February 24, 2022
Mata Capital, announces the launch of a new fund titled MCF Office Income for its institutional clients whose investment strategy core plus is focused on office properties.
Mata Capital, recognized for its counter-cyclical strategies, is convinced that the market environment remains favorable for investing in this essential asset class, which has been impacted by the health crisis and significant environmental challenges.
An offering focused on the future of office spaces and value creation
With a cumulative experience of over 300 transactions representing nearly 9 billion euros invested in France, and comprising a team with a solid track record, Mata Capital aims to continue developing and offering alternative real estate investment strategies.
Historically active in the retail asset class through its MCF Urban Convenience fund, Mata Capital has now chosen to launch a core-plus strategy for office properties, convinced that the French market still holds real estate opportunities aligned with the needs of investors and users.
Office properties indeed remain the leading asset class in terms of investment volumes in commercial real estate in France (€15.7 billion invested in 2021), and they withstand economic and health fluctuations provided they are well-located, flexible, and capable of adapting to new uses and the latest environmental standards.
MCF Office Income will focus on the three most dynamic markets in France: Greater Paris, Greater Lyon, and Greater Lille, and will place user-sought centrality criteria at the heart of its strategy. The objective will be to build a real estate portfolio with strong potential for value enhancement and asset appreciation, by investing in well-located properties leased below market rates.
This new fund will also pay particular attention to the societal and environmental impact of its real estate portfolio, ensuring it fully meets new uses and the latest technical and environmental standards, particularly concerning the Tertiary Decree.
MCF Office Income targets a total annual performance of 6.00%, including a 4.50% distribution. This fund offers no capital guarantee and presents a risk of illiquidity.
Initial investments already made, encouraging early performance
Six office buildings have already been acquired or are currently being acquired by MCF Office Income in Paris, the Paris Region, and Lyon, representing a total investment of over 70 million euros.
Nearly fifteen tenants already comprise the real estate portfolio, thereby providing the fund with good diversification of rental risk. Indeed, over 3.5 million euros in rent will be under management as of March 31, 2022, with an estimated positive reversion potential of over 20%. The real estate portfolio is currently 100% leased, at an average rental value of €130/sqm.
Building on these initial investments and the significant revaluation of its assets as of December 31, 2021, MCF Office Income generated a total performance of 14.20% in 2021, including 11.75% capital appreciation (past performance is not a reliable indicator of future results).
“We are very pleased to offer our institutional clients this new core-plus fund focused on the office asset class, which remains essential and is undergoing significant changes. We strongly believe in the potential to find good real estate opportunities in this asset class, provided we are extremely vigilant about locations and rental values, anticipate new user behaviors, and integrate the environmental dimension of the Tertiary Decree.”