Amundi is Europe’s largest asset manager by assets under management and ranks in the top 10* globally. With close to 4,800 professionals based in 36 countries, it now manages €1.8trn of assets** across six main investment hubs. Headquartered in Paris, Amundi was created in 2010 and listed on the French stock exchange in 2015. In 2016, Amundi launched Amundi Real Assets to provide easier access to unlisted investments. Bringing together capabilities in real estate, private debt, private equity, multi-management and infrastructure, Amundi Real Assets (ARA) is comprised of 220 experienced professionals based in Paris, London, Milan, Luxembourg, Barcelona, Madrid and Dublin, and manages €60.5bn** of assets under management and more than 1,700 assets in 16 countries.
As part of ARA, Amundi Real Estate is a company specialised in developing, structuring and managing European focus property funds. With €41.2bn of assets under management**, the firm is the fifth largest Europe-based real estate fund manager by AUM***, number one in France in terms of fundraising and assets under management for SCPI and retail OCPI**** and number one across Europe for office real estate*****. With its fundraising power, Amundi has the ability to take part in Europe’s major real estate transactions, with over €2bn invested every year on average. Amundi Real Estate is an authorised management company active in France, Germany, Italy, the United Kingdom, the Czech Republic, the Netherlands and Luxemburg. Drawing on 40 years of expertise, Amundi RE manages all types of investment solutions for its French and European clients: club deals, co-investments, dedicated mandates, and closed-ended or open- ended funds.
* Source :IPE ‘Top 500 asset managers’ published in June 2021 and based on AUM as of 31 December 2020.
** Amundi figures as of 30 September 2021
*** Source: 2021 Preqin Alternative Assets in Europe report.
**** Source: IEIF, March 2020.
***** Source: IPE, December 2020
INDUSTRIAL: The segmentation by asset class is showcased by discrepancies in capital value growth: the asset classes most impacted were European hotels and retail assets, with drops in capital values worth 6% and more in 2020. At the same time, residential and industrial/logistic assets recorded capital value growth above 3% last year. Such opposing trends highlights different investor behaviour, as well as the different features of leasing markets.
OFFICE: Although down around 30% YoY, offices remain the leading asset class on the real estate investment market and the deepest one in terms of investment turnover. Despite the acceleration of remote working, we believe offices will still be needed in a post COVID-19 world as a collaborative tool and as a mean to attract talent. In the likely new hybrid work model – where in-presence and remote work options coexist – office space should evolve from a place where employees sit at their desk to a space where connecting and sharing ideas is made easier. This evolution should depend on companies and jobs. The current persistence of low prime yields for offices may signal confidence in prime office space by long-term investors.
RESIDENTIAL: Demand for high-quality ESG residential buildings in smart cities remains strong, but supply is still out of balance. We expect rising investor appetite for residential and logistic assets (demand for logistic assets has been driven by the double-digit growth experienced by e-commerce).
RETAIL: Shopping malls and brick-and-mortar retail have been hit hard by the pandemic and the rise of e-commerce, but trends towards omnichannel shopping could offer some resilience to both sectors. Retailers should manage their store network as a dynamic asset that compounds physical and digital channels to fulfil customer needs by building dynamic store formats that create a fruitful customer experience. Given the multi-store nature of many retail real estate footprints, the adoption of a comprehensive strategy to tackle decarbonisation will be paramount.
Investment principles & strategy
We designed a robust investment process in which a SRI policy is embedded at each stage: starting with a thorough analysis of European markets’ dynamics, supported by extensive asset sourcing capabilities, and followed by a stringent asset selection. Properties are then actively managed throughout the lifespan of the investment to create value and alpha. Three main principles define our investment philosophy:
1) Fund allocation driven by multi-disciplinary research: To forge its market opinions, Amundi Real Estate has developed an internal research capacity specialised in French and European real estate markets. Amundi Real Estate also benefits from Credit Agricole group’s macro-economic and fundamental research as well as the investment strategy models produced by the Amundi group. This multi-disciplinary research contributes to suggest strategic alloca- tions and to define return/risk profiles for existing and new funds.
2) Strong expertise in a structured investment process: Our asset management teams are structured by real estate sector, developing a very sharp specialisation in their area of activity. Clear, solid and formalised management processes and working procedures frame our management actions in order to avoid operational risk and conflicts of interest. With this management approach, thematic committees have been created to validate and agree each decision at each step of the process and favour confrontation of opinions.
3) Strict risk control: We are pragmatic and prudent in our investment decisions, and nurture a strong risk management culture. In addition to systematic risk controls, independent internal risk managers ensure compliance with regulatory constraints and the risk limits defined by each investor and for each product.
Strategic corporate development
Amundi Real Estate has been a leading player in originating, developing and managing property assets in France and across all major European cities for 40 years. Our pan-European diversification strategy relies on local partnerships with the best experts in each country. We are therefore able to build the local ecosystems we need for the acquisition and management of our property assets. European real estate markets are diverse enough to provide opportunities that depend upon the economic situation, prospective, and major events that occur locally. Office buildings represent nearly 70% of our assets under management, but our diversification strategy leads us to cover all segments of the real estate market, from hotels through to warehouses and to commercial buildings. More than ever, we are targeting core assets, which allow us to forestall the destruction of value and performance in times of crisis. We should be able to boost performance by focusing on development strategies, which benefit from a risk premium that is 100–200 basis points higher. We call this strategy ‘manage to core’. We aim to transform existing buildings into core ESG assets that comply with the highest environmental and energy consumption standards.
We benefit from a diversified client base made up of both retail and institutional investors. Our institutional clients favour our ability to provide them with easy access to the best real estate assets in France and in Europe’s major cities.
These investments are carried out via open or closed funds, club deals, co- investments, and dedicated mandates.
We benefit from a diversified client base made up of both retail and institutional investors. They value our ability to give them access to the best real estate assets in France (Paris, Lyon, Marseille, …) and over all major European cities: London, Berlin, Amsterdam, Prague, Milan.
Drawing on its 40-year track record, Amundi RE manages all types of investment solutions for its French and European clients: club deals, co-investments, dedicated mandates, and closed-ended or open-ended funds.
Amundi Real Estate (corporate name: Amundi Immobilier) is approved by the French Securities Authority (Autorité des Marchés Financiers – “AMF”) under No. GP 07000033 and therefore follows its performance verification standards.
These materials are provided for use by qualified institutional investors for informa- tional purposes only and are not intended as solicitations of investment business. The information and opinions are based upon sources that are considered to be reliable, but no representation or warranty is made as to their completeness or accuracy. Past performance is not necessarily a guide to future performance. Further information is available on request. Amundi Immobilier is approved by the French Securities Authority Autorité des Marchés Financiers – “AMF”) under No. GP 07000033.
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