Real IS, the property investment arm of German lender, BayernLB, has made its first acquisition for the special real estate alternative investment fund (AIF) Modern Living.
The purchase comprises a portfolio of three senior residences located in the suburbs of Paris and Dives-sur-Mer from BNP Paribas REIM. Financial details were not disclosed.
The properties are situated in residential areas close to the centre of the urban area, benefitting from retail and leisure facilities and good public transport connections. Two of the three residences are situated in the west and north-west of Paris, and the third is in Dives-sur-Mer in Normandy.
‘Senior living is a rapidly growing and increasingly popular asset class. In the context of the geographical and sectoral diversification of our investments, it was the right time and the right location for our first purchase for the Modern Living fund,’ said Axel Schulz, global head of investment at Real IS.
The residence Les Rives de Bagatelles in Suresnes, a suburb of Paris, is situated in Rue Diderot and offers a total rented space of approximately 6,000 m2, which are spread over eight storeys. This floor area is used as residential space and communal areas. There are also 80 parking spaces. The building was converted from an office building to a senior residence and completed in 2021.
The second property, the senior residence L’Éclat du Lac, is situated in Rue de Temple in Enghien-les-Bains, a suburb of Paris. The six storey complex has a total rented space (incl. communal areas) of approx. 3,600 m2. There are also ten parking spaces.
The third residence is called Les Safrans and is situated in Avenue Jean Isabelle in the coastal town of Dives-sur-Mer in Normandy, offering around 6,600 m2 of total rented space.
In future, the special real estate AIF will invest in existing buildings, newly built properties and real estate under construction in the residential segment. The focus will equally be placed on senior residence buildings, nursing homes, micro-apartments, student hostels, serviced apartments and classical residential buildings, Real IS revealed.
Country allocation will mainly be centred on investments in Germany, supplemented by other countries from the Eurozone. The aim is to establish a diversified residential property portfolio with an annual yield distribution of 2.75-3.25% on a ten year average.
Real I.S. was advised on the legal aspects of the acquisition by the notary’s office C&C notaires and the law firm SBKG & Associates.
CBRE provided commercial consulting services, and Arcadis was responsible for technical advice on the transaction. Fidal acted as tax consultant and Expret as finance advisor.
The seller was supported by JLL, Savills and the law practices Thibierge Notaires and CMS francis Lefebvre.
