European real estate investment firm TwentyTwo Real Estate and its subsidiary Scaprim have launched Powerhouse Habitat, a private residential REIT backed by institutional investors BNP Paribas Cardif and Société Générale Insurance.
Powerhouse Habitat's portfolio consists of approximately 6,700 single-family units worth more than €1 bn, located throughout France and mainly leased to power company EDF.
According to TwentyTwo, the REIT has the ambition to become a major player in the French residential market through further acquisitions of affordable rental housing units in the private sector, to a projected volume of €3 bn in the next three years.
The portfolio was purchased by Powerhouse Habitat from Massena Partners and Farallon Capital Management.
'This transaction is the founding act of Powerhouse Habitat, which benefits from a high quality initial property portfolio,' commented Daniel Rigny, founder of TwentyTwo Real Estate. 'The affordable housing sector, which will be the focus of the company, enjoys strong fundamentals, supported by favorable demographics, and offers attractive growth opportunities.'
TwentyTwo Real Estate, which completed the transaction, will continue to manage the property portfolio through its subsidiary, Scaprim.
'The creation and development of Powerhouse Habitat is part of our strategy to strengthen and diversify our investments into the residential sector,' said Nathalie Robin, real estate director at BNP Paribas Cardif.
'Our investment in Powerhouse Habitat materializes our desire to diversify our real estate portfolio into the residential sector,' commented Yann Briand, real estate director at Societe Generale Insurance.
BNP Paribas Cardif, Société Générale Insurance and OPCI BNP Paribas Diversipierre were advised by White&Case, Mazars, Cheuvreux and Fidal.
