Edmond de Rothschild Real Estate Investment Management (REIM) provides conviction-driven investment by local experts.
Edmond de Rothschild REIM is a European real estate investment management business and part of the Edmond de Rothschild Group. We provide fund and portfolio, investment, asset and development management and in selected markets property management services.
These services are provided on a vertically integrated basis to provide a comprehensive, efficient and cost-effective investment management offering delivered through specialist funds, joint-ventures and clubs, and bespoke client mandates, to institutions, family offices and private investors. We are active in all major sectors – office, industrial, logistics , residential and debt. With a focus on clients, Edmond de Rothschild REIM provides direct and regular access to the senior portfolio team promoting transparency and creating trust.
We operate a European network of nine offices across seven countries with 134 employees and have over €10bn of assets under management.
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. Whilst 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.
In particular tenants exposed to e-commerce and last mile delivery are expected to be relatively little affected by COVID-19.As this sector will continue to attract investors’ interest because of its exposure to structural trends, yields are expected to be stable.
OFFICE: In the short term, demand for office space will be affected by lower economic and employment growth. Overall vacancy in Western Europe is very low which will be supportive for rents. Nevertheless, negative rental growth is expected over the next 12 months. Core office buildings in city centre locations will be less affected than offices in secondary locations. Insecurity about pric-ing post COVID -19 might lead to a temporary reduction in investors’ interest and buying opportunities.
In the long run, COVID -19 is expected to have accelerated existing trends related to working habits. Flexible office space that serves as meeting places for people and that stimulates 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 provides services on a vertically integrated basis. We are convinced that providing in-depth property and financing expertise generates sustainable performance through different economic and property cycles. This also enables us to 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 mandates, and to separate asset management accounts. Our comprehensive 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 potential significant value upside.
Edmond de Rothschild REIM has excellent financing and real estate expertise across the main European property markets providing best-in-class capabilities to source, underwrite and manage the risks of the underlying investments. We only operate in markets where we have sufficient expertise, execution, management capability and track record, to ensure that we will be amongst the ‘best in class’ in our chosen areas. We therefore 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.
Strategic corporate development
Edmond de Rothschild REIM provides focused and specialist investment and asset management solutions to institutional investors, family offices and high- net-worth individuals 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.
Real estate is a sector that is very closely linked to changes in our society and our lifestyles. Amidst environmental challenges, changes in habits, the digital revolution and urban transformation, the real estate sector has to contend with the major upheavals of our time.
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 build- ings, or the renovation and energy optimisation of obsolete buildings.
Performance figures are based on the local accounting principles or IRFS and externally audited. For funds, the INREV valuation principles are applied and also confirmed by an external auditor.
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.