technology, according to the firm.
'With global attention focused on tackling the climate emergency, one of the objectives of Pictet Elevation Core Plus is to improve the sustainability of existing real estate assets, therefore reducing their environmental footprint. This approach to building design and operation is measured using our proprietary framework, and, we believe, also enhances returns for investors,' the firm said.
The fund will mainly invest in high quality residential and office assets in major Western European cities, special situation assets, and sectors such as last-mile logistics.
The Fund will be managed by a 11-strong team under Zsolt Kohalmi.
Zsolt Kohalmi, global head of Real Estate and co-CEO of Pictet Alternative Advisors said, 'The Covid-19 pandemic has accelerated changes in how we live, work, shop and spend our leisure time while demand for more efficient, environmentally-friendly buildings is growing at a pace not seen before. Tenants are increasingly demanding flexibility, with an emphasis on healthier living and services on demand, and, as a result, sustainable properties are starting to command a premium. We will focus on investing into ‘new economy’ real estate buildings to make a positive impact as well as to reap the rewards of this shift in demand to a more sustainable future.'
The product is a Luxembourg-domiciled SICAV Part II SA vehicle and benefits from a European Long-Term Investment Fund (ELTIF) label.
Charles Foucard, CFO and head of Development Strategy of Pictet Alternative Advisors added: 'The Fund structuring has been a key consideration for us in the development of this strategy. The Fund has been designed for both institutional and private clients and, thanks to its ELTIF label, will allow for the first time European non-professional clients to invest in a closed-end Private Equity Real Estate fund.'
