Edmond de Rothschild launches new vehicle for commercial real estate
The investment manager has raised CHF 54 million and sees a good time to build up a new portfolio of commercially used properties in Switzerland.
In 2007, Edmond de Rothschild REIM Suisse launched the "Orox Capital Investment" fund for commercial real estate in the Value-Add and Core+ segment, where it now manages around CHF 700 million on behalf of Swiss and foreign investors. The investment manager is now entering the market with a strategy for qualified investors in the Core/Core+ risk class with Swiss commercial real estate. The focus is on stable and recurring income with a distribution yield of around 4.5% per year and a total return of 6% per year, Edmond de Rothschild reports. Investors are currently focusing mainly on residential real estate, while "opportunities at historically attractive market conditions" can be seized in commercial real estate, according to the report. High demand on the rental market combined with a limited supply of high-quality properties in good locations is also currently in favor of this segment. Investments are planned in modern office buildings, commercial properties, industrial and small logistics properties as well as in commercial properties such as hotels, student and senior residences and schools. The critical mass of CHF 500 million is to be reached within five years in order to be able to aim for a listing on the SIX Swiss Exchange in the long term.
According to the information provided, CHF 54.4 million has already been raised in an initial financing round. Edmond de Rothschild intends to invest almost CHF 100 million over the next three to six months. "We are very pleased that we can count on our long-standing and solid group of investors and are convinced that
We can offer them a differentiated investment solution for building a new real estate portfolio in a favorable market environment," says Arnaud Andrieu, Co-CEO of Edmond de Rothschild REIM. The commercial asset class offers protection against currency erosion thanks to the pegging of rents to the inflation rate, says Jonathan Martin, Managing Director & Head of Fund Management at Edmond de Rothschild REIM Suisse. (aw)
