Primonial Group Sets up Luxembourg Asset Management Office

As part of its European growth strategy, the Primonial group has announced that it has set up Primonial Luxembourg Real Estate, an asset management company based in Luxembourg and focused on managing pan-European real-estate funds.

Primonial Luxembourg Real Estate’s team currently consists of three Conducting Officers: Laurent Fléchet in charge of Investor Relations, Ronan Bodéré of Fund Management and Giovanni Amendola of Risk Management.

After obtaining AIMFD authorisation on 19 September 2018, Primonial Luxembourg Real Estate completed the first closing of its new Primonial European Residential Fund (PERF) on 31 October.

Targeting total investments of €500 million and an IRR of around 9% over 8 years, PERF is a Core+ fund that aims to build a pan-European residential portfolio generating steady cash flow and comprising potential for creating value.

PERF has finalised its first investment as part of a partnership with Aedifica. It consists of acquiring in two phases 75% of a high-quality portfolio consisting mainly of prime properties in Brussels and made up of 71 buildings representing 96,000 m² of floorspace.

The first phase of the transaction was completed on 31 October, with PERF acquiring 50% of the portfolio. The second phase is expected to complete in the first half of 2019. This investment and other purchases currently being assessed already represent two thirds of the fund’s target assets.

Laurent Fléchet, Deputy Chief Executive Officer of the Primonial group in charge of real estate, and Director of Primonial Luxembourg, said: “Primonial Luxembourg Real Estate allows us to create and manage pan-European funds for investors in Europe and elsewhere. The eurozone countries in which the Primonial group currently operates give access to mid-size residential properties and portfolios that offer a very good risk/return profile.”

Primonial Luxembourg Real Estate is an asset management company set up by the Primonial group in Luxembourg in April 2018. Its purpose is to create and manage pan-European real-estate funds for investors in Europe and elsewhere. Primonial Luxembourg Real Estate received AIMFD authorisation from the Luxembourg financial supervisory authority CSSF on 19 September 2018.

It is managed by a board of directors consisting of Laurent Fléchet, who is also Deputy Chief Executive Officer of the Primonial group in charge of real estate, as well as Ronan Bodéré and Stéphane Vidal, Chairman of the Primonial group.