European real estate asset manager Primonial REIM is planning new transactions in Italy, Germany, and Spain over the next two to three months, company president Laurent Fléchet told PropertyEU.
‘We plan to continue our pan-European development. In France we are working on launching a new vehicle, a new product and that will be for September. We are also working on other asset classes, including debt,’ he added.
The latest expansion plans come after Primonial REIM established a Spanish arm in February 2024 and acquired a majority stake in Italy’s Quinta Capital Partners SGR last December.
Fléchet highlighted that the company’s focus on building a strong foundation in Italy, Spain, and Germany, through property and asset management, enabled it to maximise value creation.
‘We only want to invest in the eurozone. Maybe we will have a look at the UK market, but it is too early, it is something for 2025,’ he admitted.
According to Fléchet, Primonial REIM is comfortable with its current financing approach by building strong business development teams. The company has increased its presence through offices in London and Singapore, plus reinforced teams in Germany (DACH region), France, and Spain.
‘Our capacity to raise equity with overseas institutional investors is bigger than it was two or three years before and we aim to raise more equity in the future,’ he explained.
Compared to 2023, he believes there is a sense of increased visibility and a clearer picture for 2024. ‘What we need now is to have one or two big transactions from key players, maybe one decrease of interest rates from the central banks,’ he said.
The key to creating value in the new cycle will be through a deep understanding of real estate fundamentals, namely strong asset management and capping indexation.
Primonial REIM manages a balanced portfolio of €40 bn with 32% in offices and the remaining in alternative assets like residential and social infrastructure.
Fléchet expressed confidence that the diversified portfolio with a focus on social infrastructure and the proactive management of office assets positions will enable Primonial REIM to navigate the new cycle.
‘I’m convinced that social infrastructure will have the capacity to cap indexation to protect against inflation and to create value for the new cycle, even if it will take 5, 10 or 15 years. In the office segment, maybe 2-3 buildings will be impacted. All the other ones are well located, close to transportation, and we are quite well prepared,’ he concluded.
