LBO France and Deutsche Asset & Wealth Management sell the Selec portfolio (FR)

Powerhouse France, a new investment vehicle organized and managed by TwentyTwo Real Estate, has completed the acquisition of Financière SELEC from investment vehicles managed by LBO France, and Deutsche Asset and Wealth Management’s real estate investment business (formerly RREEF Real Estate). Powerhouse France has financed the acquisition with equity provided equally by Massena Partners and Farallon Capital Management L.L.C.

Financière SELEC owns a portfolio of circa 7,600 mainly single family units with a value of circa €1 billion located across France and leased to EDF under a long term master lease agreement.

In March 2013, prior to the acquisition, the portfolio was refinanced with a €620 million, five year mortgage debt facility arranged by Natixis, 60% of which was placed by BNP Paribas Corporate Finance to institutional investors through a securitization vehicle.

TwentyTwo Real Estate was founded by Daniel Rigny in 2012, formerly a Partner of Perella Weinberg, and this acquisition represents the Company’s very first transaction.

Daniel Rigny, founder of TwentyTwo Real Estate said: “The acquisition of this substantial portfolio of residential assets represents a rare opportunity to acquire long term inflation linked assets providing attractive risk adjusted returns and an attractive cashflow for our investors. This transaction exemplifies TwentyTwo Real Estate’s ability to identify and execute sizeable investment opportunities with tailor-made capital structures across Europe.

“France will be an area of particular focus for us going forward as we are witnessing attractive acquisition opportunities in the country emerging from the current macro-economic situation. We look forward to making a number of similar income-generating opportunities in the near future, utilizing our strong local knowledge, presence and track record to take full advantage of current market dynamics on behalf of our partners and investors.”

Powerhouse France was advised by Hogan Lovells, GGSM and KPMG, and Farallon/Noonday by Herbert Smith.

Source: FTI Consulting

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