Investment strategy
Praemia REIM France continued its diversification strategy by entering the hotel trade sector in 2019. In addressing these new asset classes, Primordial REIM responds to the demands of institutional investors for an increase in the share of ‘alternative’ properties in their allocations.
To this end Praemia REIM France is currently putting together a dedicated management team and has made ties with experienced partners able to support their development ambitions on a European scale.
An initial institutional hotel trade trust “Praemia REIM Hospitality” was structured in 2019 in partnership with the B&B Hotels Group, with a global investment volume of €400 Million, for a property investment return on acquisition of 5.14%.
A second operation was completed in Germany, on behalf of trusts managed by Praemia REIM, through the acquisition of a portfolio of 4 hotels run by Crown Plaza and Holiday Inn for a total of €200 million, for a property investment return on acquisition of 5.13%.
Consequently, at the end of 2019, Praemia REIM France had €700 Million in assets under management for this asset class in France, Germany and Italy.
- Market review
Real Estate Convictions : Q4 2024
The continued reduction in ECB interest rates, the level of savings amongst Europeans and the recovery of the real estate markets between 2022 and 2024 all point to the potential for improvement and a rebound in the sector.
- Market review
Real Estate Convictions : Q3 2024
In October 2024, the ECB announced its third consecutive rate cut to ease its restrictive monetary policy, and we believe that a new momentum has opened up for the European real estate market. Indeed, this quarter we have seen a thaw in certain real estate indicators.
- Market review
Real estate convictions : 1st quarter 2024
For now, European real estate professionals have been cautious and are watching for the tipping point that could occur with the announcement of the first change in direction by the ECB.
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