The Primonial Group has launched ESI, a pan-European open real estate fund dedicated to social infrastructure, mainly comprising real estate from health but also educational real estate and residential real estate. The objective of ESI is to reach an outstanding amount of around EUR 1 billion (US$ 1.129 billion) by 2022 to support the collective effort at the service of health actors and the future financing needs in terms of infrastructure. in Europe.

ESI already has nearly EUR 450 million (US$ 508 million) in investments made - or in progress - relating to healthcare assets (clinics, retirement homes, etc.). ESI is aimed at a clientele of institutional investors, local or international, looking for recurring income and a return on the capital invested over the long term. The fund aims for a target annual distribution rate of 5%.

The fund's strategy is to invest exclusively in social infrastructure by targeting dedicated quality assets:

• health and accommodation for seniors (clinics, medical centers, nursing homes, senior service residences, etc.),
• education (schools, training centers, crèches, etc.),
• affordable housing or accommodation reserved for certain specific categories (intermediary / social, student residences, etc.).

The ESI fund aims to invest on a European scale, in territories with solid fundamentals, with overweight in Northern European countries which will represent 80% of the target allocation (euro-zone countries: Germany, Austria, Bas, France, etc). In terms of asset typology, ESI will be 80% invested in healthcare real estate and in housing for seniors, 15% in educational real estate, and 5% in affordable housing.

The health pocket will ensure a recurrence of income thanks to long-term leases signed with leading health operators (national or European in scope) while the education and housing pocket will potentially offer capital appreciation by a selection of locations with attractive fundamentals in terms of demography, rental demand and price level or rents.