French investments in Spain

The french fund Atland launches a new SOCIMI and debuts with a purchase in Spain

New player in European real estate. The French fund Atland Voisin has just launched a new socimi, épargne Pierre Europe, with its sights set on Europe. The company, with a strategy totally focused on investing in the main European cities, has made its debut with a purchase in Spain and another in Holland, as explained by the company to idealista/news.

The idea of this management company is to replicate on a European scale the success of its socimi épargne Pierre in the regional markets of France. To this end, Atland Voisin has just recruited Arnaud Sournia, ex-BNP Paribas Real Estate, as investment director for Spain and Benelux.

The first assets acquired by the socimi are located in Spain and the Netherlands. In the Spanish market, the fund has bought a Dia supermarket in a residential area of Barcelona. In the Netherlands, the fund has acquired a mixed office and retail asset, recently refurbished in a tertiary area near Rotterdam. The company has invested EUR 6 million in the purchase of these two properties.

Atland's interest in Spain follows in the wake of other French operators that have committed to the country in their investment roadmap. If in recent months it was Iroko Zen that had carried out several purchases in the country, last November it was joined by the investment manager Remake, through its socimi Remake Live, with the purchase of six retail properties spread across medium-sized parks throughout Spain for 47 million euros, as reported by idealista/news.

Remake Live acquired these assets under the 'sale&leaseback' formula, which means that the current tenants will keep their rental contract for at least the next three years. Among the companies currently leasing these premises are Sports Direct and Prenatal, which operate stores located in more industrial areas or medium-sized parks.

These assets are located in Madrid, Valencia, Barcelona, Malaga and Pamplona and between them total more than 21,200 m2. The six properties are located on the outskirts of these cities, although they are in important areas of affluence and very well connected to the center of the cities.

Remake Live is a SCPI (the figure comparable to a Spanish socimi) created in early 2022 that aims to reconcile utility and performance by capitalizing on key values such as the revitalization of landlocked areas with high added value, the development of neo-offices and the promotion of projects with a strong social impact. This translates into a diversified investment strategy: offices, retail, leisure, healthcare... and also in social residential within emerging territories.

Remake Live targets urban areas with more than 250,000 inhabitants throughout France and in European Union countries. It is committed to the long term and prefers investments in territories in continuous evolution, with potentially higher rental yields and long-term valuation.

Remake Live is specially created for the small investor, so it has no subscription fees. In return, the manager "charges" a 5% fee, and an 18% management fee on rents. It targets a projected payout rate of 5.5% per annum (non-guaranteed target) with dividends paid monthly.

Remake Live currently has a portfolio split between France (57.1% of assets) and Spain (42.8% of assets). Of these, 42.9% are offices, while 33.4% are retail and logistics accounts for 18.2%. The rest of the portfolio is made up of alternative assets and healthcare assets.

Author: Custodio Pareja

Translation from article posted in Idealista.com (link above) on January 16, 2023