Euromoney Liquid real estate March 2007
Banque Privée Edmond de Rothschild has teamed up with real estate specialist PI Performance to launch what it is calling the "first truly global property fund". The LCF Edmond de Rothschild Prifund Alpha Property Securities is a fund of funds based in Luxembourg. The Swiss bank has been authorised to distribute the fund in Switzerland.
In light of swiftly growing levels of investment and opportunity in global real estate markets, the launch could be considered timely. Some estimates point to as much as $6 trillion in investible real estate worldwide. Banque Privée Edmond de Rothschild will seek to maximise gains through a broad exposure to this market.
That is easier said than done. Real estate markets are highly localised. Supply is mainly driven by local fundamentals, and there is little correlation between different regions. Added to that are the usual difficulties concerning tax and legal structures.
How, then, to overcome these obstacles? This is where the collaboration with PI Performance is critical. The two companies will jointly select fund managers with local knowledge key to successful property investment.
"We believe this is an excellent structure for the real estate field," says Stephane Ensini, head of marketing at Banque Privée Edmond de Rothschild.