AEW launches its first dedicated residential fund with €100m first close
AEW announces the launch of the RESIDYS Fund (“RESIDYS” or the “Fund”), its first fund dedicated entirely to French residential real estate. AEW has completed a first close for the Fund raising over €100 million from institutional investors.
The Fund is targeting equity commitments of up to €400 million which will provide the Fund with a total investment capacity of approximately €650 million, assuming a maximum loan to value of 40%. AEW has exchanged on the Fund’s first acquisition and a number of further investments are already in the pipeline.
Stéphane Sebban, Fund Manager of RESIDYS, commented: “Our objective is to assemble a high quality, well-balanced portfolio of French residential assets, comprising existing properties, developments and alternative housing (c.25%), including senior housing, that are located in French cities that we believe are most likely to benefit from strong, positive demographic and urbanization trends. The Fund is targeting a 4% income yield once fully invested.”
Raphaël Brault, Head of France at AEW Europe, added: “The expansion of our fund management activities is continuing apace and, with over €1.5 billion of residential assets already under management, RESIDYS provides an opportunity to further leverage our specialist residential expertise. Our residential activity is gaining momentum, helped by the appointment last year of Sébastien Znaty as Head of Residential Asset Management, as we maintain our focus on generating sustainable and stable cash-flows, as well as delivering capital growth, for our investors.”
Source: AEW Europe