Development of a coliving portfolio in France
Elyseum Real Estate is pleased to announce the launch of a new Luxembourg based investment vehicle dedicated to bridge and mezzanine financing for coliving projects in France.
Elyseum Real Estate has identified the financing of coliving projects in France as an attractive opportunity in terms of needs, growth, capital appreciation potential and resilience. According to reference market observers/players (L’Obsoco / Somfy / Nexity / CDC / L’Observatoire de l’Habitat 2019), 10% of the French people are interested by coliving (6.7 Million people) whereas 2,500 are available for such use. There is a significant potential growth while this new asset class is already seen as particularly resilient. In order to mitigate the risks inherent to this new sub market, Elyseum Real Estate has decided to structure the investments as financings with a first or second ranking mortgage and focus on investments involving tier-1 parties, thus limiting the risks inherent to a relatively new market.
Etienne Mouthon, Managing Partner at Elyseum Real Estate, was quoted saying: “We intend to allocate over €100 Million for this strategy. The aim is to build a diversified portfolio in terms of financing profile, mezzanine or bridge, and geographic exposure in France. The underlying investments profile would include pre-sales, conversions or pure constructions. Our risk-based approach requires the projects to benefit from pre let schemes to the best in class coliving operators and make sure that top tier design and construction teams are dealing with the developments”.
In the context of the launch of this strategy, Elyseum Real Estate is also pleased to announce the completion of the first financing for the acquisition of a 2,600 SQM mixed use retail and office building in a prime location in Versailles. The office component of the building will be converted gradually from office to coliving units with common areas that include living rooms, kitchens, libraries, gym, sauna and laundry, semi-private areas with larger lounges with open kitchen, and car parking units.
The completion of this financing confirms Elyseum Real Estate’s ability to identify and participate in the latest real estate trends, while mitigating the risks incurred by its investors. Based on its proven track record and proprietary deal flow, Elyseum Real Estate intends to further develop its portfolio of coliving development mezzanine financing over the coming years.
About Elyseum Real Estate
Elyseum Real Estate is an independent real estate investment firm based in Paris, London, Geneva and Luxembourg.
The company structures real estate investment solutions for institutional investors and family offices, both in equity and debt. We manage income generating, value add and opportunistic assets both in established and emerging markets. We operate either directly or through a network of best-in-class local partners with deep market knowledge.
Elyseum Real Estate forms part of Elyseum Investment Group, an independent investment group managing over €1.5 Billion of assets in private equity and real estate.