What kind of deployment strategy for MIMCO Asset Management in France?
In Q2 2021, the MIMCO Capital group significantly expanded its pan-European presence with the creation of the MIMCO Asset Management company in France. With a strong Value-Added real estate DNA in Germany and Luxembourg, the group wants to establish itself as a major player in Value-Added investment in France.
The choice of a Paris office to structure its pan-European expertise
The MIMCO Capital group has experienced strong growth in recent years. With more than 40 assets and operations (residential, office and retail) and a valuation of more than €500 million, the group has decided to structure its opening on the French market with a highly qualified team led by Christophe Nadal and Ara Adjennian. By setting up in Paris through MIMCO Asset Management, the group is entering its third geographic location and is accentuating its pan-European presence.
“By opening up to France, we are ideally positioned to benefit from a financial and real estate ecosystem with a great deal of substance,” states Christophe Nadal, co-founder and CEO of MIMCO Capital and MIMCO AM.
A development strategy based on a range of diversified and tailor-made solutions
Specialized in real estate restructuring, private equity and investment capital, MIMCO AM is in line with the regulatory changes in the market and favors an optimal holding structure for its shareholders. Through the creation of MIMCO AM, the group can now offer its investment solutions on the French market to professional investors thanks to a structured and well-regulated framework at European level.
In line with the group’s historical expertise in German and Luxembourg real estate markets, MIMCO Asset Management has chosen to offer a range of investment solutions to meet the needs of investors’ assets, whether through real estate private equity funds or club deals, all with a view to diversifying and enhancing assets in the short to medium term.
Christophe Nadal continues: “With MIMCO AM and thanks to our close attention to the market, we bring to our shareholders and partners a range of investment solutions that demonstrate our capacity for innovation. We are one of the few players capable of delivering end-to-end investment solutions and who master the entire range of real estate investment activities, with proven strength in asset and property management.”
A focus on Value-Added investments
MIMCO AM’s investment policy is clearly oriented towards value creation, made possible by the team’s specific know-how, which enables it to exploit the entire real estate value chain.
The selected assets will always present a potential for repositioning in their market, due to change of use or restructuring works.
“The current economic and financial context has further strengthened investors’ appetite for defensive assets. Real estate fulfills this characteristic. We therefore remain convinced that this asset class will remain a particularly preferred investment. Our objective is to optimize the performance and value of our assets and thus deliver a profitability in line with our investors’ demanding investment criteria”, underlines Ara Adjennian, Managing Director and Partner of MIMCO AM.
Christophe Nadal adds: “With MIMCO AM, we are anchoring our expertise in the French capital with a vision of strong long-term value creation potential, while structuring our operational organization for the benefit of our shareholders.”
MIMCO Asset Management thus provides sustainable support to investors by relying on a global expertise in value creation.
Proven real estate strategies in Germany and Luxembourg
Within the framework of diversified vehicles, MIMCO Asset Management investors will have access to differentiating real estate strategies. These strategies are based on 3 Value-Added pillars thanks to an excellent knowledge of the targeted markets:
- Yield real estate through the revitalization of existing assets in Germany. Germany remains the leading European economy and benefits from excellent stability and very controlled real estate prices. The assets and operations to be revitalized are mainly commercial, office or residential buildings. The selected assets generally have a rental income below the market rental value with a potential for value enhancement through relocation/revitalization/restructuring work. The German residential real estate market is a so-called “tenant” market, which makes it possible to build up real estate portfolios of 100% rental properties. With very low rents, this makes it an extremely resilient real estate segment.
- Real estate development and restructuring of obsolete buildings in Luxembourg. Luxembourg has a unique dynamic in Europe regarding its real estate development in the residential sector. Its political and economic stability as well as its strategic location in Europe allows to keep developing on solid fundamentals. The MIMCO Capital Group has chosen to focus on this country for several years in order to be at the heart of the opportunities that this market can offer. The two main areas of activity chosen by the MIMCO Capital Group and managed by MIMCO AM are residential real estate development and restructuring of obsolete office buildings.
- Restructuring/renovation and development/redevelopment of mixed-use assets in France. Located in the downtown areas of major French cities, these mixed-use urban projects will aim to convert obsolete retail buildings into residential or similar uses (co-living, student or senior residences, schools, etc.); the development or redevelopment of real estate projects that improve the comfort of residents with the provision of local services; the development of SRI-labeled commercial real estate projects (offices/logistics) in markets with sustained rental demand.
The MIMCO Capital group sees this French expansion as an opportunity to create real value in line with its expertise and market expectations. MIMCO AM has launched its first fund “MIMCO Grand-Ducal” at the beginning of Q3 2021. It aims to invest in real estate development operations or buildings to be restructured with high added value with a focus on Luxembourg. The second fund, “MIMCO Revitalize”, to be launched at the beginning of Q4 2021, will invest in real estate revitalization with a focus on Germany.
In addition, Club-Deals are also offered to invest in specific real estate operations, such as logistics or co-living in France and in the main European cities.