Primonial Group launches social infrastructure fund

Frankfurt am Main / Paris, 04.06.2020 – Primonial Group, a leading real estate asset manager with over €26 billion under management, together with its local German partner AviaRent Invest AG,  has launched ESI, a pan-European open-ended real estate fund dedicated to social infrastructure, including healthcare, educational facilities and affordable housing. ESI aims to have €1 billion in assets under management by 2022, and currently has around €450 million invested or in the process of being invested.

As a leading European asset manager in the healthcare and educational real estate industry, Primonial Group is fully familiar with social infrastructure assets and their dynamics. The Group has a foothold in several European countries, so is able to address each market with a local approach utilizing local expertise, and enjoys preferential access to investment opportunities.

The ESI fund caters to both local and international institutional investors looking to receive recurring income and grow their invested capital over the long term, and is aiming for a target annual payout rate of 5%.
The fund will invest across Europe in regions with solid fundamentals, with a focus on Northern Europe, which will account for 80% of its target allocation.

The healthcare compartment will secure recurring income thanks to long-term leases signed with top-tier healthcare firms (operating nationally or Europe-wide), while the educational and housing compartments will potentially offer capital growth by selecting locations with attractive fundamentals in terms of demographic trends, rental demand and prices or rents.
The ESI fund’s portfolio already includes 23 healthcare assets in Germany and Austria with a value of €293 million.

“ESI includes top-quality assets in geographic locations boasting solid fundamentals,” says AviaRent Managing Director of Relationship Management, Hannes Ressel. “We will maintain this very selective approach in regard to all future investments.”

The new fund reflects Primonial Group’s efforts to grow its social infrastructure real estate activities throughout Europe, and its determination to offer its institutional clients an opportunity to invest in portfolios combining solid financial performance and ESG criteria.