Target Information

The target of this investment opportunity is a Parisian real estate operator that has been active for over 20 years. This company specializes in the management and valorization of premium real estate assets, particularly in luxury residential properties and high-end hotel investments. The operator currently holds a portfolio of approximately ten exceptional assets, which include luxury buildings located in the heart of Paris and four- and five-star hotels.

Anaxago presents a chance to support this operator through a structured private debt financing initiative. The financing will be secured by the assets of the group's holding company and a specific guarantee, which includes a first-rank mortgage on a prime waterfront property in Saint-Barthélemy, situated just a short distance from the renowned Cheval Blanc hotel.

Industry Overview in France

The French real estate market has shown resilience and growth in recent years. With a population of over 67 million and a stable economy, France continues to attract both domestic and foreign investments, particularly in the luxury real estate sector. The demand for high-end residential properties in major cities like Paris remains robust, driven by affluent buyers seeking exclusive assets in prime locations.

Additionally, the hospitality industry in France has experienced significant recovery post-COVID-19, with an increase in tourist arrivals and domestic travel. This revival has positively impacted the performance of luxury hotels, with many establishments reporting a resurgence in occupancy rates and revenue. Investment in this sector not only provides attractive returns but also capitalizes on the country’s status as a leading tourist destination.

Furthermore, the French government continues to support the real estate sector through various incentives and policies that promote foreign investment and sustainable development. This favorable regulatory environment enhances the appeal for investors to enter the French property market, particularly in the luxury segment.

Rationale Behind the Deal

The rationale for this investment opportunity lies in the potential for high returns through a target internal rate of return (IRR) of 10.5% per year over an 18-month investment horizon. The structured financing model provides a level of security backed by premium assets, thus mitigating risks associated with real estate investments.

Moreover, the transaction aligns with current market trends favoring premium and luxury properties, ensuring strong demand throughout the investment period. The strategic geographical positioning of the secured property uplifts the overall investment profile, making it an attractive addition for investors focused on luxury real estate.

Information About the Investor

Anaxago, the investing entity, is recognized for its expertise in private equity and alternative investments, particularly in real estate. The company has established a robust presence in the market, facilitating financing solutions that cater to high-potential projects. With a seasoned team of professionals, Anaxago ensures thorough due diligence and market analysis to identify lucrative investment opportunities.

Furthermore, Anaxago is dedicated to fostering relationships between innovative entrepreneurs and investors, thereby creating a collaborative ecosystem that supports growth and development in various sectors. This commitment to excellence and strategic partnerships further enhances their capacity to deliver substantial returns to investors.

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The involvement of Anaxago in this real estate financing opportunity appears to represent a sound investment choice given the current dynamics of the French property market. The target's focus on luxury assets in prime areas of Paris is well-positioned to leverage the ongoing demand in the high-end segment, suggesting strong potential for profitability.

Additionally, the structured debt facility, secured by robust assets, offers a prudent approach to risk management. Investors can benefit from quarterly distributions of interest, providing a steady cash flow throughout the investment period. This combination of high yield potential and risk mitigation contributes positively to the overall attractiveness of the investment.

However, investors must consider the inherent risks associated with real estate investments, particularly in volatile markets. Anaxago's involvement can mitigate some of these challenges through its established expertise and market insights. Overall, this opportunity merits careful consideration from astute investors looking for attractive returns within the luxury real estate sector in France.

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