French asset manager Primonial REIM has unveiled plans to build up a €4 bn residential property portfolio across Europe over the next three years, up from €800 mln at present.
In a statement this week, the company said that it plans to increase the residential share of its portfolio from 6% at year-end 2017 to 20% by mid-2021, while maintaining its overall target of €20 bn in assets under management, across all asset classes.
Primonial REIM currently manages €14 bn of real estate assets, largely office and healthcare properties.
‘In just two years we have become one of the leading managers of healthcare real estate in the Euro zone,' commented Primonial REIM’s Chairman Grégory Frapet. 'We believe that there are considerable opportunities in the residential real estate market in this region and our ambition is to become a leading player in this segment as well. Over the past two years we have created a dedicated team of experts in this asset class, who are able to pick the best opportunities in the market.'
Last year the company made its largest acquisition in the residential sector to date with the purchase of a €400 mln portfolio in Marseille. Primonial said that it is currently considering further housing transactions in France and elsewhere in the Euro zone.
The French company has created a decision-support toolkit called ‘Euro City Ranking’ that provides a ranking of European cities, with projections of their potential development. It is aimed to help the group’s teams to focus on the areas that offer the best prospects, according to the Primonial REIM’s parameters.