Corporate overview
For almost 250 years, Edmond de Rothschild has represented a unique brand with a strong reputation in the financial world and has always managed its business activities with conviction and a long-term vision.
Edmond de Rothschild REIM is the group’s centre of excellence for real estate and real estate debt in Europe, bringing together teams of experienced professionals who combine their local expertise with technical, financial, legal, strategic and commercial skills to generate value from all types of real estate assets.
Edmond de Rothschild REIM is vertically integrated providing in-depth property and financing expertise to generate sustainable performance through different economic and property cycles. We provide a range of services to investors and owners from fully integrated discretionary investment management, various types of advisory mandates, and separate asset management accounts. Our offering includes debt and equity investment strategies across the risk/return spectrum ranging from secure income core/core+ type strategies to value add/development strategies.
We believe that success in real estate is determined by local presence and local knowledge, either via our own staff or via our network of local partners. We are a conviction-driven investment house targeting specific strategies in selected markets where we have sufficient expertise, execution and management capability, and track record, with a strong ESG focus.
We operate a European network of nine offices across seven countries with 140+ employees and over €13 billion of assets under management and advisory, providing conviction-driven investment by local experts.
Sector forecasts
INDUSTRIAL: The structural change in consumer habits combined with the move to online shopping and increasing urbanisation have increased demand for logistics and industrial space. As a result of recent supply chain disruptions (COVID and the Ukraine war) as well as the need for decarbonisation of their businesses, companies are looking to locate the production, assembly and distribution of their products closer to the end-consumer. This is increasing the demand for assets located in proximity to larger cities and major road/ transport links. Vacancy rates and new supply are low as a result of tight planning regulations, the rise of construction costs as well as political and environmental considerations.
Light industrial and logistics assets close to urban areas offer the potential for sustainable and stable income over the long term. Smaller and medium-sized buildings offer good opportunities to drive rents and increase income. Investments in ESG (solar panels, EV chargers) provide very good additional value potential, whilst improving the quality of the buildings. This requires the intervention and active management of local established teams.
OFFICE: Changes in working habits continue to affect occupier demand and initial yields have increased due to rising interest rates. Vacancy rates remain at an historically low level and market rents are still increasing in some markets.
Tenants increasingly focus on buildings with good sustainability credentials and low energy consumption. City centre amenity-rich office buildings with good public transport connections and sustainability credentials will continue to be in high demand. Larger HQ-type office buildings and secondary locations are expected to suffer in the long run. Employers will increasingly focus on offering attractive space in order to attract talent and increase the productivity of their employees. Landlords will be required to offer more flexibility, potentially resulting in a shortening of the duration of leases.
RESIDENTIAL: Population growth and a reduction in the number of people per household ensure demand for housing will continue to outstrip supply in most European countries with affordability increasingly becoming an issue. Rent controls, rising construction costs and higher interest rates, make it increasingly difficult to build new stock.
In the long run, the market offers opportunities to invest in existing residential assets as well as new developments with good sustainability credentials and affordable rents.
DEBT: Banks have been steadily withdrawing from commercial real estate lending in Europe since the Global Financial Crisis. High inflation rates, rapid interest rate hikes and a fragile economic outlook are accelerating this trend as we go through a phase of asset repricing in Europe. For investors there is a compelling opportunity to benefit from higher coupons on new loans at lower LTVs and tighter lending structures. The next few years will provide an excellent vintage for real estate debt investments in Europe with an attractive risk-return proposition. However, maintaining strict investment discipline and focus on quality loans backed by strong sponsors and good assets is key.
Investment principles & strategy
We are a conviction-driven investment house where investment themes guide our sectoral convictions; we invest in strategies in selected markets where we have deep expertise, execution and management capability, and track record, with a strong ESG focus.
We believe that the future of real estate lies in the ability to address social, demographic, technological and environmental challenges.
We are committed to achieving long-term sustainable outcomes through our real estate assets, across our supply chain and in the communities in which we operate. Our sustainability framework addresses environmental social and governance issues in order to:
- Enhance value and minimise risk for our investors
- Deliver exceptional real estate experiences for our tenants
- Perform in line with global best practice
- Develop our employees’ and partners’ sustainability knowledge so they can be advocates
- Foster a culture which embraces sustainability as a genuine core value.
By adopting a disciplined approach, we aim to achieve more resilient and sustainable property portfolios which will enhance value and deliver improved performance.
Strategic corporate development
Edmond de Rothschild REIM provides focused and specialist investment and asset management solutions to institutional investors, family offices and professional investors in the form of funds, mandates, clubs and joint ventures.
Our fund strategies are designed to deliver income growth and capital preservation. Our in-depth knowledge of markets and sectors and our long-term vision have led to the creation of funds in specific geographies and/or sectors. Mandates are tailored for a specific client where our expertise in a particular discipline, sector or geography can add value. Our club and joint venture offering matches a portfolio or asset secured by our team with a limited group of like-minded investors.
Our priorities are to improve the sustainability of existing assets, put users at the heart of our approach and act with meaning and commitment by systematically integrating sustainability considerations into our operational and investment processes.
Performance verification
Performance figures are based on the local accounting principles or IFRS and externally audited. For funds, the INREV valuation principles are applied and also confirmed by an external audit.
COMPLIANCE STATEMENT
The information provided in this document should not be considered as an offer, an inducement, or a solicitation to deal by anyone in any jurisdiction where it would be unlawful or where the person providing it is not qualified to do so. It is not intended to constitute, and should not be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell or continue to hold any investment.
The figures, comments, forward looking statements and elements provided in this document reflect the opinion of Edmond de Rothschild Group on market trends based on economic data and information available as of today. In addition, Edmond de Rothschild Group shall assume no liability for the quality or accuracy of information/economic data provided by third parties.
Edmond de Rothschild REIM (Suisse) S.A. is regulated by FINMA in Switzerland, Edmond de Rothschild Real Estate Investment Capital (UK) LLP is regulated by the FCA in the UK and Edmond de Rothschild REIM (France) S.A.S. is regulated by AMF in France.
© Edmond de Rothschild
