Sistema Capital Partners
Marjorie Brabet-Friel - Sistema Capital Partners
The new venture will be led by Marjorie Brabet-Fiel, former managing partner at Russian real estate advisory and investment management company Apex Capital Group.
Russia’s largest listed holding company Sistema JSFC has just recently established its own real estate private equity platform and bought €125m of German high street retail properties.
Sistema Capital Partners (SCP) has been created to invest in international real estate on behalf of its parent company alongside other institutional investors and high-net-worth individuals. It is listed on the London Stock Exchange.
The new venture will be led by Marjorie Brabet-Friel, former managing partner at Russian real estate advisory and investment management company Apex Capital Group.
The portfolio of 21 properties encompasses 56,300 sqm of lettable space, located on main shopping streets in mid-sized German cities, and was bought by SCP on behalf of a club of investors, including Sistema JSFC.
The cities are Bremen, Gotha, Cuxhaven, Flensburg, Celle, Schwerin, Merseburg, Flensburg, Mönchengladbach, Düren, Gelsenkirchen, Delmenhorst, Dinslaken, Minden, Oberhausen, Gießen, Essen, Gelsenkirchen, Gladbeck, Bad Homburg vor der Höhe und Hagen.
Tenants include C&A, H&M, Peek & Cloppenburg, Rewe, Rossmann und Saturn. The vacancy rate across the portfolio is 3%.
Brabet-Friel said: ”The German acquisitions kick-start Sistema Capital Partners’ investment programme, which will target assets in the most liquid international real estate markets, beginning in Europe. In general we aim to exit our investments within a four-year timeframe.”
SCP said individual high street properties outside Germany’s ‘big seven’ cities had been largely overlooked by institutional investors due to their small size and low liquidity. The company said it is “assembling a substantial high quality portfolio of assets in these mid-sized cities that through its scale will close the pricing gap”.
SCP will pursue the same approach for future deals: securing investments with capital from Sistema JSFC before offering participation to other investors through club-deal structures.
She added: “Sistema Capital Partners’ strategy is to secure a pipeline of proprietary deals that it then opens up to other like-minded institutional and high net worth investors, who have a hands-on approach in keeping control of their investments.”