An Enticing Rationale
- The French government has launched the “Grand Paris” project to transform the region over the next 30 years
- It represents the largest rail and road infrastructure project in Europe (EUR 30bn investment)
- Strong trends creating a tailwind environment for the “Grand Paris” real estate market:
- The “Grand Paris” region represents a third of France’s entire economic power
- Growing number of households drives the demand for more housing (divorce rate, increased life span, organic population increase)
- Migration from rural areas to urban areas is a global phenomenon
- Shortage of new homes drives prices increases
- High demand for premium accommodation in prime locations
- Strong demand for office space with modern facilities and environmental standards
- France has a legal framework facilitating the implementation of real estate projects:
- Relaxation of urban planning rules by the French authorities to accelerate building permits and more flats need to be built
- French legal framework reduces risks (VEFA) for both developers and home buyers while encouraging long-term investment decisions (tax incentives)
- External events reinforcing the investment rationale
- Paris has been chosen to host the Olympics in 2024
- The city most likely to benefit from Brexit
A COMPELLING INVESTMENT STRATEGY:
- Our strategy follows an investment philosophy clearly articulated around the “Grand Paris” project, crossing over Private Equity and Real Estate in a value add approach
- The investment theme is based on a “transformation approach”, investing alongside established real estate developers where Mirabaud will carefully select and challenge each project.
- Three sub-strategies with distinct risk/return profiles and time horizon: 1) Residential building projects, 2) Transformation of ex-industrial sites into residential/office space buildings, 3) Building/renovation of office spaces
- Each projects will benefit from the proximity of the existing, or future, infrastructure of public transportation from the “Grand Paris” master plan.
A TEAM AT THE CROSS ROADS BETWEEN PRIVATE EQUITY & REAL ESTATE:
- An expert team of five, led by R. Dutreil and O. Seux respectively bringing an unrivalled knowledge of the public space and converging expertise pertaining to both private equity (L Capital) and real estate (Nexity).
- Working alongside the most prominent national and regional promotors who will carry out their day-to-day activities:
- Sites identification
- Negotiation
- Conception
- Project design & Management
- Marketing
- Mirabaud Asset Management will:
- Bring its acute knowledge of both the market and its operators
- Lead the early stage identification of investment opportunities
- Pay close attention to innovation efforts vis à vis environmental issues
Investment Specifities:
- A fund dedicated to Real Estate transformation essentially answering strong demographic needs
- Providing privileged access to investment opportunities of an unprecedented public project
- Accompanied by a team of experts
- With an expected IRR in excess of 10% over the fund’s lifespan.
- Offers limited exposure to the real estate cycle as it will systematically realize investments on which transformation has been successfully completed.
- Main concerns are to be administrative ones such as:
- Potential delays on project delivery
- Possible adjustments on the delivery planning of the Grand Paris railway stations
- Of specific interest to French holders
- All this for the common good, in alignment with Mirabaud Asset Management’s DNA
To get more information about our Grand Paris Project please contact us at: marketing@mirabaud-am.com
