June 24, 2019
Mata Capital, a specialist in value-creation investment strategies, finalized in late April the acquisition of a portfolio of around twenty assets located in Paris and offering medium-term value appreciation potential.
In addition to the "core plus" investment strategy of the MCF Retail High Income fund, which has focused on local retail in major French urban areas since November 2015, Mata Capital launched a second fund, MCF Quality Street, in late 2018. Its objective is to acquire diversified assets in Paris (primarily retail, office, and residential) with medium-term value creation potential.
Dedicated exclusively to professional investors, this OPPCI (Professional Collective Real Estate Investment Vehicle) completed a first closing in late 2018 with banking institutions, mutuals, insurance companies, and family offices, enabling it to make its initial investments.
The fund is open for subscription until the end of the year and will then close to carry out the valuation work on the real estate assets. Mata Capital aims for a maximum of 200 million euros in investments over a 4-year period to adhere to the management team's high selectivity criteria, "an essential element for generating a target performance exceeding 8% in a market as competitive as inner-city Paris," notes Laurent Delautre, manager of the MCF Quality Street fund.
The initial asset portfolio covers an area of approximately 10,500 m² and comprises:
1 - Ground-floor retail units located in prime commercial areas (Marais, Batignolles, Monge, Grenelle Saint-Dominique, and Bastille Saint-Antoine).
2 - A mixed-use building for retail and office space located in Place Blanche in the 9th arrondissement.
3 - Two buildings leased to training organizations located in the 11th and 20th arrondissements.
4 - Residential units located in the 16th arrondissement.
5 - An independent hotel located in the heart of the 11th arrondissement.
This mixed portfolio was acquired at an average price of approximately 5,700 euros/m² from several private owners, and generates an immediate net yield of 4%.
“On behalf of the MCF Quality Street fund, we have invested in assets that generate an attractive immediate yield for Paris and offer significant value creation potential, which will be realized through renovation/restructuring operations, dynamic marketing, upward extensions, or subdivision to significantly increase rental income,” adds Laurent Delautre.