Edmond de Rothschild Immo Premium: a physical and financial real estate investment structure
The environment of low interest rates and high volatility has increased the need for diversification towards tangible, local assets. Real estate is a universal asset class and a priority identified by private clients. By acquiring Cleaveland, a reputable management company operating in physical real estate investment, in 2016, Edmond de Rothschild Bank gained the ability to offer its clients access to this asset class.
Vincent Taupin, Chairman of the Executive Board of Edmond de Rothschild (France), explained: "We believe that investment in real estate, the ultimate tangible asset, is a vital element of any asset strategy, especially in a context of low rates. Diversification, structuring, management and identification of investment opportunities, respond to the needs of family wealth, entrepreneurs and family offices."
The Edmond de Rothschild Immo Premium OPCI combines physical real estate assets with listed financial investments to provide a liquidity buffer.
Edmond de Rothschild Immo Premium will aim to invest in real estate and financial assets that present value-creation opportunities. The OPCI will be 60% invested in physical real estate and 30% invested in listed, real estate-related financial assets. A minimum of 10% of the portfolio will be reserved for investments in money-market products to meet the fund's liquidity requirements.
The strategy will be implemented by Cleaveland, the Edmond de Rothschild (France) real estate asset management arm. Cleaveland covers all real estate services, from investment, financing and structuring to renovation, restructuring, and the technical and administrative management of buildings. With 3.2 billion in assets under management and more than 240 physical real estate assets, Cleaveland, which is renowned for its expertise in all areas of real estate over the past 10 years, will draw on its knowledge of creating and managing OPCIs in order to invest in real estate assets that meet the defined investment strategy.
"Cleaveland, with its expertise gained from 23 OPCIs under management, combined with Edmond de Rothschild's strong structural capacity, offers private clients a unique opportunity to access this investment offering. For now, this OPCI will be the only one of its kind in France," says Laurent Fermaut, Chairman of the Executive Board of Cleaveland.
Real estate at the heart of the Edmond de Rothschild offering
The Edmond de Rothschild group has always offered its clients cutting-edge real estate expertise to create long-term value. For instance, the Group finances large infrastructure projects in Europe alongside institutional investors and innovates through its rehabilitation of polluted soils to revitalise urban areas and construct housing and retail premises.
"Real estate is not only a key sector of the economy capable of impacting global financial stability. It is also a sector intimately linked to changes in our societies and our lifestyles. That is why our Group has made it a speciality, with a strong objective – to anticipate trends and establish itself as an agent of change," says Ariane de Rothschild, Chair of the Edmond de Rothschild Group's Executive Committee.
In France, Edmond de Rothschild offers a complete range of real estate services: advisory and consultancy in real estate M&As through Edmond de Rothschild Corporate Finance and real estate management through Cleaveland.