Avignon Capital, the European property investment firm, announced the end of its financial year with a record deal volume across Europe, totalling €565m.
During the 12-month period the firm continued investing in attractive and well-located assets despite the uncertain economic and political environment with 18 new acquisitions in the UK, Netherlands and Germany. In addition Avignon Capital completed seven disposals some of which delivered triple digit returns on equity:
– In January 2017, the firm sold its Copenhagen prime retail portfolio for €119m, producing a 154% return on equity;
– In February 2017, the firm sold Østensjøveien 27, a prime office building in Oslo, for €61m, producing an 87% return on equity;
– In July, Avignon sold Fontanella 6-8, a prime office and retail asset in Barcelona, for €65m, producing a 135% return on equity;
These high returns demonstrate Avignon Capital’s ability to identify real estate market opportunities ahead of the trend, apply innovative asset management capabilities and drive the rental and value growth of the property.
As part of Avignon Capital’s wider European expansion it opened an office in Berlin in October 2016 to strengthen its on-the-ground knowledge and a local presence.
Avignon Capital has diversified the portfolio further by entering the hotel real estate market this year, acquiring new assets in Berlin, Frankfurt and Amsterdam. Avignon Capital’s entry into the Dutch market this year with the acquisitions of Amsterdam NH Hotel, the OPCW headquarters in Hague and Hyatt Place Amsterdam Airport Hotel marks the seventh country in which the firm has done business, following the UK, Germany, Spain, Denmark, Norway and Poland.
Patrick Flaton, CFOO at Avignon Capital, said: “We had a record financial year, delivering outstanding returns to our clients, entering new markets and building our specialist team.
“Our talent to identify long-term property trends and ability to tailor the investment approach to each client’s individual needs is key to the fantastic returns that we generated in the last year. Whether the client is looking to invest in sustainable buildings or particular sectors such as hotels and offices we always customise our strategy to suit the clients` requirements.
“We want to build on our success and look forward to maintaining smart relationships with investors, expanding into new markets and building our portfolio of innovative buildings.”