Pan-European real estate investment manager L'Etoile Properties has launched an open-ended special fund for German institutional investors, and has already received clearance for the fund from German financial watchdog BaFin.
The EP Sienna IM European 'broken core' office fund is an open-ended German special fund focusing on office properties in established office locations in Germany, France, Spain and the Netherlands.
The fund will be managed by Britta Slater, who is joining the pan-European real estate investment manager from the Evangelische Zusatzversorgungskasse. As managing director of freshly-established business unit L'Etoile Properties Funds, she will report to Richard Apfelbacher as senior managing partner.
The term "broken core" was coined by L'Etoile and refers to buildings with "core" characteristics in established office locations but with minor deficiencies: for example, a low vacancy rate, short average remaining lease terms (WALTs) or manageable technical problems. Active asset management, revitalisation and the repositioning of the properties, as well as upgrading investments, should increase value for investors.
According to Didier Unglik, President of L’Etoile Properties, “The EP Sienna IM European Broken Core Office Fund is specifically designed to address the needs of German institutional investors who have slightly higher return requirements but do not wish to take significant risks. With this fund, we are hitting the right nerve with investors – as evidenced by the fact that we had our first closing at €115 million shortly after the coronavirus measures were relaxed and investment activity increased again. We are confident that we can quickly raise further funds for this fund and invest them quickly and successfully. We're showing that we stand behind this investment by investing in the fund with our own capital."
L'Etoile Properties was acquired back in August by Sienna Investment Managers, the alternative investment and real assets arm of Groupe Bruxelles Lambert (GBL). The acquisition tripled the value of Sienna's assets under management at one fell swoop. Sienna, which was launched by Belgian holding company GBL in 2013, said the acquisition of the €7bn L’Etoile would take its assets under management to €10bn.
L’Etoile, which has 85 employees in Amsterdam, Hamburg, Paris, Madrid, London and South Korea, has been managing European real estate investments on behalf of international institutional investors for more than 30 years, with a focus on offices, hotels and logistics.