Pictet Alternative Advisors (Europe) S.A., an alternative investment company of the Pictet group, has announced the launch of a real estate private equity fund, Pictet Real Estate Capital –Elevation Core Plus. It is the first to allow European non-professional clients to invest in real estate assets through a European Long-Term Investment Fund (ELTIF), a figure that seeks to promote long-term European investments in the real economy, as a modality of alternative closed-end investment funds.
It complements ‘Elevation’ series of real estate private equity, whose previous fund, Elevation I, was successfully closed in February 2020 at maximum raising limit, EUR 700 million.
Pictet Real Estate Capital – Elevation Core Plus will seek to provide two sources of profitability: rental income, which, linked to consumer price indices, offers partial protection against inflation; as well as capital appreciation, through management and improvement of the real estate assets in which it will invest.
It will leverage three main growth drivers and catalysts of the post-pandemic real estate sector: sustainability, wellness and technology. One of its objectives, given the focus on addressing the climate emergency, is to improve the sustainability of real estate assets, reducing their environmental footprint, through rehabilitation and improvement, using their own parameters, which can generate higher rents, occupancy rates and profitability. It will invest primarily in high-quality residential assets and offices in major Western European cities, including special situations and last-mile logistics, whose demand has grown rapidly during the pandemic with the expansion of e-commerce and one-hour deliveries.
It is classified under Article 8 of the Regulation on Disclosure of Information Relating to Sustainability in the Financial Services Sector by taking into account and promoting environmental and social characteristics in the buildings in which it invests.
The fund is managed by a team of eleven, under direction of Zsolt Kohalmi, with 116 years of experience in investments and real estate operations worth 35.5 billion euros of the senior members.
“The Covid-19 pandemic has accelerated changes in the way we live, work, shop and spend our leisure time, with a demand for more efficient and environmentally friendly buildings increasing at a rate never seen before. It is increasingly common for tenants to demand flexibility, with an emphasis on healthier living and à la carte services. As a result, sustainable real estate is beginning to be valued at a premium. So, in order to have a positive impact and reap the rewards of this shift to a more sustainable future, we will focus on investing in buildings of the ‘new economy”.Zsolt Kohalmi,Global Head of Real Estate and Co-CEO of Pictet Alternative Advisors
“The structure of the fund has been a key consideration in the development of this strategy. It has been designed for institutional investors as well as for private clients and, due to its classification as a European Long-Term Investment Fund, it is the first to allow European non-professional clients to invest in a closed-end real estate fund”.Charles Foucard,CfO and Head of Development Strategy at Pictet Alternative Advisors
This new European Long-Term Investment Fund vehicle is a Luxembourg SICAV. It will try to generate single mid-digit net returns. It comprises paid-up or committed capital, capitalization and distribution sub-funds. Capital is not guaranteed. The product is aimed at investors with knowledge and or experience in this type of products, who have obtained advice and can maintain a low liquid investment in the long term. The minimum subscription amount is 20,000 EUR for retail investors. Prospectus and Key Investor Information document should be consulted prior to any final investment.