Real estate

Approach to investment : opportunistic strategy, core plus risk profile

Armat Group’s business focus is small to medium sized real estate transactions where it will always be an active stakeholder. Armat Group will focus on transactions having a core plus type risk whilst offering mid-teens returns, thanks to :

  • its ability to leverage its extensive international network built over more than 25 years
  • its ability to react quickly to new opportunities 
  • an opportunistic approach both in terms of structuring and financing

Armat Group has a small, creative and experienced team. In particular, Armat Group is aiming to create value by:

  • sourcing off-market transactions through its extensive network
  • finding real estate partners able to generate growth opportunities
  • managing complex transactions
  • managing turnaround requiring financial restructuring in case of distressed type situation
  • sorting out special situations (such as generational successions, shareholder conflicts, crisis) where more traditional investment companies and funds cannot easily/quickly invest

Positioning : Armat Group targets

  • Armat Group is active on small to medium sized real estate transactions. These will have high growth potential through rent or yield and/or an asset management/development angle.
  • Armat Group is typically looking for average IRRs in the 15% range.

Conditions of investments:

  • Majority share, or minority with strong governance rights
  • Ability to co-invest or syndicate with its network of investment partners
  • Pro-active involvement into the strategy, no passive investments
  • Typical investment horizon between 3 and 5 years, possible opportunistic approach for shorter or longer holding period
  • Clear path to liquidity / exit strategies at all stages planned from the start

Geographic priorities:

  • Europe
  • US
  • Asia
  • Selectively in other parts of the world (e.g. Brasil)

Type of investments

  • Financing (e.g. the Aldagate Tower transaction)
  • Real estate in prime location with asset management angles or development potential (e.g. in London, Paris and Switzerland)
  • Real estate located in the South of Europe, but which are either located in prime location or which have long leases to strong tenants
  • Highly structured sale and Lease back transactions
  • Asset located in fast developing countries with high potential of growth either in term of rent or in term of yield (e.g. Brazil)