Pictet raises EUR700m for first real estate fund
Pictet Alternative Advisors SA (PAA), the Pictet Group’s wholly-owned alternative investment firm, has closed its first direct real estate fund, Elevation I, at its hard cap of EUR700 million.
The fund applies a value-add strategy and has already completed the acquisition of three ‘last-mile' logistics assets in the Greater London area and a prime mixed-use building in Madrid.
The vehicle has a focus on key gateway cities in Germany, Spain, the UK and Nordics and seeks to improve the sustainability of the acquired assets by using PropTech tools throughout the investment process.
Launched in Q2 2019 with an initial target of EUR400 million, the fund witnessed excess demand and was significantly oversubscribed. The investor base is approximately two-thirds HNW clients and one-third institutions, including insurance firms and pension funds from Europe and Asia.
In Madrid, Elevation I acquired a mixed-use asset on the Castellana, one of the prime locations in the city, with a view to improving its environmental footprint and a subsequent lease-up of the building.
In Greater London, the vehicle acquired three last-mile logistics centres as part of a strategy to build a network of such hubs across London.
Zsolt Kohalmi, global head of real estate and Co CEO of Pictet Alternative Advisors, says: “We appreciate the strong support of our institutional and private investment partners.”
“Real estate investing is undergoing a significant transformation due to changes in technology, sustainability goals, and the ‘Hotelisation’ of real estate, which will provide value-add opportunities for active managers in the coming years.
“We strongly believe in the growth of private assets within Pictet, and we will significantly expand our investment activity in this space in the coming years.”
Elevation I is managed by a team of 14 and led by Zsolt Kohalmi, who joined from Starwood Capital, where he was Head of Acquisitions in Europe. Kohalmi has more than 20 years of experience closing transactions worth 20 billion dollars during his career.
The fund is supported by local real estate country heads in six offices in the UK, Germany, Sweden, Spain, Luxembourg and Switzerland.
“As a competitive advantage we can leverage the Pictet network next to our own capabilities to source interesting opportunities and deals that investors would otherwise find hard to access,” says Charlie Baigler, Head of Acquisitions at Pictet.