Edmond de Rothschild’s Smart Estate Fund signs first deal in Levallois-Perret

13th May 2019

Edmond de Rothschild’s Smart Estate Fund, which partly uses artificial intelligence to identify the most attractive investment opportunities in key European cities, has made it’s first acquisition, an office building located in Levallois-Perret near Paris, France.

This algorithm designed to analyse systematically complex market conditions and evolutions, was developed exclusively for Smart Estate by the Swiss-based FinTech AAAccell, a spin-off from the University of Zurich. The derived analysis, based on more than 8,000 economic, urban, social and financial variables, are then merged into dynamic algorithms. The use of artificial intelligence, combined with traditional research and the long-established expertise of the investment team, offers an enhanced ability to select the right sector at the right moment of the real estate cycle in the largest European cities.

About twenty local real estate partners have been selected to execute the strategy locally on the various European markets. They all benefit from a competitive edge and a recognised know-how. This “top down-bottom up” approach enables to precisely target superior asset selections within ultra-competitive markets that focus on new real estate trends, innovation and local market knowledge.

The acquisition in a vacant and obsolete building of 2,500 square meters identified by Valream, one Smart’s local partners. The investment strategy involves the repositioning of this asset through a major restructuring to respond to new trends in the work environment including flexibility of use, efficiency, energy performance, smart building connection and comfortable outdoor spaces. This building is set to become a company headquarters and will therefore fulfil the strategic requirements for a first class tenant.

“We are very happy to have entered the Paris market because the rates of vacancy on restructured or new buildings are very low. This exposure has been made possible through the collaboration with Valream, who supported us in winning our tender,” says Caroline Demol, Investment Advisor of Smart Estate.