Edmond de Rothschild REIM finances Paris property development through its rapidly growing Real Estate Debt Fund
Edmond de Rothschild REIM finances the acquisition and conversion of a commercial property in the centre of Paris into a residential property with highest ESG-standards via Mezzanine bonds while its European Real Estate Debt Fund continues to grow to more than EUR 100 million.
Edmond de Rothschild REIM, via its European Real Estate Debt Fund, has provided mezzanine financing for the acquisition and conversion of the former Renault car showroom and industrial property on the banks of the river Seine in the 15th arrondissement in Paris. The property is located 650m from the Eiffel Tower. Euronext-listed developer Capelli and co-developer Imm’Extenso acquired the asset following a tender process organized by the vendor Renault and the city of Paris.
The project is part of the “Réinventer Paris 3” program and will convert the existing commercial property into a residential asset totaling 7,310 sqm with the highest energetical standards. Approximately 2/3 of the area will be dedicated to private and social housing and 1/3 will be dedicated for a school in the ground and first floor. The conversion is expected to be completed in 2024 and will include the construction of a tower on top of the existing seven-storey building, offering spectacular panoramic views over the Eiffel Tower, the Seine River, and the Paris cityscape.
Edmond de Rothschild REIM is providing the mezzanine financing through its Luxembourg-based European High Yield I Real Estate Debt Fund. The Senior Acquisition Loan was provided by SOCFIM and BRED Banque Populaire.
Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, said: “With its third debt capital investment after our first two financings in Berlin and Amsterdam, the team has successfully structured a mezzanine financing for a prestigious property in a sought-after submarket in the centre of Paris. Backed by a strong pipeline and attractive lending opportunities across Europe we continue to do fundraising in our Fund and grow the Real Estate Debt Business”
Concurrently to the Paris financing transaction the team completed another equity closing in its pan-European High Yield I Real Estate Debt Fund with investors arranged through the Edmond de Rothschild Private Bank taking the current equity commitment in the Fund to above EUR 100 million. Final closing of the Fund with a target size of EUR 300 million is no later than December 2022. The Edmond de Rothschild REIM Real Estate Debt Team is also acting as an investment advisor on a EUR 180 million separate fund dedicated to a German insurance group.
Edmond de Rothschild's Real Estate Debt team is part of Edmond de Rothschild's pan-European real estate investment management platform, which has over EUR 12 bn of assets under management and more than 120 staff in 7 European countries.
Edmond de Rothschild REIM was advised by the team led by Privat Vigand at Dechert (Paris) LLP. SOCFIM and BRED Banque Populaire were advised by Jean-Maurice Gaillard at Archers and Me André Hebert, notary at HEBERT et 137 Notaires, Paris.
The Edmond de Rothschild Real Estate Debt – European High Yield I Fund is a closed-ended fund domiciled in Luxembourg in the form of a SCA SICAV-RAIF. Alter Domus is the Alternative Investment Fund Manager.
The Edmond de Rothschild Real Estate Debt Fund is exclusively reserved for professional investors and may be subject to restrictions for certain persons and in certain countries. The Fund does not guarantee or protect the capital invested, so that investors may not get back the full amount of their capital, originally invested even if their units are held for the recommended investment period. Any investment in the Fund is associated with certain risks, not limited to liquidity risk, concentration risk (investments in real estate) and currency risk. Any investment in the Fund may only be made on the basis of documents and information that comply with the applicable regulations.