July 23, 2020
Mata Capital, an independent real estate fund management firm, announces the closing of the MCF Quality Street fund as of June 30, 2020, with total capital commitments of €50 million, enabling it to make €100 million in investments in Paris. This fundraising was completed with leading French institutional investors and family offices.
Launched in late 2018, MCF Quality Street is a core-plus fund aimed at acquiring, exclusively within central Paris, diversified real estate assets with medium-term value creation potential. This vehicle has already made investments totaling €55 million at an average price of €5,100/sqm and will continue to invest in Paris over the coming months.
“We have secured significant capital commitments despite the COVID-19 pandemic and would like to thank all our investors for their trust over the past few weeks. The committed capital will allow us to execute our high-quality pipeline under current market conditions favorable to buyers,” comments Edouard Baduel, Head of Investor Relations at Mata Capital.
Among the investments made on behalf of the MCF Quality Street fund are several ground-floor retail units located in Parisian shopping districts (e.g., Marais, Batignolles...), a mixed-use retail/office building located in Place Blanche (Paris 9th arrondissement), educational facilities (Paris 11th and 20th arrondissements), and an independent hotel located in the heart of Paris's 11th arrondissement, with an overall portfolio occupancy rate of 97%.
Almost all these assets offer value creation potential, which will be realized through renovation, expansion of surface area, change of use, and rent de-capping to significantly increase rental income. “Beyond the prime location and the diversity of assets in the MCF Quality Street fund, our investors particularly appreciated having privileged access to off-market deals traditionally reserved for property dealers and private operators in Paris,” states Edouard Baduel.
The fund targets a total return of 8.0% over 8 years, including an annual distribution of approximately 4.0%.
The current real estate climate in France should allow Mata Capital to fully implement its acquisition strategy and execute attractive transactions. “The French market is expected to offer excellent investment opportunities due to a probable increase in the number of distressed sellers in the medium term, so we aim to strengthen our positions in the ‘core-plus’ and value-add segments in the medium term,” concludes Edouard Baduel.