French group Primonial's newly created Luxembourg asset management platform has completed the first closing of its new Primonial European Residential Fund (PERF) and inked an initial deal in Brussels in partnership with Aedifica.
PERF has agreed to acquire, in two stages, 75% of a high-quality portfolio consisting of 71 buildings representing 96,000 m2 of floor space, most of which are prime properties located in Brussels.
The first phase of the transaction was completed on 31 October, with PERF acquiring 50% of the portfolio. The second phase is expected to complete in the first half of 2019.
This investment and other purchases currently being assessed already represent two-thirds of the fund’s target assets.
The deal came after Primonial Luxembourg Real Estate completed the first closing of its new Primonial European Residential Fund (PERF) on 31 October.
Targeting total investments of €500 mln and an IRR of around 9% over eight years, PERF is a Core+ fund that aims to build a pan-European residential portfolio generating steady cash flow and comprising potential for creating value.
Primonial Luxembourg Real Estate’s team currently consists of three Conducting Officers: Laurent Fléchet in charge of Investor Relations, Ronan Bodéré heading up Fund Management and Giovanni Amendola taking care of Risk Management.
'Primonial Luxembourg Real Estate allows us to create and manage pan-European funds for investors in Europe and elsewhere. The eurozone countries in which the Primonial group currently operates give access to mid-size residential properties and portfolios that offer a very good risk/return profile,' said Fléchet.
