Tikehau Capital to Acquire Leading French CRE Firm

The transaction, which predominantly involves office and retail properties, will increase the alternative asset management and investment group’s portfolio from approximately $3 billion to $8.6 billion.
26-28 rue de Winchester, Saint-Germain-en-Laye, France
26-28 rue de Winchester, Saint-Germain-en-Laye, France

Paris-based Tikehau Capital is laying the groundwork to acquire Sofidy, a leading real estate asset management firm headquartered in the suburban Paris municipality of Évry Cedex. Tikehau, an alternative asset management and investment group, recently announced that it is in exclusive negotiations to become one with Sofidy, which, with a management portfolio valued at €4.8 billion, or approximately $5.6 billion, boasts a strong foothold in France, as well as a solid presence across Europe.

“Tikehau Capital is pleased to be able to seize the unique opportunity of acquiring Sofidy. We have high ambitions to grow in the real estate sector,” Mathieu Chabran, co-founder of Tikehau Capital, said in a prepared statement.

Sofidy made its debut in 1987 and today the asset manager is one of the top independent companies in the SCPI sector—or REIT market—with a management portfolio encompassing more than 4,100 assets predominantly in the retail and office sectors. The group of properties includes such buildings as the Bose headquarters at 26/28 rue de Winchester in Saint-Germain-en-Laye, France, which Sofidy acquired in December 2017 on behalf of SCPI EFIMMO.

The purchase of Sofidy will allow Tikehau to increase its total real estate assets under management nearly threefold in one fell swoop, expanding its portfolio from €2.6 billion to €7.4 billion, or roughly $3 billion to $8.6 billion. 

Tikehau expects to finance the purchase of Sofidy with cash and a nominal contribution in kind in new Tikehau shares. If all goes as planned, the transaction will close in the fourth quarter of 2018.

Vive La France

Global investment in France’s commercial real estate market has been robust over the last few years and activity in the first six months of 2018 indicated no signs of waning interest among investors. As noted in a first-half 2018 report by commercial real estate services firm JLL, “[Year-over-year] investment in France is up by 60 percent as cross-border inflows, primarily from global funds, the U.S. and Germany, more than doubled.”

Tikehau plans to follow its acquisition of Sofidy with the purchase of Paris-based Selectirente, a real estate company specializing in commercial leasehold properties. Selectirente’s approximately 897,400-square-foot portfolio is managed by Sofidy.

Image courtesy of Sofidy