One year after its client-focused reorganisation and the arrival of Philippe DEPOUX as Chairman, La Française Real Estate Managers (REM) announces solid growth of its real estate activity in 2021, despite the apprehension of some international investors due to the economic uncertainty created by the health crisis.
For 2021, La Française REM has forecast gross inflows of nearly 2.5 billion euros, bringing its assets under management to more than 29 billion euros, an increase of more than 9% compared to 2020. The management company has exceeded its record level of inflows recorded in 2019 on its range of collective real estate investment vehicles and attributes this momentum to the implementation of its strategic road map which emphasises in particular:
- the relevance and effectiveness of the asset management of the real estate portfolio;
- changes to the range of investment vehicles in terms of sustainability, meeting new investor requirements;
- a diversification strategy aimed at new asset classes, which should be profitable in the post COVID-19 world, focusing on logistics, senior housing and health care real estate and a strengthened presence on international markets, namely in Germany, Luxembourg, Belgium, the Netherlands, Ireland and the United Kingdom;
- innovation in terms of accessibility and development of investment solutions.
Asset management
The appeal of the investment solutions offered by La Française REM lies in particular in their capacity to effectively navigate an unprecedented storm, such as the one we have just experienced. The real estate assets managed by La Française REM consist of around 65% offices, 10% retail, 10% residential/managed residences, 10% logistics and 5% diversification products (vineyards, hotels, other). The rent collection approach adopted by La Française REM, which can be summed up in a selective and negotiated support policy or in a firm approach to large tenants, has made it possible to maintain a good collection rate of rents, as is the case for the collective real estate vehicle product range managed by La Française REM which at the end of November had collected 95% of the rents billed since the beginning of the year.
Philippe DEPOUX, Chairman of La Française REM, added: “La Française REM is a set of professions that creates value for the end investor. Today, the asset management teams are in the spotlight. Each m2 is managed as well as possible. We are building our asset management strategy around three main areas, namely sustainability (ESG), flexibility and service-based options. The close relationship and professionalism of our teams as well as the quality of our real estate portfolio has allowed us to navigate this unprecedented period with confidence. With 300,000 m2 let or re-let in 2021, a financial occupancy rate of nearly 93% over the year, we have maintained the performance of our real estate investment vehicles for the benefit of investors. Going forward, we will continue to support our tenants with the newly created Tenant Services Transformation Unit. In 2022, we will gradually roll out a rental offer focused on flexible occupancy and service-based options.”
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