Corporate overview

Edmond de Rothschild REIM is the real estate investment management business within the Edmond de Rothschild Group. Drawing on our presence in seven European countries, our integrated real estate platform brings together teams of top professionals who combine their local expertise with technical, financial, legal, strategic and commercial skills to generate value on all types of real estate assets.

These services are provided on a vertically integrated basis to provide a comprehensive, efficient and cost-effective investment management offering delivered through specialist funds, bespoke mandates and joint ventures and clubs, to institutions, family offices and professional investors. Edmond de Rothschild REIM is active in the office, industrial, logistics and residential sectors.

Real estate is a sector that is very closely linked to changes in our society and our lifestyles. Amidst environmental challenges, changing habits, the digital revolution and urban transformation, the real estate sector is facing the major upheavals of our time. More than ever, we are convinced that the future of the sector lies in its ability to meet the new social, demographic, technological and environmental challenges.

As such, our conviction is that we must, via our direct investments and with our clients, facilitate and finance the major transformations in this sector, whether they affect land-use planning, the development of innovative and sustainable buildings, or the renovation and energy optimisation of obsolete buildings.

We operate a European network of nine offices across seven countries with 120 employees and over €13bn 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, increasing urbanisation and growth in manufacturing has increased demand, especially for those assets located in proximity to larger cities and major road/transport links. While demand is increasing, supply has been limited by tight planning regulations and higher value alternative uses.

With prices of large modern logistic warehouses having increased rapidly, light industrial and small logistics still offer attractive returns. At the same time, liquidity of this segment has increased. New supply of space has been limited with construction focused on larger schemes.

Therefore, we see light industrial and logistics assets offering the potential for sustainable and stable income over the long term. Often, historically under- managed buildings offer potential for active management and rental growth. The sector continues to attract investors’ interest because of its exposure to structural trends; in particular where tenants are involved in e-commerce and last mile delivery.

OFFICE: Post COVID -19, tenant and investor demand for core office buildings in city centre locations has resumed strongly. Overall vacancy in Western Europe is very low, which will be supportive for rents and values. Nevertheless, demand for office buildings in secondary locations and offices that are less adapted to changing occupier requirements is expected to suffer.

In the long run, COVID -19 is expected to have accelerated existing trends related to working habits. Flexible office spaces that serve as meeting places for people and that stimulate corporate culture in locations well served by public transport and amenities will continue to be in 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: As a result of population growth and a reduction in the number of people per household, demand for housing will continue to outstrip supply in most European countries. In particular, in countries where new supply has been restricted, rents and prices are expected to continue to increase. Affordability will continue to suffer, increasing the need for affordable housing.

DEBT: As a result of bank regulation and solvency requirements, mainstream commercial banks are expected to reduce their exposure to real estate. On the other hand, investors will look for yield. With bond yields in negative territory, real estate debt offers an attractive risk/return profile.

 

Investment principles & strategy

Edmond de Rothschild REIM is convinced that providing in-depth property and financing expertise generates sustainable performance through different economic and property cycles.

Property is a real asset and benefits from local knowledge of the market and its participants (owners and occupiers). Our 120 specialists, based in seven Euro- pean countries, have excellent knowledge of the challenges that are specific to their location. They are thus able to build real partnerships locally, a veritable source of added value for our clients, and to identify strong opportunities.

We provide a range of services to investors and owners from fully integrated discretionary investment management, at one end of the spectrum, through various types of advisory and separate asset management accounts. Our com- prehensive offering includes debt and equity investment strategies across the risk/return spectrum ranging from core/core-plus-type less risky income- driven strategies to value add/development strategies with potentially signifi- cant value upside.

We invest across Western European markets with a focus on countries where we have our own people on the ground, in particular in the Benelux countries, France, Germany, Switzerland and the UK.

Sustainability is paramount for the real estate industry in the face of increasing demand for new green buildings and we recognise that our main challenge lies in upgrading and renovating existing building stock.

 

Strategic corporate development

Edmond de Rothschild REIM provides focused and specialist investment and asset management solutions to institutional investors, family offices and profes- sional investors in the form of funds, mandates, clubs and joint ventures.

Our fund strategies are generally designed to deliver income growth and capital preservation. Our convictions and expertise have created funds with 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.

Sustainability is increasingly important to us and to our 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 integrating ESG considera- tions into all of our operational and investment processes.

 

Performance verification

Performance figures are based on the local accounting principles or IFRS and externallIy 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