Private Assets
Mirabaud Sustainable Cities
Delivering superior-risk adjusted returns by financing sustainable real estate projects in France.
The strategy
Mirabaud Sustainable Cities provides equity to leading developers to finance restructuring and new-home programmes across France, with a focus on the leading regional cities. We provide financing for the acquisition of land plots and the restructuring of existing buildings, targeting 12% internal rate of return (IRR) net of fees over a 3-6yr time horizon at project level on a 1.6x multiple of invested capital (MOIC).
Who we work with
We have partnerships with France’s 15 leading tier-one developers, which allows us to utilise the thousands of researchers they have on the ground identifying the most attractive potential opportunities.
Unique access & approach
Mirabaud is the exclusive partner for holding assets with Bouygues Group. Our joint venture has a total equity investment of EUR100m to buy plots of land prior to development. There is no other such partnership in the market.
We are progressively becoming the no.1 institutional partner for the largest French developers and have deep conviction in the long-term value appreciation of the land plots and buildings being developed.
Investment highlights
| RESILIENT DEMAND | 500,000 to 600,000 homes needed per year by 20301. |
| LIMITED SUPPLY | Only 375,000 housing starts per year2. |
| ACCESS TO OPPORTUNITIES | Well-established connections drive strong deal flow with top developers. |
| RISK MANAGEMENT | Predictable IRR thanks to well-managed risk, robust business plans & a focus on reliability. |
| EXPERTISE | Specialised team of industry experts with a strong track record of successful deals & partnerships. |
| SFDR ARTICLE 9 | A private equity fund to finance the urgent transformation of cities. |
1 Rexicode and Nexity estimates
2 Sit@del (2011/2021)
Investment case
DRIVERS
Increasing household numbers, alongside lifestyle changes such as working from home and seeking a better quality of life, are driving change, as is regulatory pressure for more sustainable living.
DEMAND
The drivers are increasing demand for housing units in smaller cities, flexible workspaces, and energy-efficient homes and businesses. The continuing need to reduce carbon emissions will also shape demand.
OPPORTUNITY
Investment is needed to replace old buildings with greener homes and offices, re-structure existing buildings and ultimately transform smaller cities into the smarter, sustainable, desirable cities of the future.
We believe France's approach to sustainable city redevelopment provides a unique and robust return generation opportunity through the provision of development capital.
Related insights
Mirabaud Sustainable Cities
New French government pact strengthens supply/demand dynamics in intermediary housing
Mirabaud Sustainable Cities
Regulatory changes boost investment landscape for housing transformation projects
Contact us
Asset management
Benjamin CARTER
Head of UK Wholesale