Mon, 04 Mar 2013 | COMMERCIAL PROPERTY
Beny Steinmetz has created a $2 billion London-based venture focused on snapping up distressed properties in Europe.
The diamond mining entrepreneur and Israeli billionaire, Mr Steinmetz, has brought in Chris Papachristophorou, who was previously the head of real estate at Deutsche Bank’s fund management arm RREEF, to manage the business.
The business, called Invel Real Estate, will buy up offices and shops needing financial help and redevelopment, and will be run as a subsidiary of the Beny Steinmetz Group (BSG), which owns diamond, gold and nickel mines across West Africa and the Balkans.
BSG is to give Invel $400 million to get started. The business will then work on bringing in investors for individual properties, rather than going down the more traditional private equity fundraising route.
Mr Papachristophorou told the Financial Times: “A lot of people are wanting to invest in European real estate at the moment but are concerned by the eurozone crises and want some clarity on what they are buying. That means two things: they want to co-invest with people who know the market well and they want visibility over exactly which assets they are buying, rather than being in a commingled fund.”
The Europe-wide rise in poorly performing businesses in the recession and governments seeking to sell off properties to generate much needed capital, has proved to be highly attractive to US private equity firms and sovereign wealth funds over the past two years looking to expand their presence and increase their property portfolios.
____________________________________________________________________________
Related news:
Find distressed business opportunities at the right time
Opportunity to acquire a well-established advisory firm in London with a robust portfolio of £260 million funds under management, offering potential for growth and expansion.
Opportunity to acquire a well-established IFA business in North Yorkshire, ideal for those looking to expand their financial services portfolio.
An exciting opportunity has arisen to acquire a well-established South-West based Independent Financial Adviser (IFA) business, renowned for its comprehensive financial planning services and strong client relationships.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.