To diversify its real estate portfolio, Sofiouest, an investment and holding company, has subscribed to the FCPR Anaxago Society One, a fund dedicated to real estate private equity with an expected average net return of 8% over 5 years.
The search for different yields, over short and medium-term periods, is a fundamental balance to strike when managing an investment portfolio. With this in mind, Sofiouest, an investment and holding company, has just subscribed to shares in the FCPR Anaxago Society One launched by Anaxago Capital, a French management company dedicated to real estate private equity and venture capital.
The Anaxago Society One fund, dedicated to real estate development and rehabilitation, was launched in early 2019 and has just completed an initial closing of €10M, with Sofiouest contributing €2M. Anaxago Society One is aiming for a final closing of €30M to invest in a portfolio of 20 to 40 real estate development, rehabilitation and property merchant programs, located mainly in France, but 25% of which may be located in Europe.
Anaxago Society One specializes in the fast-growing market for the conversion of existing real estate assets. For example, almost 40% of the commercial real estate stock in the Paris region is over 80 years old, which means that redevelopment is now a real environmental challenge[1]. The fund aims to expand in regions with strong economic and demographic dynamism (Ile-de-France, Rhône-Alpes, New Aquitaine, etc.). Another activity is the development of reconversion programs to meet new needs: mixed-use housing and commercial activities, coworking, serviced residences for the elderly, etc.[2].
Expected average IRR of 8%.
Its average net IRR target is 8%, with a much shorter asset holding period (18-20 months) than most real estate investments. In addition, a minimum of 30% of investments must comply with Anaxago's ESG (environmental, social and governance) charter.
This investment bridges the gap between our private equity and real estate activities," explains Patrice Hutin. Anaxago Capital allows us to diversify our portfolio while meeting our requirements, as it has specialized in the most buoyant segments of the real estate market with a solid return."
"The support of leading professional investors such as Sofiouest for our first fund is a strong sign, as it validates the interest in our positioning in the development and rehabilitation market, which has shown its resilience," emphasizes Joachim Dupont, Chairman of Anaxago Capital.
In a context where structural needs are tending the real estate market to grow, particularly for housing, logistics warehouses or even offices adapted to new uses and environmental issues, our team is already hard at work to complete around fifteen investments by the end of 2019."
Strong expertise in real estate and venture capital
Anaxago Capital does not invest directly in real estate or SCPIs, but co-invests in project companies, for example for real estate rehabilitation.
Anaxago Capital uses some forty in-house analysis and scoring tools to select investments.
