Primonial REIM devises, structures and manages long-term collective real estate investments intended for individual and institutional investors. Primonial REIM manages €42bn of assets, 61 investment funds and more than 1,695 buildings in Europe. Our teams are made up of more than 450 employees located in six offices in France, Germany, Luxembourg, Singapore, Italy and the UK.
A LEADING ASSET MANAGER IN EUROPEAN HEALTHCARE REAL ESTATE
- A pioneer in healthcare real estate investment in Europe.
- A proven track record with in-depth knowledge of the main European markets.
- Local teams in the main European markets.
- Strategic partnerships with leading healthcare operators, with high-quality property developments and privileged access to off- market opportunities.
Strategic corporate development
A LEADING PLAYER IN HEALTHCARE REAL ESTATE CLOSELY ALIGNED WITH OPERATING PARTNERS
Primonial REIM: Europe’s Premier Healthcare Real Estate Leader
As pioneers in the healthcare real estate market, Primonial REIM has been a key player in this segment since 2012. Today, we proudly stand as the undisputed leader in European healthcare real estate, boasting the following achievements:
Primonial REIM holds a significant position in the European real estate asset management landscape, with a total of €42bn in assets under management. We have dedicated teams based in France, Germany, Italy, Luxembourg, the UK and Singapore.
- Managing over €19bn in assets within this asset class.
- A portfolio spread across six European countries and diversified across all types of healthcare real estate, including laboratories, clinics, senior residences, nursing homes, and more.
- A proven track record and an in-depth understanding of the major European markets.
- Established strategic partnerships with key healthcare operators, ensuring high-quality real estate transactions and privileged market access.
Sector forecasts
INDUSTRIAL: European and national authorities have expressed their desire to relocate certain ‘strategic’ industries to make supply chains more resilient in the event of crises, by diversifying suppliers, raw materials, production and transport. This strategic repositioning will feed into demand for logistics assets. Meanwhile, retailer users are still likely to benefit from the strength of e-commerce even though the growth in penetration rates is likely to be less strong following the peak seen during the pandemic. The logistics sector will face different challenges over the coming years. First, investments will have to be made in digitisation and robotics in order to improve supply chain effi- ciency and optimise the use of space. The obsolescence of those buildings that have not made the transition will accelerate. Secondly, the ESG transition in logistics is a challenge as the sector is cost driven, which could rapidly become a negative point for obsolete buildings.
OFFICE: Returns are likely to see adjustments in 2023 due to higher bor- rowing costs, requirements for energy renovation of buildings and higher construction and renovation costs. One of the other challenges is the impact of hybrid working on demand. However, given the rising trends in job creation and office work between now and 2028 and the pressures from increases in retirement ages, we expect that these factors will boost demand for space from users.
RESIDENTIAL: The residential market has positive fundamentals. The imbalance between demand for housing and its supply will rapidly fuel a return to price growth as part of a marked uptick in transactions under the combined effect of an easing of borrowing conditions, a reduction in inflation- ary pressure on real household incomes and the stagnation or even reduction in borrowing rates. The continued growth in the number of households is another factor in favour of European residential real estate. This situation helps underpin demand in both the rental and home purchase markets, in line with household resources. Regarding ESG issues, the residential sector faces tighter regulations to meet energy consumption standards and carbon reduc- tions (with a ban on letting apartments where the energy performance audit is below a certain level). Lastly, under national or local legislation, the European residential market is regulated to provide protection to tenants. Indexation, which is generally linked to the consumer price index, provides total or partial protection against inflation.
RETAIL: Thanks to the good health of the eurozone labour market, wage growth and continued robust savings levels, consumer spending will help bolster retail sales. However, some risks persist given the level of economic uncer- tainty. In the event of a reversal of growth, the labour market could be affected, encouraging households to build up precautionary savings at the expense of consumer spending. This would affect retailers and could therefore have knock-on effects on rents. However, there are also balancing factors for retail. We believe that the winning cities in the future will be those that are highly attractive to international travellers and those organising major international events such as the Paris Olympics in 2024. Forecast revenue growth at retailers in these markets is already seen as a future support to rental growth. In general terms, ‘bricks and mortar’ retail will need to continue to manage the balance with online sales.
HEALTHCARE: The imbalance between supply and demand in care and residential provision will persist over the coming years. We know that demo- graphic pressures will remain strong and will continue to increase well beyond 2028. In many European countries, a significant share of healthcare expenses is covered by public and/or private sector insurance. The sector therefore has solid fundamentals on its side. The obsolete group of care homes will need ren- ovation to meet ESG criteria and protect their occupants, particularly during heatwaves. Lastly, the shortfall of supply in the market represents a powerful driver of investment in recent, well-located assets with a solid operator.
Investment principles & strategy
Primonial REIM is able to invest in every asset class.
Primonial REIM devises and implements investment strategies on behalf of its institutional and individual investor clients.
We make investments in every asset class for these clients:
In France:
- Core/core+ office assets located at the heart of Greater Paris, ie, ‘head office buildings’ occupied by major corporate clients.
In the eurozone:
- Healthcare/education establishments under long-term lease to pan- European operators
- Residential assets located in major European cities where there is a rental housing shortage
- High street shops in prime locations
- Budget hotels backed by major operators.
Performance verification
The performance of some of our funds and assets is compiled, calculated and verified by MSCI.
COMPLIANCE STATEMENT
Each of our entities has a designated compliance officer. All regulated issues are subject to compliance approval. The Data Protection Officer of Primonial REIM supervises and ensures all entities are compliant regarding the GDPR issues.
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