Expansion of the joint venture to more than EUR 600 million planned
EDF Invest, the investment arm of global energy company Electricité de France (EDF SA), has entered into a joint venture with international real estate investment manager Savills Investment Management (Savills IM).
EDF has acquired a 50 percent stake in Savills IM's holding company of the European Living Fund (EULIV) and has also made a significant capital commitment for the joint venture. As part of the partnership, the joint venture's portfolio is to be expanded to more than 600 million euros over the next two years by acquiring and managing apartment buildings and student residences in Europe.
The joint venture builds on the portfolio of the European Living Fund, which includes properties in Germany, the Netherlands, Spain and Sweden with a volume of EUR 220 million. The Core/Core+ fund, launched in 2023 and backed by Savills IM's minority shareholder and investor Samsung Life, focuses on modern, sustainable residential properties across Europe. To date, four transactions have been carried out with a total lettable area of 64,000 sqm. Patrick Au Yeung will take over the portfolio management of the joint venture.
EDF Invest manages the long-term provisions for the dismantling of nuclear power plants – the company currently manages around 11 billion euros in investments, of which 1.5 billion euros are in real estate. The previous real estate strategy focused on the hotel, office, industrial & logistics and retail segments. The partnership with Savills IM marks the first major commitment in the European living sector.
The Living division is a key strategic growth pillar for Savills IM, which currently manages a portfolio of over 9,000 residential units worth €2.8 billion in the UK, Europe and Japan. The joint venture will work closely with Savills IM's European platform, which manages over €22 billion in assets under management across various sectors.
Patrick Au Yeung, Senior Fund Director of the European Living Fund at Savills IM, says: "For our EULIV, we are successfully investing in high-quality multifamily properties with high ESG standards, providing our investors with stable income and long-term value growth. Our consistent investment strategy has also convinced our new partner. We will now further diversify the portfolio and, in addition to existing markets, also tap into new countries and residential segments where we see attractive opportunities – including Denmark, Italy and Ireland."
Gerhard Lehner, Head of Germany at Savills IM, adds: "Demand for residential real estate remains high – both from tenants in view of the structural undersupply in Europe and from institutional investors. The joint venture with EDF Invest is another milestone in our Living platform. At the same time, we will continue to drive forward our growth strategy in the living sector."
Clémence Caniaux, Head of Real Estate at EDF Invest, says: "EDF Invest is very pleased to acquire a stake in the high-quality residential real estate portfolio, which has great development potential. This partnership strengthens our commitment to the European residential real estate sector and is fully in line with our long-term investment strategy. It also represents an important milestone for EDF Invest, as it is the first time that we are involved in a residential real estate platform together with leading partners. This transaction reflects our ambition to accelerate the diversification of our portfolio across both asset classes and geographies. We are delighted to enter into this partnership with Savills IM and Samsung Life."
Philippe Berrin, Investment Director at EDF Invest, adds: "This investment marks a further step in the implementation of our diversification strategy and underlines our confidence in the resilience and long-term potential of the residential real estate sector. By joining this high-quality platform, we are strengthening EDF Invest's presence across Europe and positioning ourselves to create sustainable value and unlock new growth opportunities in this dynamic segment."
