Pictet Alternative Advisors has announced the launch of Elevation Core Plus, a new fund dedicated to investments in private equity real estate (PERE).

The fund will complement the Elevation franchise, set up following the raising of a first PERE value-add fund, closed at a fixed ceiling of é700 million in February 2020.

The fund aims to offer investors two sources of performance: a stable return from rental income linked to the consumer price index (CPI), thus providing partial protection against inflation, and a capital gain from asset management and valuation.

The investment approach taps into three major growth engines that are catalysts for change within real estate in a post-pandemic environment, namely sustainability, well-being and technology.

In a world where attention is focused on the challenge of the climate emergency, one of the goals of Pictet Elevation Core Plus is to improve the sustainability of existing real estate, thereby reducing their environmental footprint. Evaluated using our proprietary framework, this approach to real estate design and operation also improves, we believe, returns for investors.

The fund will invest primarily in high-quality residential and office buildings in major cities of Western Europe, in assets characterized by their particular situation and in sectors such as ‘last mile’ logistics, where the Demand exploded during the pandemic as e-commerce spread to new types of customers and areas such as hourly delivery.

The fund will be managed by a team led by Zsolt Kohalmi and made up of 11 people, whose senior members have 116 years of investment experience and € 35.5 billion in real estate transactions.

Zsolt Kohalmi, Head of Real Estate and Co-CEO of Pictet Alternative Advisors, said: “The pandemic has accelerated the evolution of the way we live, work, shop and spend our leisure time, in a context where the demand for more efficient and environmentally friendly buildings is increasing at an unprecedented rate. Tenants are always demanding more flexibility, with an emphasis on a healthier lifestyle and on-demand services, which justifies added value for sustainable buildings. We will focus our investments on “new economy” real estate, in order to create a positive impact and reap the rewards of this shift in demand towards a more sustainable future ”.