SELF II, exclusively dedicated to certain institutional investors who meet the “Well Informed Investors” definition, has completed its 4th investment with a participation of €35m in the financing of a portfolio of retail assets located in France. The fund has already invested €105m or more than quarter of the equity raised.
The transaction comprises a senior loan with respect to a portfolio of 11 retail assets in France in prime locations in Paris, Lyon, Marseille, Cannes and St. Tropez.
These assets are leased to a number of large luxury brands (Dior, Prada, Yves Saint Laurent and Chanel) and international cosmetics and ready-to-wear brands (Marionnaud, Sephora and H&M).
Arnaud Heck, co-head of the Real Estate Finance Platform commented: “Ambassadeurs is our second investment in the retail sector and our second in France. We are targeting a sustained investment program that will create a significant diversified portfolio for the Fund based on our current pipeline. The loan represents a relatively limited risk with an average LTV3 on the portfolio of around 60% and an interest coverage ratio over 300%.”
Cyril Hoyaux, co-head of the Platform added: “We consider that Ambassadeurs is a rare opportunity to invest in a funding that covers a high quality retail portfolio with prestigious locations, strong tenants and an adequate financing structure. We believe that risk adjusted returns are attractive for our investors and in line with the targeted returns of SELF II of over 2%”.
