Paris-based asset manager AEW Europe has raised €100 mln in an initial close for Residys, its first institutional fund dedicated entirely to French residential real estate.
The fund is targeting equity commitments of up to €400 mln, which will provide Residys with a total investment capacity of €650 mln, assuming a maximum loan to value of 40%.
'Our objective is to assemble a high quality, well-balanced portfolio of French residential assets, comprising existing properties, developments and alternative housing, including senior housing, that are located in French cities that we believe are most likely to benefit from strong, positive demographic and urbanisation trends,' said Stéphane Sebban, fund manager for Residys.
AEW has already exchanged on the fund's first acquisition and a number of further investments are already in the pipeline. The fund is targeting a 4% income yield once fully invested.
'The expansion of our fund management activities is continuing apace and, with over €1.5 bn of residential assets already under management, Residys provides an opportunity to further leverage our specialist residential expertise,' said Raphael Brault, head of France at AEW Europe. 'Our residential activity is gaining momentum, as we maintain our focus on generating sustainable and stable cash-flows, as well as delivering capital growth, for our investors.'
AEW Europe, the real estate asset management platform of Natixis Global Asset Management, manages €19.3 bn of real estate assets in the Continent.