Invesco Real Estate has completed its first residential investment in France in a forward funding deal. The acquisition in Bossey, located on the Swiss/ French border, has been made on behalf of the firm’s recently launched European Living Fund. The development consists of 115 high-quality, modern, and sustainable grade-A units across a total area of c.7,100m² set to complete in Q4 2023. The acquisition increases Invesco’s exposure to the European residential sector, a key strategic growth focus for the firm. Including this latest transaction, the firm’s allocation is now 35 investments consisting of over 8,310 units spread across nine countries.
Bossey is part of the Genevois Français, a cluster of affluent towns in France near Geneva. More than 45% of workers in this area cross the border each day to take advantage of Switzerland’s higher salaries. Bossey’s average annual income per capita is more than twice the French national average and the town, 20 minutes from Geneva, offers very competitive rents below Geneva price levels.
Cristiano Stampa, Managing Director, Transactions at Invesco said: “Bossey is an excellent location for Invesco’s first residential development in France and supports our aspirations in the fast-developing Build-to-Rent market. Genevois Français’ high quality of life coupled with its proximity to attractive employment opportunities has seen a growth in the prices for new apartments in the area by 30% over the past decade, a much faster rate than neighbouring metropolitan areas. We expect strong demand for these apartments which have a tenant-centric design and a compelling sustainability profile.”
William Ertz, Senior Director, Fund Management at Invesco commented: “The fundamentals shaping the private residential market in Europe continue to be highly attractive for investors and we expect strong interest in the sector from institutional investors in 2021 and over the next decade. We are confident that our European Living Fund is very well positioned to meet this demand, which has been proven by this acquisition.”