Powerhouse France, a new investment vehicle organised and managed by TwentyTwo Real Estate, has completed the acquisition of Financière SELEC from investment vehicles managed by LBO France and Deutsche Asset and Wealth Management’s real estate investment business (formerly RREEF Real Estate). Powerhouse France financed the acquisition with equity provided equally by Massena Partners and Farallon Capital Management L.L.C.
Financière SELEC owns a portfolio of circa 7,600 mainly single family units with a value of circa €1 billion located across France and rented to EDF under a long term master lease agreement.
In March 2013, prior to the acquisition, the portfolio was refinanced with a €620 million five-year mortgage debt facility arranged by Natixis, 60% of which was placed by BNP Paribas Corporate Finance with institutional investors through a securitisation vehicle.
TwentyTwo Real Estate was founded in 2012 by Daniel Rigny, formerly a partner of Perella Weinberg, and this acquisition represents its very first transaction.
Hogan Lovells and Godet Gaillard Solle Marraux (GGSM) were deal counsel to the investors on this transaction, with Xavier Doumen, Hogan Lovells Corporate partner, and James Vaudoyer, GGSM tax partner.
The other Hogan Lovells team members: Stéphane Huten, partner, Arnaud Deparday and Audrey Distler, associates, advised on the corporate aspects; Michel Quéré, partner, and Maria Klass, associate, on the financing aspects; Bruno Knadjian, Counsel, and Virginie Aïdan, associate, on the tax aspects; Corinne Knopp, partner, and Franck Jurquet, associate, on the real estate aspects.
