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FINANCE | 03.16.2018

MAPFRE and Swiss Life to set up a co-investment solution for prime office locations

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Swiss Life and MAPFRE will establish a real estate vehicle in the coming months that will invest in prime office locations of the main French cities and will be managed by Swiss Life Asset Managers, Real estate France.

MAPFRE is the largest multinational insurance Company in Latin America and the benchmark insurer in Spain. Swiss Life has more than 160 years of experience and is one of Europe’s leading comprehensive life and pensions and financial solution providers.

Swiss Life Asset Managers, covering all asset management activities of Swiss Life Group, is one of the leading pan-European real estate asset manager with €69.2 bn of managed assets as of end of 2017 (including asset management for third parties). In France, Swiss Life Asset Managers, Real Estate, is represented by the AIFM Swiss Life REIM (France) which will be the management company of the new vehicle.

This Fund will invest in prime offices in the main French cities with a first size target of up to €150 million of equity, and the objective is to achieve returns of between 4% annually within a period of one to two years.

Swiss Life will seed the vehicle with 2 assets. This initial investment of €75 million consists in 2 typical “Haussmanien” buildings located in Paris CBD. Other investments are planned, the objective being to quickly move forward and invest significantly in pan-European real estate.

This move is part of MAPFRE’s strategy to diversify its portfolio against other types of financial assets and gradually increase its alternative investments.

On this operation, MAPFRE and Swiss Life have been advised by IDBO Consultants in Spain and Philinx Consulting in France.