TwentyTwo Real Estate, founded by former Perella Weinberg Partners LP partner Daniel Rigny, acquired about 1 billion euros ($1.3 billion) of French residential real estate from companies managed by LBO France and Deutsche Asset & Wealth Management.
The acquisition of Financiere SELEC, comprising about 7,600 mostly single-family residential units leased to Electricite de France SA (EDF), was financed with equity provided equally by Massena Partners and Farallon Capital Management LLC, TwentyTwo said in a statement today.
“When I started looking at the deal a year ago, there were tremendous issues in Europe -- nobody knew whether Greece was going to stay in or out and nobody knew what would happen to Spain,” Rigny, who started TwentyTwo last year, said by telephone. It was a good time for the transaction because the macro-economic environment was unpredictable, he said.
The deal was done through an investment vehicle organized and managed by TwentyTwo called Powerhouse France and is the firm’s first acquisition. France is an attractive place to invest and TwentyTwo is seeking to buy more property there, Rigny said in the statement.
The Financiere SELEC portfolio was refinanced in March with a 620 million-euro, five-year mortgage-debt facility arranged by Natixis, according to the statement.
Deutsche Asset & Wealth Management’s real estate investment business, formerly known as RREEF Real Estate, is an affiliate of Deutsche Bank AG.
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